Special rates in credit cards are part of the deals offered by credit card companies to credit card holders. These special rates are offered both to existing credit card holders as well as to the new credit card customers. Existing credit card holders can compare credit cards for the best rates that are available for them. New credit card holders cannot compare credit cards if they have just one credit card from a single credit card company. But if they are not able to compare credit cards, they are still able to find credit card deals.
Credit card deals are offered to all card holders. Though there are categories amongst credit cards offered to different customers, one can find credit card deals available to all the categories, though some variation exists between them. One can also find credit card deals associated with various other service providers.
Special rates are offered to credit card holders so that they can maximize their purchases. It is basically to encourage people to take up card-based transactions rather than cash-based. The effective reason they offer is that carrying card is safer than carrying cash. There are of course risks associated with credit cards, but certain precautions can help prevent them from happening. But credit cards do score better when it comes to security, compared against cash. Even merchants in shops prefer to accept payments by credit cards because cash has to be maintained with some level of risk while the payments by credit cards are easily credited into the bank account of the merchant.
Credit card companies promote credit card based transactions among the credit card holders by offering the special rates. These special rates are discounts on certain purchases. In some cases, the credit card companies collaborate with merchants or product-based companies in issuing advertisements and offers based upon the use of the credit card while paying them. Discounts could possibly include a cash back offer.
If the customer uses the credit card to make a purchase of the specific product, then a certain percentage of the entire amount is credited back to the customer’s account as a cash payment. This is quite a lucrative offer for many customers and they feel motivate to buy the specific products for taking back a part of the payment into their accounts. Sometimes, discounts are directly associated with the products. The less amount is not credited into the account, but only the product is offered on a discounted rate and only the discounted amount is charged on the credit card.
Special rates could also include not just in the purchases made at the retail outlets; even transactions undertaken online can also be qualified to these discounts. Besides, transfer of balance amounts from one credit card to another for multi-credit card users is offered with special rates by the banks from time to time. If the credit card users find that they have to pay a higher amount of interest in one card, they can always transfer the balancing amount to another credit card from another credit card company, which is offering special rates on balance transfers.
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