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Credit Card Freebies Up For Grabs For People Who Qualify

By Faye Mergel
Published: Wednesday, June 23rd, 2010

82821223There is an age old saying about early birds getting the early worms. Nowadays, thought it may still apply people with excellent credit report get all the worm— or for this specific matter, the freebies.

Credits cards have become a staple in every American’s wallet for some time now. The aggressive promotions regard these plastic cards as manna sent from up above. Nevertheless, if you will look closely some cards charge interest rates that are too steep. Most of these companies also offer the free items or rebates on purchases in order to mask their bad side.

But the good news is that people with excellent credit are in the best position to make the most out of being part of that credit company’s customers. Excellent payers mean that you are able to pay everything in full each month without lapses. Once the customer is able to do just that, he is already entitled to free miles that can be used for airplane flights, 1% to 5% rebate on purchases that can be either be sent to you in cash or check or automatically deducted in your next monthly payment.

Lately, credit card companies have opened up this scheme to people with less stellar credit performance. This move is done in order to lure the people with the free items and then as they realize that they cannot pay everything in full each month, the 14% annual percentage rate applies to them. When this happens, the consumers get to think of the rewards less and start thinking about how to pay off the credit card interest as soon as possible. Many reconsider refinancing. Others just become more mindful of paying their dues each month.

Another common free item are cheap or free plane tickets to tourist destinations. Several tactics to get the tickets and not use the credit card for more than a year were employed—such as cancelling the card before the next annual fee is demanded from you. This might work out just fine and you can get the reward and have the card cancelled but it will also affect your credit score since cancelling a card means lowering your available credit.

The bottom line is to use the credits cards with care. Free items are great but only if you can handle the risks that come with it. If you know you cannot keep up with the monthly payments then opt not to sign up for one.

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