subject: Getting the most from Special Credit Card Offers [print this page] Getting the most from Special Credit Card Offers
These days it seems like every business in the world offers a credit card of some type. Whether we are talking about department stores, gas stations or large online businesses, everyone seems to be offering something. Depending on your interests and needs, some of these offers can help you save money and reap rewards on things you purchase.
Cards offered by gasoline companies and department stores are very specialized. Usually you can only use these cards at the business that offers them. If you have a preferred store in which you shop or if you buy gas from one particular company, then these cards probably make sense for you. However, you should never have more than a couple of this type of credit card. Any more than that and you will start to hurt your credit due to the large amount of unsecured purchasing power you have related to your income.
Generally speaking, these cards should be paid in full at the end of the month. Think of them as being a convenience that offers you a few perks rather than a source of a quick loan. Carrying high balances on these cards will not only cost you a lot in interest, it will also damage your credit. A good rule of thumb is to carry a balance of no more than about 10% of your credit limit on the card.
Some people fall into the trap of letting the card rewards tempt them to spend more than they normally would. It is essential to avoid this behavior. If fact, this is exactly what the companies want you to do. By doing this you will not only lose the benefits of the rewards, but you will also dig yourself into debt.
Another benefit of these cards is that they are often easier to acquire than a regular credit card. This makes them a good option for those looking to establish credit. As long as you pay the bills on time, you will soon improve or establish your credit rating.
Specialty credit cards have a lot to offer if consumers use them wisely. The perks can add up to hundreds of dollars a year based solely on purchases that you would make anyway. As long as you use them responsibly, these cards can be a beneficial addition to your personal finances.
