Many readers know the dangers of credit cards such as high interest rates, special add-on fees, and high ATM fees but credit card companies leave some interesting incentives on the table for you to take advantage of.
Some common incentives include:
- free product give-aways
- increased bonus points
- low initial interest rate
Free Product Give-Aways
Why not sign up for a new card and get the free products even if you have no intention of using the card? Consider it as payment for filling out a simple form.
Bonus Points
If a card offers you a lot of points just for signing up you may want to sign up. Just be sure to make sure you can cash in those points. Many cards offer points bonuses worth $10 or even $20. Often these prizes are redeemable in gift cards or if it's a store card towards purchases in that store.
Low or No Initial Interest Rates
If a card offers you a low initial interest rate you can transfer balances to that card, saving the interest rate difference. If you sign up for enough cards, and pay them back regularly, you may find yourself with enough introductory offers to cycle through so you never have to pay those high interest rates again!
Even better are the offers with a zero percent introductory rate and a high credit limit. If you don't have other credit card debts to pay off you can transfer the balance from a bank account with a line of credit. This account then shows you owe a negative amount so you can take the money out. If you transfer the line of credit to a high interest savings account you can earn 4-5% on the credit card company's money. This strategy can quickly lead to you earning an extra $100 a month.
Final Word
You may be used to being taken advantage of by credit card companies. Now you know how to take advantage of their incentive offers you can get your own back. Many times the satisfaction may be worth more than the actual good. Knowing you got something for nothing, or beat the system, can greatly enhance the pleasure.
