Discover Great Deals For American Card Credit

Introduction

A credit card is a small plastic card issued by a bank or financial company. Most American credit cards allow the holder to buy goods and services based on their promise to pay later. American credit cards have higher interest rates thans many consumer loans. They are the most popular form of payment for goods and services and many stores accept payment of goods and services through credit card. The industry of credit cards has had a lot of competition in the last 15 years in pursuit of growing and adding new customers. These companies use seductive introductory offers to get you into buying their credit card.

Step 1

Balance transfer is where an American credit card company offers to pay off your debts on your old card and move the debt to their company's card. If, for example, you are paying 15 percent on your debt with Company A. Company B then offers you, say, 0 percent for six months and hopes to reel you in. If you take the offer, it will pay off your Company A debt and put the same amount of debt on the new B card and for at least for six months, it will not charge you any interest on that amount. You will possibly have to pay a small fee to the new or old company in the course of transition. So before you make a move, figure out how much you will save in interest costs and how that compares to the fee.

Step 2

Various American credit cards reward you with frequent flier miles at a certain air line, other cards also allow you to redeem the miles at any airline. These reward programs will depend on how supple you can be in your travel plans and where you want to go. You can get rewarded if you can collect enough miles on those cards that are linked to a specific airline. Great value can be achieved when you are traveling long distance especially in first class. The problem with these rewards is that you can not always get your first choice of dates. It helps to plan your trip a year or so in advance but many people can not plan that far ahead.

Step 3

Many people opt for free American credit cards that have no annual fees without knowing that some cards with annual fees can be quite lucrative. For example, with a card that charges $60 annual fee and you spend $30,000 on a card each year, you earn 30,000 frequent-flier miles, those frequent flier miles are probably worth more than the $60 annual fee.

Step 4

One should avoid advertisements for cash back or rewards on some American credit cards. Most rewards are only worth a penny or two for every dollar you spend. One should go for those cards with the lowest annual interest rate. Many card companies also charge a range of interest rates on a single card from 14 percent to 22 percent depending on your credit history. Rewards credit cards can be expensive if you do not off the balance each month. They benefit you the most if you use the credit wisely.

Step 5

Some American credit cards can extend the manufacturer's warranty by up to one year when you use the cards to purchase items. Some cards will also pay to repair broken items or replace lost purchases within 90 days. This can be a great advantage when you use these purchase expensive electronic items.

Step 6

Some American credit cards offer the option of using a credit card to withdraw cash from an ATM. This can be of great advantage to you when you urgently require cash. You will probably be charged a higher rate of interest and a withdrawal fee this can be very expensive compared to the interest charged on purchases and one should hence avoid such withdrawal unless when very necessary.

Tips

• Enquire whether your American credit card company will give you a balance transfer facility.
• Ensure you know the interest rate that is applicable to your card.
• Take a card that offers an ATM withdrawal option.
• Ensure you know all the recurring charges applicable to your American credit card.

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