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Credit »”>Credit cards today are a different animal than they were 20 years ago. It used to be that a credit card was only used to buy things now and pay later. The fierce competition between the credit card issuers has made it possible for cardholders to take advantage of owning a credit card.

One of the ways that card companies compete is by offering rewards or low introductory interest rates. These can be anything from cash back rewards to free flights. The reward is based on how much you use the card. There is a trick to this however and we are going to see how to use this to your advantage.

Rewards cards: You should definitely look around for the best offer when it comes to cards that give you rewards. You want to look for rewards which will genuinely be useful to you. If you don’t fly often, or don’t charge a lot on your card, then it’s unlikely that a card which offers free flights as a reward is right for you. These sorts of rewards programs often require you to spend a lot before you get a flight.

Try to find rewards which fit your needs. Cash back rewards are good for anyone. Always read the fine print though and be sure to ask the rep fro the credit card issuer if there are any conditions or limits attached to the rewards.

Additionally, ask if there is a time limit on the rewards - they will sometimes only be valid for a limited time and will expire if you don’t use them.

If you are thinking of applying for a gas station reward card, be sure that there is one of those gas stations in your city first.

Low introductory rates: This one has a lot of possibilities. For instance, let’s suppose that you have a credit card which has a 19% APR (annual percentage rate). You make a few small charges and have a balance which can be paid off easily within six months. Then you find a card with a one year 9.9% introductory APR for new customers. You could get this new card, transfer your old balance to it and pay it off much more quickly while saving a substantial amount of money. You could then either cancel the old card or save it in case you ever need it.

Keep this in mind - when the credit card companies compete, you come out on top. Don’t be afraid to shop around for the best offer - the credit card companies want your business. You might be surprised by the deals you find!

Do your research before you sign up for any cards - you stand to get some great rewards and perks this way; just don’t rush into anything, there might be a better deal right around the corner.

Filed under: Finance