Credit Card Comparison Guide
With the credit crunch in full force, thousands of people are having to turn to
their credit cards just to make ends meet. If you are thinking of getting a new
credit card or want to take advantage of the various balance transfer deals that
are currently on offer then you need to shop around and compare the market. Below
are a few things to think about when comparing the various credit cards.
The length of the 0% interest period
Not all credit card lenders offer this discount period but if they do then it is
worth looking at. Any money transferred onto the new card from an existing card
benefits from an Annual Percentage Rate (APR) of 0% for a fixed period. The length
of this period varies dramatically though. Some credit card companies only offer
3 months at 0% interest whereas others give anything up to 18 months. This means
that you can use the balance to pay off your overdraft or loan and not get charged
interest.
The Typical APR for purchases
Once the interest free period is over your credit card account will revert back
to the standard or typical APR. Again, this can vary considerably from one lender
to another. At present the APR for purchases on most cards ranges from around 17%
up to 25% and choosing a card with a high typical APR can make a huge difference
to your credit card repayments.
The Typical APR on Other Types of Usage
A card that has a low interest rate for purchases doesn�t necessarily mean it�s
a good card to choose. You also need to take into consideration the cash advance
fees, the foreign exchange fees when using the card abroad and any withdrawal fees
that come with using ATM machines. These can easily cancel out the savings you make
by having a low rate of interest on purchases and they do need to be compared carefully.
Additional Benefits
Because of the stiff competition that exists in the credit card market, most lenders
have a range of additional benefits on offer. These can include airmiles, points,
Cashback and a few other clever promotions. It is important not to be swayed by
the lure of bonus points when you use the card or Cashback whenever you make a purchase.
These offers are great additions but they are not a priority when choosing a credit
card.
Prepaid Credit Cards
This type of credit card is worth a mention even though it isn�t a credit card in
the normal sense. Prepaid credit cards require you to �load� the card with money
from a bank account which can then be spent as normal. The benefit is that you can�t
get into debt however they still tend to offer some of the same additional benefits
as regular credit cards. If you continually find yourself in debt with your credit
card then this type of card is worth comparing and looking at more closely.