Weed Through Credit Card Introductory Offers

 by Jason Collazo

When establishing a new credit card, don’t be blinded by introductory offers and extra rewards that deter you from the main goal of having a credit card, which is to borrow and pay money back in a timely fashion, so you can afford the fabled American dream.

Cash back credit cards that promise hundreds of frequent flyer miles and sign-up cash bonuses may suit your temporary needs, but in the long run, a card like that could leave you coming up short in the credit card world.

“Introductory offers are a dime a dozen. Don’t jump at the first one you see, because chances are that there is a better offer around the corner,” said a representative at Credit-Land.com.

In fact, signing up for many of these promotional cards and offers can have a negative affect on your credit score, especially if the new accounts are opened within a short amount of time. This is because credit card reporting bureaus check the ratio of credit you have used compared to your available credit. If there is a sharp increase in available credit, the credit reporting will become suspicious, and take it out on your credit score.

So it’s important to apply for credit cards that will progress your financial situation in the right direction.

If you have a large family, the American Express Blue Cash Preferred credit card may be a good fit. It’s good for a larger family because the card gives one of the highest cash-back rates in the credit card industry. With this card you can get up to six percent cash-back at supermarkets, three percent cash-back at department stores and gas stations, and one percent cash back on every other purchase made with the card.

Rewards could add up quickly if shopping for more than one in an economy experiencing rising food and gas prices. The card also offers a $100 sign-on bonus for cardholders new to American Express who spend over $500 in the first 90 days the card is issued.

One downside of the card is that it comes with an annual fee of $75. If this is too expensive, ask about the American Express Blue Cash Everyday card, which offers reduced cash-back benefits, but a non-existent annual fee. The Blue Cash Everyday card gives consumers’ three percent cash back on supermarket purchases, two percent cash back on department store and gas station purchases, and one percent cash back on everything else.

Decide which version of the card works best for you. Don’t disregard the annual fee, as it is possible that you could end up saving more money in the long run, in spite of the fee. To illustrate, if your family is on a $2,000 a month budget, you would earn back your annual fee in a little over a month. A family with a budget of this size could save over $1,200 a year on groceries; with the no fee card savings would only be about $620.

An important thing to keep in mind when you are going through your respective credit card applications these coming months, truly.

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