Everyone gets junk mail that no one wants to have cluttering up his or her mailboxes as well as the email accounts. The typical person receives on an average five to six new credit offer each week. It is no wonder that many people are in a large amount of debt. Many people will shred the offers as soon as they receive them but the good news is that there are times where it is okay to accept the new credit card offers. The tips below will help you to understand when it is okay to say yes.
If you want A Credit Card That Offers Rewards
If you only use a credit card for emergencies then it is probably okay to have a credit card that is just a basic format. This means that there are no frills at all. However if you use a credit card more often than not it will make sense for you to get a credit card that offers some sort of a rewards program. Many cards will offer you points, miles or even cash back for every dollar that you spend on the credit card. These points can then be redeemed for things such as airline tickets, hotels and even gift cards. You should compare the different programs and decide what card will best fit your needs.
If You Want To Transfer Balances
If you are interested in paying off a credit card you have probably realized that it is much easier to say than do. It can be even more difficult if you have a very high interest rate. If you receive a credit card offer that is offering you a lower interest rate you might want to consider transferring your balances to that card in order to help pay the balances off sooner rather than later. You should also have a plan in place once the transfer occurs that will help you to pay down the balance quicker.
If You Are Looking For A Better Interest Rate
Another perfect time for you to accept a new credit card offer is when you are looking for a better interest rate than what you are currently paying. If you have excellent credit you should not be paying a high interest rate. It is possible that your current credit card company will not lower your interest rate no matter how many times you ask but you can still get a lower interest rate by accepting a new credit card offer. Of course you should be sure that it is not just an introductory interest rate that you will be receiving.
You Want To Improve Your Credit Score
One of the things that will affect your credit score is your credit card utilization ratio. The lower your ratio is the better your credit score is. A credit card utilization ratio is figured by your maximum amount of available credit and how much you are currently using. The lower the ratio is the better. Therefore is you open a credit card and you do not use it your ratio will be better.
If You Want A Credit Card That Is Accepted Almost Everywhere
Many people like to have a credit card that will be widely accepted. This can be true if you are a person who uses a credit card almost everywhere. This is why it is important to have a credit card that can be used in a widely number of places. No one likes to get to a register to make a purchase to find out that the credit card he or she intended to use is not accepted.
Obtaining a new credit card is a difficult choice. It is important that you are smart when you decide to get a new card and be sure that it will fit your needs. If you are getting a new card just because you want to it is probably not a good idea.
Image credits to : Carlos Reis