When choosing the right card for you, it's important to contrast and compare different cards so that you can find your perfect match. When you compare credit cards, it's good to make a list firstly of what you want from your card and why. Some people will make a list based on the fact that they've already got a credit card and want to transfer the balance over to a different provider, whereas others will have a poor credit history and will need to look into cards designed for bad credit that will suit them the best. Usually the main things to look out for when you compare a credit card to other are:
- Balance transfer rate
- Purchase rate
- Typical APR (variable)
Once you have looked at these three aspects, you will be able to think about the rewards you would like to gain from a lender. If you have a good credit rating, there are plenty of great deals on offer from lenders including donations to your favourite charities as you buy everyday items; cashback on all of your purchases in an annual lump sum; Airmiles that will guarantee discounts on your purchases, and even money back on your grocery shopping and fuel. After this, you compare the extent to which these rewards are offered, and how long the deals last if they are temporary. Your card could even come with complimentary travel insurance when you book a holiday.
You should also take the time to look at your credit rating, and, if you have a poor credit history, you should compare bad credit credit cards to see which services have the lowest interest. Remember applying for a card with numerous perks if you have CCJs or even IVAs may backfire, worsening your rating in the process.
By taking into consideration the amount you spend each month on your credit cards, you will also be able to compare the limits on the different cards you are interested in. After all, if you spend £4,000 per month on a card, opting for an account with a £1,500 wouldn't be suitable.
Even though it can be exciting to compare the newest rewards on offer, you should remember that savings you make in one area could be balanced by added cost in another. If you are considering a charity card, but the interest rate is considerably higher than alternatives, it could be better to go for a lower-interest card and donate the money you save in person.
Credit card comparison websites are most probably the best way to compare credit cards. They will allow you to compare credit cards quickly based on your individual requirements and will have different cards and promotional offers grouped into categories which will make credit card comparison simple.