Save money with the best credit cards
We all know that credit card interest rates can vary greatly, so whether you’re considering switching your card or applying for your first one, it’s well worth shopping around to make sure you get the best possible deal for your money. There are other factors to consider as well as interest rate though, so why not take a few minutes to read our handy guide to credit cards to see which one is right for you!
Choosing the right card
Your bank may offer credit cards with a competitive interest rate, or you may decide to head online and use a comparison website to compare the benefits on offer. Here are a few of the things to consider when looking at credit cards:
• Interest rate
• Monthly fee
• Special offers for example 0% on purchases or balance transfers for 12 months
• How will you use your card?
• Are you transferring a balance from an existing card?
It’s a good idea to see whether there are any special offers available for the credit cards of your choice – for example, some cards allow you to collect Nectar or Tesco Clubcard points on your purchases. There are even credit cards which use contactless technology, which is a handy feature.
Compare and contrast
By using a comparison website such as Moneysupermarket.com, you can see at a glance which credit cards offer the best deal. Don’t automatically be tempted to choose the card with the lowest interest rate as there are other factors to take into consideration too. You should think about how you’ll use the card – for example whether it will be for balance transfer or purchases. It’s also important to bear in mind that if this is your first credit card, or if you have a poor credit history, you may be offered a lower credit limit than you were expecting.
Comparison websites usually allow you to click straight through to the credit card company’s site where you can apply directly. Make sure that you don’t apply for more than one credit card at once, as every application leaves a ‘footprint’ on your credit record which lenders can see. If you’ve applied to several lenders and been turned down, this could be viewed negatively.
Take the time to shop around for credit cards and ensure that you get the best possible deal. There’s no point in taking out a credit card with a high interest rate on purchases if you’re planning on using it for shopping, as you will pay the credit card company more in the long run. By ensuring you choose the right card for you, you’ll cut your interest and monthly repayments, meaning you can pay off your card sooner!
The information on this page is designed to help you understand more and make more informed choices. We do not receive any commissions, instead we are funded from companies that we advertise on our website.