Credit Cards will help Purchase a New Car - Articles

When you are looking at applying for a new car reward credit card, you are barraged with ads that promise the moon and stars for rewards. All of the offers seem appealing, but there is a lot to consider when choosing a car reward credit card from the onslaught of ads that you will encounter. There are cards that will offer you points for shopping at a specific manufacturer, credit cards that offer points for manufacturer parts purchases and credit card offers that afford points for gasoline purchases. So, which one is right for you?

If you plan to purchase a specific type of vehicle, such as a GM for example, there are car reward credit cards that offer you points for every dollar you spend on a GM vehicle, parts or service. If you own, or plan to own a GM vehicle, then one of these cards is right up your alley. Not only can you shop knowing you are protected by the MasterCard® or Visa® symbol, you can also get rewards for purchases you need to make for your vehicle.

There are a variety of Chase auto rewards credit cards available, such as the GM Business Card from Chase and the Volkswagen Platinum Visa® card with Rewards. The GM Business Card from Chase offers three per cent earnings on fuel purchases, restaurants, office supply stores and authorized GM dealers on parts and service, as well as one per cent earnings on all other purchases. When you purchase or lease a GM vehicle, you get a $600 statement credit with the program. The Volkswagen Platinum Visa® card with Rewards offers two points for every dollar you spend on VW purchases and one point on other purchases to redeem for VW cars, gear, and service as well as other rewards.

Those examples are indicative of the rewards you can expect from many of the credit card offers provided from any number of banks and institutions. The primary decision you have to make is about the type of car rewards credit card you want, and what will suit your needs the best. There's no rhyme or reason to take a credit card with a rewards program that you have no use for. If you would never purchase a VW vehicle or have any use for their gear, then it would be silly for you to apply for and use a VW car rewards credit card.

Take a look at the vehicle you drive and search for a car reward credit card that would suit your needs. If you own a GM, search for a GM car reward credit card, a Ford-a Ford car reward credit card. You have to be able to use and make use of the rewards that you receive for using the credit card, so finding one that suits your needs is the key.

Once you have narrowed the field down to a few choices, you should compare the offers. There's always fine print with a credit card and you should read all of it and consider it.

So, what should you consider if you are looking for a car reward credit card?

Start with the APR (annual percentage rate) and compare them from card to card. Many car reward credit cards offer a special, lower introductory APR for a period of time. It's the long term APR that you really want to consider, as it will have the most impact on your spending.

Annual fees are next on the list-many car reward credit cards don't have any annual fees while others do. If there is an exceptionally low APR, then chances are there is an annual fee to pay. You have to weigh the difference, APR versus the annual fee to decide if the annual fee is worth the lower APR (and most often it is).

Finally, look at the rewards program. Ask yourself if the rewards that are offered with the car reward credit card are rewards that you would be interested in. When the answer is no, look at a different card. When the answer is yes, then look at the complexities of the reward program. Find out how many points are offered and when they are offered. If you get three times the points for shopping at a specific chain store and you have never shopped there, it's not a good reward program for you. You also need to look at if and when the points expire, how often you can use them and if there are any limits or exceptions to the rewards program or redeeming points.

Once you have looked at all of the cards that fit your profile, compare them and figure out which card is the best for you while looking past the flashing ads and 'great deals'. The best car reward credit card is the one that will suit your needs best.