How to Compare Credit Cards
Choosing the best credit card is not as easy as it seems. There are many types of credit cards on the market and each one has different features, such as its interest rate and credit limit.
When shopping around for the best credit card, make sure you consider the fixed interest rate, the annual percentage rate (APR), annual fees, member benefits, rewards and other services.
The first step in choosing a credit card is to determine what your financial needs and goals are. If you are going to pay your entire credit card balance each month on time, then you should opt for a credit card with no annual fees instead of one with low interest rates.
Statistics show that most people don't pay off their credit cards in full and on time every month. A low interest credit card is ideal for those who are occasionally late. There is a significant financial difference between a low 10% APR credit card interest rate and a card with higher interest rates.
There are several factors that should be taken into account when comparing credit cards. In addition to annual fees and low interest rates, customers should consider cash back programs, rewards and other member benefits. Some financial institutions offer discounts and membership rewards to those who use their credit cards when shopping online or in-store. With frequent flyer cards, customers may also receive airline mileage credits.
Some credit cards give you cash back or credit for the purchases you make with that card. Capital One credit cards and Discover credit cards are some of the most popular cash back credit cards on the market. You may also receive credit towards additional purchases.
When comparing credit cards, you should also consider the type of credit needed for approval, online account management services, payment plans, billing services, unauthorized spending protection and membership benefits, such as baggage protection and travel insurance.
Make sure you ask how potential rewards programs are structured. Membership fees and interest rates should also be considered.
For more information on credit cards and related topics, please see our Credit Card Tips & Advice.
To apply for a credit card that fits your needs, please visit us at CreditCardXPO.com.
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Please note your financial situation is unique and our tips & advice presented here may not be appropriate for your situation. CreditCardXPO.com recommends that you seek different advice & opinions from your own accountant or financial adviser who understands your individual circumstances before making any important decisions or implementing any financial strategy.
Tips & Advice
- APR - Annual Percentage Rate, the yearly percentage rate charged when a balance is held on a credit card.
- Intro APR - A low interest rate offered for a limited time, usually for the first 6 to 12 months.
- Balance Transfer - The act of transferring the whole or partial balance of one card to another card.
- Annual Fee - An annual (yearly) fee associated with having a credit card.