Credit Card Comparison : How To Pick the Best Credit Card For You
Choosing the best credit card for you is a very personal matter. While credit cards may look the same, they incorporate particular features designed to cater to different needs. There are a number of credit card comparison websites you can visit to learn more about the individual features of various credit cards.
Make a wise choice: how best to compare credit cards
Low interest credit cards
A credit card which attracts lower interest rate is the best credit card for those who do not pay off their balance in full each month. Since you expect to regularly carry a balance from one month to the next, you will want the lowest possible interest to be charged on that balance. In your credit card comparison process, make sure to take note of the time when interest charges begin. Some cards may charge interest immediately when you make your purchase; others may start on the cut-off date for issuing the statement. You will naturally want interest to start at a later date. Compare credit cards closely to save the most money.
Credit Card with interest-free period
The best credit card for those who do not carry their balances every month is one with an interest-free period, and the longer the better. When you do credit card comparison, you would notice that cards which feature interest-free periods are charging higher interest rates and impose annual fees (which normally vary from $30 to $80). However, the interest rates are not an important consideration in your case, because you will be paying off your balances before the interest will take effect. But remember the key is to pay the entire balance due on time; if you miss paying on due date, you will be slapped the higher interest rate.
The interest-free period offered by credit card companies in Australia is usually 55 days. This period has two parts. There is the 30-day period from one statement preparation date to the next cut-off date, and there is the 25-day lag between the current statement date and the date your payment is due. Note that if you make a purchase one day before the cut-off date, the transaction will be included in the preparation of the current statement, and you will have only 26 days without interest. Compare credit cards carefully to ensure you get the best deal.
Balance transfer credit card
If you are having trouble managing your account with one credit card, you might want the chance to start all over again. A card that gives you a low rate on balance transfers would be the best credit card to help you start afresh.You may get about six months extension to fully settle an existing balance transferred from a previous card. It is important to be resolute about paying off the transferred balance within the low-rate or 'introductory' period because a new interest rate will kick in afterwards, and this is usually higher than the standard rate on ordinary credit cards. In your credit card comparison exercise, compare closely the different rates for balance transfer and the normal rate after the promotional period.
Credit card with reward schemes
Reward credit cards may be suitable if you normally pay off all amounts due for the month and do not carry debt. You are willing to pay annual fees in exchange for the chance to ‘win’ some extra goodies. The best credit card for you in this situation is one that offers a reward scheme. Credit card comparison is crucial here because there is significant variation in the way the reward schemes are packaged. When you compare credit cards check how many points you get for every dollar of spending and, more important, find out the number of points needed for you to qualify for the reward you want to enjoy. Some cards may require you to spend a small fortune before you get what you want so compare credit card options carefully before choosing. Also, make sure to compare the annual fees: cards with rewards usually come with higher annual fees than ordinary cards.
Credit card fees and charges - the key to wise credit card comparison
Regardless of your choice for the best credit card for your buying and paying behaviour, remember that there are fees and charges you will incur for certain lapses if you do not manage your account well. This refers to late payment charge, over-the-limit fee, cash advance fee and the like. When choosing a card, make sure you thoroughly compare all credit card options and remember what features you choose- make sure you use your credit card and pay the statements accordingly.
