The Credit Card Introductory Offer

The mail today is littered with charge card offers. Every time you open a letter from a bank, there seems to be an unbelievable deal about a new card with no interest rates, high limits and low minimum payments.

In reality, how many of these offers can be trusted at face value? It is easy to be skeptical when a company is offering what seems to be a great deal upfront, but it is important to look a little deeper to see exactly what these types of letters are really selling. A credit card introductory offer, while tempting, should be investigated before being taken advantage of.

Many credit card introductory offers seem too good to be true. Offers of no interest and high limits can be enticing and can seem like a great way to have a little extra cash to spend right now and pay off later. However, reading the fine print is always a good idea. Some cards carry zero interest for a specified period of time, but then charge a huge interest rate, sometimes upwards of twenty percent.

Also, the high limits that are offered are generally legitimate, but can also be deceiving. Many companies offer huge limits, but also require a large minimum payment every month, or a huge interest rate. A $5,000 limit that requires a person to pay several hundred dollars a month as a payment does not make a lot of sense, as it will end up costing more in the end to pay off the balance than it would to have a lower limit card.

However, not every credit card introductory offer is a scam. Some are legitimately good offers that are made available to people based on good credit history. Banks will sometimes offer cards to members who have been with them for several years and have shown good spending habits and do not overdraw on their accounts often.

This is a way for the bank to show its allegiance to a member, and for the member to begin building better credit by taking advantage of a good offer. These kinds of cards generally have normal interest rates, regulated limits that are not high enough to ruin credit scores, and are a great way to begin using credit cards safely and smartly.

Charge card offers are handed out to people on a daily basis. Through mail offers, nearly every person has been offered a card from one company or another. Some are legitimate offers with low interest rates and are a great way to build credit. Others are definitely trouble, offering high rates and high payments. The key to every offer is reading the fine print and finding out exactly what each offer includes.