Credit card companies send prescreened offers to consumers who meet certain criteria. These offers can be found in your mailbox or online. They can help you save money and avoid a hard inquiry to your credit score.
These offers can be in the form of airline miles, gift cards, cash back, or other rewards. However, you should check the terms and conditions to make sure you can meet the spending requirements.
Sign-up bonuses
Credit card sign-up bonuses offer a way to add value to a new card. These offers promise extra points, miles or cash back rewards when you meet a spending minimum as a new cardholder. These rewards can be redeemed for merchandise, gift cards and travel. However, you should make sure the card’s rewards program fits your needs and budget. Also, keep in mind that credit card issuers often restrict how often you can earn a welcome bonus on the same card.
A great sign-up bonus can help you earn valuable rewards for your purchases, and even pay off a credit card balance. However, you should always evaluate a card’s other perks, including its annual fee and rewards potential after you’ve earned the bonus. The values listed here are based on valuations by U.S. News and may change over time. A more detailed breakdown of the rewards can be found in our credit card reward calculator.
Reward programs
Credit card rewards programs allow you to earn cash back, points or miles on your purchases. These are redeemable for merchandise, gift cards and travel perks. Some credit cards also offer return protection. You can also use credit cards to build your credit history, which helps you qualify for more loans in the future. Depending on your spending habits and your budget, the best credit card for you will be one that offers rewards that match your needs.
While credit card rewards can be lucrative, they are only valuable if you pay off your balance in full each month. If you’re planning on carrying a balance, you may be better served by a card with a lower interest rate. Many credit card issuers offer special introductory rates, such as 0%, that last for a limited period of time. You should check with your card issuer to ensure that you understand the terms and conditions of these offers.
Interest rates
A credit card’s interest rate is one of its most significant costs, and it can make or break your ability to pay off balances on time. However, the exact interest rates vary from company to company and from one type of card to another. Some cards have low rates, such as 0%, during an introductory period that lasts a few months (fees apply). These are great for consolidating debt from high-interest cards to a lower rate card.
While a lower interest rate may seem minor, it can significantly reduce the amount of money you’ll owe over time. You can also ask a card issuer to reduce your interest rate, and they might be willing to negotiate. Just remember to keep your requests reasonable and polite, and be prepared to try again later if you don’t have any success. Ultimately, a good credit score will help you secure the lowest possible interest rate. Then you can focus on paying down your debt faster.
Fees
Credit cards are useful tools if you use them responsibly, but they can come with fees like annual ownership fees, foreign transaction fees, balance transfer fees and cash advance fees. These fees can make it difficult to keep your credit card debt under control. However, many of these fees can be avoided by shopping around for a card with low fees or zero-percent introductory interest rates.
A pre-approved credit card offer is a firm offer from a card company that you have been approved to receive. These offers are based on the criteria that the card company uses to select applicants. The card company checks your credit report and may perform a hard inquiry to determine whether you meet their criteria.
A returned payment fee is charged if your bank returns a credit card payment to the card issuer due to insufficient funds in your account. The amount of the fee varies by card issuer and is specified in the card terms.
