We all are constantly bombarded with credit card offers, in our mailbox, in our email inboxes and in every advertisement that we see all over the place. They may, because of this constant hassle, all seem like one big scam that should be avoided like an airborne illness. After the recent economy downslide and the ever-growing rates of credit card debt in the nation, people are shying away from credit cards in general, no matter what the offers are.
Those are all very valid reasons to be wary of credit cards, but the truth is that many people can benefit greatly from using a credit card. When used correctly, credit cards can help you build your credit and create a stable financial future. Taking advantage of a good credit card offer can increase those benefits and give you extra cash in the short term. Here are some of the reasons to take advantage of credit card offers.
You can get Extra Cash Back
Most of the time, the first things that a credit card company will offer you are some extra cash back for signing up. It may seem like just another ploy, but if you will be using the credit card anyway, having extra cash back just for signing up is nothing but a bonus for you. Before you say yes, though, you should make sure that you know the limitations of the bonus. Some credit cards will want to you spend a certain amount on the credit card within a limited amount of time before you can receive the bonus, so you need to make sure that is something you are willing to do.
You can Lock in a Lower Interest Rate
“Credit card offers are actually tailored for you, so if you are offered a low interest rate by a credit card company, it is because it is a good rate for you,” says Chris Mettler of CompareCards.com.
Again, you need to make sure that you know the limitations, because some interest rates will be low only for the first year or so, but if the rate is going to stay low for a significant period of time, it might be a good idea for you to take advantage of it.
You can get better Rewards
Getting a new credit card offer does not just mean that you will get a cash bonus when you sign up. Many credit card offers also involve better rewards the entire time that you have the credit card. This means more cash back for you every time you use your card for a longer period of time. You will need to do a little reading to make sure you understand the terms of the credit card’s rewards system, but more often than not, new credit card offers will offer better rewards than the current credit card that you have.
You can Improve your Credit Score
As mentioned before, if you know how to use your credit card offer correctly, it can improve your credit score. Having a good amount of open, available credit in your name improves your credit. If you have a lot of outstanding debt, opening a new card could hurt your credit score and should be avoided until you can lower your current debt.