Low Interest No Fee Balance Transfer Card

7 Factors To Consider When Comparing Credit Cards | Australian ...

1. Fees

Annual fees for your credit cards are usually charged to the card at the end of the year. The amount of your annual fee depends on the perks you get. For instance, if you travel a lot, you may want a charge card with an airline that gives you frequent flyer miles. That card will have a higher annual fee than a no frills card. It also may have a higher interest rate. Do the math, and see if the fees and interest will be less than the benefits you receive.

There are basically 3 different annual percentage interest rates (APR) on your credit card: balance transfers, new purchases, and cash advances. The advertised interest rates are going to be the lowest and it’s usually for balance transfers for a limited time. Don’t get a credit card because it advertises 0% interest, charge a lot on it, and then realize that the new purchase interest rate is 19.5%.

Cash advances carry the highest interest, and move to the bottom of your credit card balance, so they’re the last to be paid off. When you compare credit cards, you’ll also find that some of them charge you more interest if you have a smaller balance. This is so they’ll still make money, even when you don’t charge very often.

Each credit card will have either a variable or a fixed rate APR. If it’s variable, it will float around along with market interest rates. If it’s fixed, it will stay the same until you change it.

Some credit card have generous grace periods, which are interest free periods in which you can pay off your card before it starts collecting interest.

Don’t be duped by extravagant rewards on your card. Compare the rewards against your interest rates, annual fees, and your grace period. You may find that you can afford a holiday if you aren’t paying to get rewards.

If you think you may be late now and then making your payment, be leery of getting a card at all. If the card is one day late, you’ll be charged a penalty, and your interest, fixed or not, will skyrocket.

There are credit cards geared toward certain groups and their specific needs. A wealthy businessman will pay higher fees, but have a higher credit limit than a college student.

Finally, all good things come to an end. Your introductory offers will end, as will your rewards points. When you’re comparing credit cards, determine their end game.