Published on 05/24/2008

Credit card companies are not, quite often, the most ethical of corporations. While this may not surprise you, the marketing genius inherent in the credit card industry may. Credit cards are big business, and as such, they work hard to entice you to carry and use their credit cards. Moreover, they would really prefer you carry a balance on that card, so interest charges accrue. What are some of the marketing strategies credit card companies use to entice you? How can you filter through these offers to choose a credit card that is right for you, if you choose to carry one?

Gimmicks Credit Card Companies Use

Obviously today's main marketing gimmick is that a given credit card company offers a card that will save you money. Rewards cards are one of these marketing tools, as are balance transfers. A rewards card can, in fact, be a good choice, if you have the self control and willingness to pay it off in full monthly. Balance transfers, if the offer is good, can also allow you to lower your interest on a credit card balance if you are working to reduce or eliminate your debt. A low or no interest introductory APR can also be a good marketing tool. Again, be aware of your usage of the card, and remember when you should have it repaid to avoid incurring more interest than you expect or are prepared for. These marketing ploys can all be good, for individuals capable of smart credit card usage. If you have poor spending habits, keep in mind that even good marketing strategies may leave you incurring additional debt that you will struggle to repay.

While these marketing strategies are logical, including offering more for the customer, cash or goods back, and a way to save on your interest fees, some credit card companies rely on less practical marketing options. You may also be able to choose a credit card that offers special benefits at a favorite store, or a kickback to a charity of your choice. While that MasterCard or Visa offering store based rewards may be tempting, keep in mind that higher interest rates are common with these cards. You may also be offered a keychain sized credit card to speed swiping. Be aware that these cards may put you at higher risk of credit card number theft.

More and more credit card companies are now offering customized cards, ranging from great master paintings to an upload your own image option. Some may even put your photo on your credit card, providing some additional protection against theft. Additional identity theft protection services are available with some credit cards.

When shopping for a credit card to use, keep your eye on the broader picture and be sure that you know your interest rate, possible annual fees and other costs. This big picture is the critical question when choosing a credit card. Rewards plans often actually only offer a very small return on the amount charged, and that great introductory offer may be followed up with a much higher long term rate. Do be certain to always pay all bills in a timely manner to avoid additional charges and the possibility of an interest rate increase.