Credit cards can vary quite a bit, but once we have one we may just stick with it and if choosing one, we may just go for one provided by our main bank. However, as they vary so much it is worth comparing the different types to see which might be the most suitable for you. They tend to have different features as well as costing different amounts and so you will need to think about what you need in a credit card.
Many people will think of the interest rate as the most important feature of a credit card. While it can be useful, it is worth realising that the interest rate can change and while you may have pocked the lowest interest rate as it stands on one particular day; these can change though and so while it is good at the moment, this may not last. Therefore although knowing how the interest compares to other cards right now is important and some indication of how things may stand in the future it is no guarantee that this will always remain the one with the lowest interest. While you might keep checking and switch cards to the lowest interest card each time there are changes, it is more likely that once you get a card you will tend to stick with it for a significant period of time.
It is also important to note that as well as interest being charged on the card, there may also be fees as well. Normally if you repay the minimum charge you will just have to pay interest but if you do not make that minimum payment on time there could be a charge. If you with draw cash using the credit card or use the card abroad there may also be charges as well. It is important to be aware of all of the possible charges that could be made so that you can compare the cards.
A cashback card could be of interest to some people. These will give you a credit to your card balance, usually monthly, which is a percentage of the amount spent on the card the following month. While the cashback percentages are usually very low, they can still be better than getting nothing at all. However, it is often the case that the cards that offer this cashback have a higher interest rate compared with cards that do not offer cashback. This means that if you do not pay off the outstanding balance each month you will be charged interest at a higher rate on a cash back card than a normal card. This means that the even with the cashback, this type of card could end up costing you more money. Therefore it is really important to make sure that if you do go for a cashback card, that you are confident you will be able to make the repayments in full.
It is also important to make sure that the credit card will be accepted at all of the places that you want to use it. Mastercard and Visa tend to be accepted at most but American Express is more limited in where you can use it as are some other cards. This means that you do need to be careful with which to choose. With regards to the bank that issues the card, this tends to be of little importance and so it is up to you to choose one that you think will suit you.
Reputation of Lender
You may be keen to pick a no credit check lender that has a good reputation. You may have a favourite already or want to find out more about them before you choose. You might be looking out for customer service and hope that you can find one that is good in this aspect or one that you feel treats customers more fairly. It might simply be that you want one that you have heard of or that your friends and family speak highly of. It is good to think about what you think might make a good credit card company and whether the companies that you have come across fit the bill.
Often when you are repaying the balance back in full the choice of lender makes very little difference to anything apart from cashback. If you can get some cash back but pay out nothing to the lender then this can be a great deal. However, if you are not paying the full balance back each month then interest rate is much more important. You might want to make sure that the lender provides good customer service as well because you might want some help or flexibility in making your repayments.
Finding out what a lender is like is not always easy if you gave not used them before. As mentioned before you may ask friends and family for advice on whether they would recommend the lender that they use or not. You may be able to make a choice based on that, or you might want to spend some more time finding out information. There will be lots of information online, lots of people will have opinions. It is therefore worth looking at reputable websites so that you know that you are making a decision based on solid information. Do not just look at rating or rankings but find out the reasons why. This is because you need to make sure that the reason they are ranked high or low is relevant to you. People have lots of different reasons for liking or hating a lender and you will also have features that are important and ones that are not important to you as well as things that you do not feel that strongly about either way.
There are many different factors that you need to consider when you are choosing a credit card. It is an important decision as you may be using that card for a long time and you want to make sure that it is the best one for you. Cost could very well be a very important feature when you are comparing the cards but you also need to consider other aspects as well, partly because some cards may have similar costs and you need to differentiate between them or because other features have some bearing as well.