When it comes to choosing a credit card, it is easy to get overwhelmed by the numerous options being offered by many different providers. Knowing which is the right kind of credit card for you and working out which one has the best benefits overall is no easy task when wading through stacks of information booklets and pages online.
The process doesn’t have to be difficult, though, and there are a handful of things you should take into account and look for when carrying out your research. Obviously, it would be best to apply for credit card packages that come with low interest rates and affordable annual fees. That way, you will find paying back any overdrafts or money borrowed easier and are less likely to encounter problems or run up debt. Below are a few more tips to help you choose the right credit card that ticks all, or most, of the boxes.
As mentioned earlier, the lower the interest rate, often referred to as APR in documentation, the better. High interest rates can lead to all kinds of repayment problems. Look for a credit card and provider that is transparent about the APR rates and make sure they are clear about how variable they can be so you don’t get caught out down the line. A fixed-rate card is typically the safest option to go for in terms of knowing where you stand, as the interest rate is fixed unless you are late with payments, and the card company has to let you know if they are making any changes.
Many banks try and get extra money out of their customers through things like late fees, withdrawal charges and cash advances. Look out for this sort of thing, as it could cost you a lot of money. Some providers get away with charging customers extortionate amounts when they miss payments or are late. You don’t want to fall into their traps, as they are powerful and can keep charging you fines until they get full payment. All companies and cards will have some fees attached, so look out for the most reasonable on the market.
The credit card market is notoriously cut throat and competitive, which is bad news for the providers, but great news for you. They are all essentially fighting for your custom and will throw all sorts of great offers and incentives at you to try and get you to go with them. Take advantage of these offers and look for a good rewards programme and cash back systems to get the most out of your credit card.
There are many great deals and credit cards out there, and with a bit of research you will find one right for you in no time. Just be wary, keep your eyes open and always look out for sneaky small print before you sign up, and stick to reputable companies only.