Choosing the Best Credit Card
With so many credit cards available on the market these days and most people having at least one it can be easy to just stick to the one you have or use the one offered by the bank that you are currently with. However, there are big differences between credit cards and it is worth doing some research to make sure that you are using the one that is the best suited to you and the way that you spend. Whether you are taking out a new or additional card or thinking of changing yours, it is worth taking some time to consider which might be the best.
If you tend to have an outstanding balance on your credit card then you will need one that has a low interest rate. You will be paying interest on your outstanding balance and this can add up to a lot and so it is important to make sure that you minimise these costs by getting a card with a low interest rate. It could be worth swapping to one with 0% for balance transfers but watch it because the variable interest, which you will pay after the interest free period, could be higher than that on other cards.
Some people use their credit cards to buy all of their monthly shopping on and then pay it off in full at the end of that month. The best way to make the most of this sort of card is to get one with no fee and that has cash back. You will find that the interest rate is likely to be higher on this type of card, but if you always pay it back in full then this is not important as it will never be relevant.
Cash back cards do vary but they normally give you a certain percentage of your spending back as a credit to the card the following month. Some accumulate air miles which may or may not be more useful to you.
Some cards offer a free borrowing period, perhaps for six, nine or twelve months. These can be extremely useful if you want to buy something you cannot yet afford but you can afford in a few months time. Using this card will allow you to have the item immediately but not have to pay for it all straight away. Just be sure that there are no hidden costs and that you pay it all back before the deadline or else the interest might be extremely high.
It is worth reviewing your credit card every few years to check that you have got the best one for you. It is possible that your needs may change and it is very likely that there will be different cards available, some of which might offer you a better deal than the one you are currently using. Changing credit cards may seem like a hassle, especially having to do all of the research first, but it can lead to significant savings.