When to Avoid Credit Card Introductory Offers
Introductory credit card offers are a good thing, right? After all, they give you deeper discounts or more perks than “normal” credit card offers. But hold on. Before you get too excited about an introductory offer and let it entice you to apply for a new credit card, let’s look at the other side of the issue. Sometimes introductory credit card offers are not the best option for you. Here are a few examples of when that might be true, and why.
If any of the following applies to you or the credit card introductory offer, you might want to pass it by:
1. The introductory offer is available only for a very brief period.
One of the most common types of introductory offers is the balance transfer offer. You’ll be given a very low balance transfer interest rate for a certain amount of time. The idea is to pay off the balance transfer within that introductory period (otherwise it reverts to a higher interest rate, defeating the purpose of using a balance transfer to save on interest).
Carefully check the time limits on these balance transfer offers. If it’s only available for three months, don’t apply for the card unless you know you can pay off the full balance in that time. Instead look for longer offers like the 12 month offer from the Citibank Gold card.
2. Terms after the introductory period aren’t appealing.
Never apply for a credit card just because it offers a good introductory deal on something. You also need to account for the overall terms that kick in when that introductory offer expires. It might be great to earn more rewards points (or get bonus points) up front. But if your regular spending will earn points much more slowly than you could with other credit cards, the introductory offer is little more than a marketing ploy. You can do better with another credit card.
3. The introductory offer puts too many limits and conditions on you.
Let’s use rewards card introductory offers as an example again. Sometimes you’ll find bonus point offers. Some of those offers only give you your thousands of bonus points when you use your card for the first time with a specific company. For example, you might have to book a trip with a certain airline to get your bonus frequent flyer points.
If you didn’t already have a trip planned, and you decide to take one (or spend money elsewhere) just to get those points, you might end up spending more up front than those bonus points are actually worth. If an introductory offer pressures you to do something you wouldn’t normally do, it’s probably best to skip it and look for a card that’s a better fit.
Remember that credit cards often result in long-term relationships with the issuing company. Always look for credit card offers that will work well for you in the long haul, and let introductory offers be added perks rather than the sole or primary reason you apply for a card.
Similar Posts:
- Credit Card Choice Considerations
- 4 Important Terms to Look For in the Fine Print
- Comparing Balance Transfer Credit Cards
- Get More Out of Your Card Than Introductory Incentives
- Earn 26,000 Bonus Points With This Limited Time Offer From Citi
