Essential Tips On How To Compare Credit Cards
When it comes down to choosing a credit card for yourself, what's the best way to compare credit cards to ensure you're getting the one that's right for you? And what should you look for to make sure you're getting the best deal?
Here's a quick and dirty list of the top factors to consider when comparing credit cards:
Interest free credit on purchases: The longer a card gives you for interest free on purchases, the more time you have to pay it off and potentially save on fees. This is particularly important if you get paid monthly, but should definitely be one of the main considerations when comparing credit cards regardless of when, and how much, you get paid.
Approval Time: Some cards offer instant approval when applying online. This can be very handy if you're about to go on holidays and unexpected costs come up that you haven't factored into the equation.
Frequent Flyers: Frequent Flyer points are particularly important today, as airfares continue to drop and more and more people are travelling. Some cards will give you points towards a number of different airlines, others won't. The most important thing here is to make sure the card you select will give you points towards your preferred flyer.
Low Annual Fees: This is also an important consideration, as you don't want to get stung by a large fee at the beginning of each year. A number of credit cards have very low annual fees and, as we see competition heating up between banks, some are dropping them all together. If you're transferring credit cards from one bank to another it's always a good idea to see if they'll drop the fee altogether. They may do this if you can convince them it's the deciding factor between them and another bank.
Credit Card Limit: This should perhaps have been the first item on the list, as it will generally be the first consideration you'll want to look at. How much will they give me? Make sure that the limit you choose will work for you now, but also in the future. Remember that it's generally easy to increase your limit, but a lot harder to reduce it. It's always a good idea to start off with a lower limit if possible, particularly if you only want the card for a few purchases. Once the temptation is there to spend, it's often hard to resist and a maxed out credit card bill from a card with a high limit is never fun.
Credit Card Management: This is one that is becoming more important with time. The ease of management. Paying off the credit card, as well as checking statements. You should compare credit cards that have internet banking, iPhone applications, telephone banking and more and decide which one is going to be the easiest for you to manage. A hard to manage card means it'll be harder to pay off which means you'll get more fees!
Benefits and Rewards: The more platinum the credit cards you're comparing, the more benefits and rewards you'll generally get. Again make sure these benefits and rewards are right for you now, and in the future. Getting a credit card when you're 25 because it has, for example, cheap entry to a nightclub, is a very different benefit than you're going to want in ten years when you no longer go clubbing.
Here's a quick and dirty list of the top factors to consider when comparing credit cards:
Interest free credit on purchases: The longer a card gives you for interest free on purchases, the more time you have to pay it off and potentially save on fees. This is particularly important if you get paid monthly, but should definitely be one of the main considerations when comparing credit cards regardless of when, and how much, you get paid.
Approval Time: Some cards offer instant approval when applying online. This can be very handy if you're about to go on holidays and unexpected costs come up that you haven't factored into the equation.
Frequent Flyers: Frequent Flyer points are particularly important today, as airfares continue to drop and more and more people are travelling. Some cards will give you points towards a number of different airlines, others won't. The most important thing here is to make sure the card you select will give you points towards your preferred flyer.
Low Annual Fees: This is also an important consideration, as you don't want to get stung by a large fee at the beginning of each year. A number of credit cards have very low annual fees and, as we see competition heating up between banks, some are dropping them all together. If you're transferring credit cards from one bank to another it's always a good idea to see if they'll drop the fee altogether. They may do this if you can convince them it's the deciding factor between them and another bank.
Credit Card Limit: This should perhaps have been the first item on the list, as it will generally be the first consideration you'll want to look at. How much will they give me? Make sure that the limit you choose will work for you now, but also in the future. Remember that it's generally easy to increase your limit, but a lot harder to reduce it. It's always a good idea to start off with a lower limit if possible, particularly if you only want the card for a few purchases. Once the temptation is there to spend, it's often hard to resist and a maxed out credit card bill from a card with a high limit is never fun.
Credit Card Management: This is one that is becoming more important with time. The ease of management. Paying off the credit card, as well as checking statements. You should compare credit cards that have internet banking, iPhone applications, telephone banking and more and decide which one is going to be the easiest for you to manage. A hard to manage card means it'll be harder to pay off which means you'll get more fees!
Benefits and Rewards: The more platinum the credit cards you're comparing, the more benefits and rewards you'll generally get. Again make sure these benefits and rewards are right for you now, and in the future. Getting a credit card when you're 25 because it has, for example, cheap entry to a nightclub, is a very different benefit than you're going to want in ten years when you no longer go clubbing.
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