By David
How to compare credit cards when you have so many options and confusing jargons to deal with. With so many different and varied types of credit cards available today, it is a wonder that anyone can find one that is right for them. In fact, the list of possible cards is so massive that to attempt to compare cards in just a few pages would be absurd. In recognition of this fact it seems more sensible to show you, our readers how to go about comparing credit cards so you can find one that is a good fit for you.
Types of credit cards
1) Prepaid Cards – A prepaid credit card varies somewhat from other credit cards in that you pay it before making purchases rather than after. Because this makes you the lender there is no interest for its use and it does nothing to build your credit. However these cards have all the security of a normal credit card and a spending limit set by how much you pay into them, making them a great option for online shopping.
2) Low-Interest Cards – A low-interest credit card works in much the same way as a standard card except that it has a lower than average interest rate (usually around 10.4%). These cards are great for balance transfers from higher interest cards and for using as a means to paying for something large in an emergency.
3) Rewards Cards – As you compare card you’ll want to check out the rewards cards that are available. These cards, though they have a higher APR (annual percentage rate) than a low-interest card, offer extra perks like frequent flyers miles or cash back just for using them. They are great to use for everyday purchases so long as you pay them off before the end of the grace period allowing you to reap the rewards interest free.
4) High-Interest Cards – These cards are designed as a way for those with bad or no credit to start making some positive inroads. They have higher than average APR and low credit limits. It’s best to go with this type of card only if you’re trying to build or repair your credit.
Interest Rates
Once you compare card types you’ll want to take a look at the APR of your front runners. Obviously you’ll want the lowest possible APR you can find to make certain that you are not paying more on your purchases than you have to.
Introductory rates and fees
The final consideration is going to be the introductory program (if there is one at all) and any fees attached to the cards use. Introductory programs can be nice, but the APR you ultimately end up with should be of greater concern. Similarly while certain rewards or a low continual APR can be tempting, they are sometimes not worth an annual fee, when other cards are just as good and do not have the associated fees.
Now that you have an idea what to look out for, you now know how to compare credit cards and come up with the ones that are right for you.
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