Best ways to Compare Credit Cards
Credit cards make all the payments easier for you. There are different types of credit cards with different features. Choosing one thus becomes difficult. With banks offering credit cards with lucrative features, a variety is available to choose from. Thus, if you have made up your mind to apply for the card then choose one after comparing them.
Compare them on the basis of the interest rate they carry, the rebates they offer, the fees attached to the services and other benefits which the cards offer. Let’s discuss them.
Interest rates
The annual percent rate is the yearly interest charged by the bank on the outstanding amount. Different banks offer different APR. Due to stiff competition in the market, APR level has fallen. The banks also apply compound interest rates on the outstanding balance after certain term.
Therefore, if you are applying for the credit card and manage to get hold of a card with lower APR then find out that the card does not have the condition of compound interest on the outstanding balance.
Rebates
These come in the form of cash back bonus. The banks make most of the profit with this feature. Every time you purchase, the bank earn. Because of this the banks are coming up with new rebate schemes to encourage the credit card holder to use the card for all the purchases. The rebates can go as high as five percent to six percent for some special purchase. These rebates are offered if you make purchases with approved merchandise stores and retail stores.
Other features
Other features include twenty four hours service and inquiry facility. Some cards offer insurance facility, very low or zero annual fees for the first twelve months and zero interest for first twelve months for purchase and/or balance transfers.
If you want the card for coin spread then look for the card with low fees on coin spread and low APR. If you make frequently air travels then look for the card which gives you the feature of rebate on travel. If you make all your payments timely and never keep those outstanding balances then opt for a card with cash back offers.
But before you get carried away with the features and rebates, read the prints on the application form and the brochures. The cards which come with attractive rebates and offers charge high interest rate and fees. Compare them on this ground.
Variety of cards are their in the market tailored for different lifestyles. Weigh your options and compare the cards before applying for one.
Tags: credit card offers, Credit Cards comparison, Interest rates