When is a Credit Card Deal Good?

What is a good credit card deal? You must have heard people say - 'I got a good credit card deal'. So if you happen to be looking for a credit card at that moment, do you just go with what your friend has told you as a good credit card deal?

As you might expect, a good deal for your friend may not mean it works for you. Here is why. There are so many different cards available now that give rewards for various activities that make most such cards attractive to a focused group of people. If your friend is a scuba diver and has a scuba diving card, but you are afraid of the water and want to stay home and work in your garden, then of course her good credit card deal is not going to be good for you.

So you can see that lifestyle plays an important role these days on whether a paricular credit card will be able to offer you enough rewards given the extra costs you will pay to have the card.

This is because the lifestyle and the needs differ from person to person (and that is precisely the reason why every credit card supplier offers so many different kinds of credit cards). It might be true in some cases (where the lifestyle of two individuals/friends is similar) that the credit card deal which is good for one will be good for the other too, however, this is just in a few cases.

If you travel a lot and to far off places by air, a card that offers you good rewards, rebates, benefits on travel would comprise a good credit card deal. Sometimes the airlines themselves have their own credit card issuing company where you can get a good credit card deal.

Then there are the cards for particular stores. Say you shop at Target a lot. You will certainly get told that you can save 10% on your purchase that day if you open an account. It sounds good if you are making a big purchase that day, but do you really need a new card? And if you don't pay off the balance every month, what interest rate will you pay? These types of cards tend to have high interest rates.

A basic credit card from your local bank or credit union usually is a good credit card deal for anyone. You can still often get rewards for purchases, and the interest rate is lower. Don't forget, credit card companies are very smart. They know what you are likely to do with your new card, so they set it up so they make the money, not you.

A good credit card deal is really a relative term and there is no credit card deal which is equally good for all.

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Paul McDermott reveals more about his experience with good deals on credit cards and other personal finance lessons, some learned the hard way, at Debt Relief.