Taking out a new credit card requires careful decision-making. It is important to choose the right card, and find the best deal for which you are eligible and the most appropriate for your circumstances. However, by looking beyond the card itself, it is possible to get a little bit more out of applying for a card.
Many credit cards come with rewards, gifts, and incentives. With rewards cards, you may be offered a cashback deal on money spent with the card, a free welcome gift such as a gift card for a major retailer, or reward points towards a retailer loyalty scheme. Even if you have found a card that seems perfect quite quickly and easily, it is worth seeing if another provider can offer similar terms along with a reward. That way, you still get a card that suits your needs, but you get something extra as well.
Even if the card that suits you best is not a reward card, it may be possible to get something extra from taking it out. You just have to go through a third party instead of directly to the provider. Cashback websites offer you cashback on online shopping and on certain other things like signing up for accounts with some websites. A number of credit card providers are also accessible through cashback sites. Basically, the cashback site gets a commission from the lender for bringing them your custom, and they then pass on cash to you. In the case of credit cards, you make your application for the card in exactly the same way as usual, except you first go through the cashback site. If your application is approved, you get paid money.
Striking a Balance
The only drawback to these rewards is that it is surprisingly easy to get drawn into a card that is less appropriate for your needs, and this can wipe out the benefits of the extras on offer and leave you worse off. It is easy to think that a monthly fee or a higher interest rate will still leave you in profit because of a cashback deal, only to find out the hard way that the two sums don’t match up in quite the way you thought. By either choosing a reward card or signing up for the same card through a cashback site it is likely you will be better off, but make sure to think carefully before switching to a card that is different from what you originally planned.