|
||||||||||
Customizable credit cards sound like a consumer’s dream come true: a credit card that allows cardholders to pick and choose among the features they prefer. A 0 percent APR balance transfer rate, no annual fee, great tailor-made rewards, and so on; the list of benefits to pick and choose among is long.
Unfortunately, however, while customizable cards can be anything you want them to be, they can’t be everything you want them to be; for every feature added on, there’s a compromise to be made, usually in the form of a feature that has to be given up.
For example, people applying for a credit card using Discover’s Cardbuilder will find that if they want the best long-term low APR, they’ll have to carve months off their 0 percent APR intro offer. Add a rewards feature like getting interest back for paying on time, and that 0 percent promotional APR may jump to 3.99 percent—or higher, depending on the applicant’s credit history. And, those who qualify for the lowest-of-the low long term APRs, i.e. 9.99 percent, will find that they no longer can get that attractive 0 percent APR introductory offer.
Despite the trade offs though, customizable cards still offer consumers something of unique value: choice. Although the combined options cardholders can expect on customizable cards may not be any “better” than those the card companies issue en masse, a card with hand-picked features is nonetheless tailored specifically to the cardholder’s personal needs and preferences. And in today’s economic environment, there are few things more important to many consumers than the feeling that they are in command of their finances in general and credit cards in particular.
So should you look into getting a customizable card? Yes, if you know what you are looking for, and if that feature is available through customization. For cardholders who don’t know what they want, the customization options can be overwhelming. While choice is a good thing, too much of a good thing is not. According to some psychologists, when overwhelmed with too many options, the human mind gravitates to either a default option or the option that seems most familiar—whether it’s the best choice or not.
If you do decide to apply for a customizable credit card, it pays off to shop around. Card issuers offer different kinds of customization options. Discover Card offers customizable credit cards, which enable credit card applicants to choose among different card terms. Citigroup, on the other hand, is offering customizable balance transfer promotions for select cardholders to choose among.
More recently, American Express has introduced a new customizable rewards charge card, Zync. While Zync comes with a set annual fee (and no APR, since as a charge card, the balance must be paid in full each month), the card allows cardholders to add on additional reward “packs” for additional yearly fees. Each rewards pack offers the cardholder double rewards points in specific purchase categories, such as restaurants, travel, or shopping. The reward packs generally cost between $20 and $25 extra in annual fees, with the exception of the “Eco Pack” (for purchases with “green” merchants), which comes free. For cardholders with high expenditures in a particular purchase category, Zync may offer a great way to double rewards earnings.
For consumers interested in trading card benefits for the terms they want or paying for lifestyle-specific rewards bonuses, customizable credit cards offer cardholders the chance to hand-pick the terms of their card. Customizable credit cards are also a great way to get familiar with the trade-offs that all credit cards have, while tailoring those trade-offs to your unique situation. For best benefits when applying for a customizable credit card, however, spend some time to think through which terms would best fit your lifestyle and spending habits and maximize the benefits of the card.
