Credit Card Comparisons - Choosing The Best Deal by:Joseph Kenny
With debt at an all time high, many of us will be looking to either transfer our
current credit card debt or apply for a new credit card with more benefits or lower interest rate. However, with a plethora of card offers out there, deciding which card, if any, is best for you can seem a little dauntingWhat follows are some useful tips and advice that hopefully will help your decision making a little easier and clearer.
Loyalty/bonus cards
As people's circumstances vary so do the credit card deals on offer. If you intend to clear your bill each month, the interest rate on your card becomes irrelevant as you won't have to pay it. Therefore you should consider going for a card that offers some form of loyalty bonus such as redeemable points, cash back or air miles.
Interest-free offers
These cards are particularly useful for those don't clear their balance each month. Shop around for cards that offer 0% interest on balance transfers and purchases. The length of these offers tend to vary, so choose one that is appropriate to you needs i.e. whether you intend to use the card mainly for purchases or a balance transfer.
Some cards allow you up to 59 days to pay for purchases before being charged interest on them, thus giving you some breathing space to pay for your goods or/and services.
Special offers
One way to save money on your card debt is to take advantage of the many debt-transfer offers available from most banks. These offers are usually exclusive to new customers and allow you to pay off your debt from a more expensive card at a lower rate for a limited period.
Cash
Although you can withdraw cash from ATM's with your credit card, it is best left as a last resort as, although convenient, you will pay for the privilege through a steep interest rate.
Plus points
Using the plastic to pay for expensive items such as jewellery, electrical goods or goods bought online, gives you the piece of mind of consumer protection i.e. under the Consumer Credit Act, the card company are liable (as is the seller of said goods or services) if there is a breach of contract.
This is especially handy if the goods either arrive faulty/damaged or don't arrive at all due to the supplier, for example, going bust. If any of these scenarios were to arise, you should have the money spent redeemed to your credit card.
Charges
Most cards will levy a charge against you if you fail to pay your monthly repayment on time, with penalties usually around 20. You will also incur a charge if you go over your set credit limit. Setting up a direct debit to make your monthly payment will eliminate the possibility of being late with your monthly payment and thus avoid that nasty charge.
What card then?
Deciding what credit card to apply for really depends on your personal circumstances and requirements.
If, for example, you intend to do some serious short-term shopping, a card that offers, say six month interest free on purchases, would be more suitable.
If you know in advance you will be unable to clear the balance in the short term, then a card that offers a low rate for the lifetime of the balance, would be suitable as you will save a great deal in interest payments compared with a card that resorts to a higher rate after any offers expire.
If you are able to clear your balance each month, then going for a card that offers rewards, such as cash back on purchases, would be most prudent.
About the author
Joseph Kenny is the webmaster of the UK credit card comparison site http://www.creditcards121.com/, where you can find a selection of credit card articles http://www.creditcards121.com/CaseStudies-FreeHelpandAdvice.htm. He also writes for the comparison site www.cardguide.co.uk which offers some best credit cards http://www.cardguide.co.uk/best_buys.html in the UK. Against The Top Down Approach To Picking Stocks by:Geoff Gannon Merit-Based Financial Aid - a Real Merit To Students by:Jakob Jelling Advantages of Attending a Liberty League International Training Event by:Brent Payne What Is A Wage Garnishment? by:Henry Byers Invoice Factoring As A Short-Term Cash Flow Solution by:Henry Byers Mistakes to Avoid When Applying for a Loan by:Rebecca Game Haunting Student Loan Debts by:Henry Byers Use Noncompete Agreements To Help Protect Your Business From by:Tim Knox The Business Autopsy: A Fact Of Life by:Tim Knox Win By A Nose, Lose By A Nose by:David. A. Goldsmith Learn The Tax Benefits Of A Flexible-Benefits Plan by:Jakob Jelling The Entrepreneur's Checklist by:Tim Knox Qualifying for a Poor Credit Business Loan by:Rebecca Game