0 Apr Transfer Fee Card

Comparing Credit Card Deals

Apr 4 2011

When you are thinking of applying for a new credit card, what exactly do you look for? This is an issue worth considering to make sure you get the best deal you possibly can and that you ultimately get a credit card that works for you. So, what should you look at when comparing different credit card deals? The first thing to consider is always what you are hoping to get out of your new credit card. For example, think about whether you would like to use it on a regular basis to pay bills and make other purchases, whether you plan to use it mainly on larger items or save it for emergencies. How you plan to use your card might affect the deals you look for. It’s also really important that you compare various APRs when choosing which card to apply for. The APR is the Annual Percentage Rate and, in short, gives you a snapshot view of how much the credit costs, which you can use to work out how much interest you’d have to pay. It’s a good idea to look at several different credit cards to compare the APRs available to you as this will help you decide whether or not you’re getting a good deal. Once you have looked at the APR on various credit cards, your next step is to compare the different deals available. This means digging a little bit deeper into particular cards to see what they offer. For example, one common offer you will find is credit cards with 0% interest . When you apply and are accepted for a new credit card with a provider such as Virgin Money, you will often benefit from a period where you are charged no interest on your purchases. This is very positive, especially if you pay off the balance on your card before the deal runs out as it can help you spread the cost of payments. Another common deal you should look for are 0% balance transfer cards . Again, these generally consist of a period following your acceptance onto the card where, if you transfer any outstanding balances across to your new card, you can do so without charge, which can help ease your transition onto your new credit card. Compare the lengths of these deals and see if they have any impact on the APR to decide which would be best for you. Another interesting point of comparison is the minimum payment amount on various credit cards. When you have a credit card, you are no doubt aware that one of the benefits is the ability to make a minimum payment each month, meaning that you can carry the rest of your balance across to the next month. Different card providers have different minimum payment levels and they can alter from time to time, so if you’re having trouble choosing a card, it’s worth looking at this in more detail. Of course, you should also compare the available credit limits. You’ll generally find that the higher your salary and, therefore, the lower your risk of defaulting on your payments, the higher your likely credit limit will be. Think carefully about how much you could afford each month and use this as a benchmark to compare different deals. Another thing to consider that often doesn’t get a huge amount of attention is how the interest is paid on your card. For example, if you pay your minimum amount each month, obviously only some of your purchases are going to be paid off. How does your credit card provider distribute that money? Virgin Money, for instance, pays off the purchases with the higher interest rates first, meaning that you’ll ultimately pay less interest overall. This is definitely something worth thinking about. One final thing to think about when comparing credit card deals is the other benefits you get with particular cards. As well as APRs, interest free and free balance transfer periods, it’s also worth considering any added extras that are available with your card as this might prove to be the tipping point if you are having trouble deciding. Think about, for example, how you would receive your credit card statements: online or through the post? Does your provider offer online accounts? Do they offer any other benefits, like the comprehensive package of discounts you can receive from Virgin Money? Do they have ethical choices such as charity cards?

Getting the Most Out of A 0% APR Balance Transfer Credit Card Deal ...

Do you remember balance transfer credit cards ?  We haven’t seen them around for quite some time, at least not in the numbers we had grown accustomed to prior to the recession.  Balance transfer offers were very popular a few years ago, when consumers routinely moved high interest balances to lower interest cards.  Depending on the deal, this strategy could potentially save hundreds if not thousands of dollar in interest charges annually.  Credit card holders may be able to reap the same rewards today with the return of balance transfer offers.  Here we look at what makes a balance transfer offer a good deal.

Low interest rate

Many consumers are struggling to pay off high interest credit card debt .  This process can take years if you are only able to make the minimum payment each month.  A balance transfer offer on a 0% APR credit card allows more of your payment to be applied toward your balance instead of interest charges.  Before considering a balance transfer offer, compare the introductory rate offered to the rates you are currently paying.  In addition, determine what the rate will default to once the introductory period expires.  If both rates are lower than your current rate, the balance transfer might