Friday, November 8, 2013

The Right Credit Card for You

Finding your way through the range of credit cards available these days can be daunting, but there are points to remember that will help when it comes to the final decision. Researching your options before signing the application is the key to finding the right credit card to suit your needs.

Use online credit card comparison sites
Using online credit card comparison sites is one of the best ways to find the right card and save money. Comparison sites can tailor credit card choices to your specific requirements whether you wish to transfer a balance or are looking for the lowest interest rates. Always remember to check more than one comparison site; they will not contain every lender on the market and using two or more sites will widen the search. Don’t forget to check out the credit card offers on the high street or through your own bank and look out for those introductory credit card deals for new customers.

Interest rates are important
The annual percentage rate (APR) you receive will be one of the deciding factors towards how much your credit card is going to cost over the long term. A low APR is always desirable and 0% interest rates may look like the best deal but always read the small print. Most lenders will only offer 0% interest rates for a specified amount of time and if you break the terms and conditions then the higher interest rate will kick in. If you are someone who finds it difficult to repay your balance on time, every month, low interest credit cards might not be the best option.

Rewards when using credit cards
Most lenders will use some sort of incentive with credit cards to new customers whether it’s shopping points or cashback rewards. Again, these rewards can be a good deal if you stick to the terms and repay on time each month. Never choose a credit card solely on the rewards offered, always use the APR as the deciding factor. If you are looking to transfer an account balance onto a new credit card then research introductory offers such as 0% balance transfer offers. The best deals for balance transfers will come with extended 0% lifespans of around one year to 18 months.

One of the golden rules when researching new credit cards is to never complete an application until you have decided on the right credit card. Multiple applications will leave a footprint on your credit reference and this will be a warning sign to lenders, which could influence their lending decision.

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