Excellent Credit Deserves an Excellent Card (FORBES)   Leave a comment

Excellent Credit Deserves an Excellent Card

NEW YORK - MAY 20:  In this photo illustration...Image by Getty Images via @daylife

You handle your credit with care: you have an excellent credit score, and have a long, proud history of timely debt repayment. Most likely you are bombarded with credit card deals on a weekly basis, these annoyances stuffed into your mailbox and clogging up your email’s junk folder. For the most part, these constant offers go unnoticed; if you are happy with the cards that you currently carry, why complicate your life with more paperwork?

While keeping things simple is not a bad option, you just might be missing out on some first-rate credit card offers.

Not all credit cards are created equal, especially if you have excellent credit. Citi Diamond, Discover More, and Capital One Platinum Prestige are credit cards for excellent credit holders, and they come with their own sets of benefits. Higher credit limits are practically guaranteed on these cards. Additional fees are also rare on these high-end credit cards. Typically there are neither annual fees nor fees for extra cards.

The majority of these cards offer a 0% balance transfer as well as a 0% introductory APR for a limited time. When the introductory rate expires, these cards usually will offer a relatively low APR somewhere between 11.99% – 20.99%. The interest rate following the promotion will be based on your credit worthiness.

Better reward programs are also common to these credit cards, with some offering a super-generous 5% cash back on certain purchases. There is often a wider breadth of what qualifies for reward points. Everything from travel to home improvement can earn you some cash back on your purchases.

When applying for these cards, the lender will take several aspects of your financial picture into consideration. Firstly, your credit score is the biggest influencing factor. A score within the range of 750 to 850 will most likely lead to an approval. Other considerations will be your income vs. your credit, any judgments that may have been imposed against you and even your address history will come into play. These are basic considerations that go into the overall makeup of your credit score, but some banks will also focus in on some aspect or other they feel particularly indicative of risk. So if you’ve worked hard to get and keep a good credit score, maybe it’s time to consider these elite cards, and reap some rewards for all your vigilance.

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Posted July 26, 2011 by ilanamelissagreene in Uncategorized

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