Searching through credit cards to find the best one for you can make you feel like you are running in circles. What you need to do first is decide what is important to you when shopping for a new card. After that, comparing cards becomes much easier.
The good news is truth in advertising. Credit card companies have to lay everything out for you to read. The bad news, the information is often in the fine print of the application. The main things to look at when comparing credit cards is the APR, any fees, and what the rewards breakdown is, if any.
This is probably the most straightforward thing you can compare between different credit cards. Just make sure you take into account any time limits on how long an introductory APR is good for. Six months, nine months, and even a year is fairly common. If possible, stay away from variable APRs; they do not really have any good to offer to the consumer.
Some credit cards still require you to pay an annual fee to use the card. Ouch. If your credit score is high enough that you do not need this, look for a card that you do not have to pay to use. Besides an annual usage fees, watch out for the following fees:
The balance transfer fee is what you need to pay if you are going to transfer an existing balance to a new credit card.
The late payment fee is what happens to the best of us when we forget to make a payment in time.
The rewards offers from various credit cards are probably the easiest area to get confused in. This is because credit card companies all of their own special way to reward the customer. You end up getting different points for how many pounds or Euros you spend. Then when you want to convert your points into cash, the conversion rates are different for each card (it seems).
The way to compare credit card offers is you’ll need to do a little math and actually multiply the “points rewarded” with the “”convert to cash” to find out how much cash you get back when you spend.
Another thing to look for is what limitations there may be on how you can cash in on the rewards. Do you get straight cash or can you only buy certain products online?