8 Ways To Evaluating A Credit Card Offer

How do you get the best credit card offer if you want to consolidate credit cards into one?

With so many options out there, how do you even begin?

As mentioned elsewhere, the best offer for you may not be the same one that Aunt Theresa got. In fact, the more personal or customized services a card provides, the better it may be for you. In general, though, there are a number of ways you can go in evaluating a credit card offer. Here are 8 of those:

1.) Know a good rate when it's in front of you.

You know that the interest rate is not everything. But, you should know what rate you deserve, based on your FICO score.

For example, if your FICO score is 720 or more, you should be able to qualify for interest rates under 10%.

2.) Short term, long term.

Make sure you evaluate and compare both the short term credit card offer rate (a teaser rate that lasts 3,6, or 12 months) and the long term rate (you don't want to get a higher rate than what you are currently paying).

3.) Compare purchase rates. Sometimes, you'll see a nice low introductory rate offer and even good long term rate offer, but a much higher rate for new purchases.

You should compare purchase rates because any payment you make is deducted to the low rate portion first, while the higher rate continues to gain interest.

Even if a card offers a low rate for purchases, check to see if it is permanent or if it goes up after a few months.

The best way to do this is...

4.) Read the fine print.

I know - you'd rather twiddle your thumbs than read that - but it's the only way you get to know the truth.

What to look for? Look for how long the low rate applies, fixed/variable rate statement, as well as any fees, such as..

5.) The dreaded balance transfer fee.

During your evaluation, make sure you know how much fee you will be charged from the cards you'll be transferring from and try to find a card you will transfer to that has no balance transfer fee included.

6.) Ditch the "Bait and Switch".

One thing you should always watch out for is the old bait and switch technique.

Lenders send you a credit card offer or advertise a "preapproved" rate when you consolidate credit cards, then when you apply they tell you that you don't qualify.

So you get a higher rate and they expect you to take it.

Don't fall for it.

Tell them that they failed to qualify your evaluation criteria.

7.) Check your grace period.

You need to know what grace period you'll get.

Your grace period is the number of days (if you don't carry a balance) from the day your statement closed before you have to pay interest.

Traditionally, the grace period offered is about 30 days, but now its averaged down to about 23 days or even less. Some cards have zero grace periods, so be on the lookout.

8.) Don't forget your rewards.

Evaluate a credit card offer based on the rewards. Read about it here and take your pick. Do what's best for you.