When comparing credit cards you should first try to narrow down your selection by the type of card you need. Below are the main credit card types available together with a brief summary as to what they are designed to do. For a full comparison, visit the PocketRate.com website to compare credit cards, features, benefits and to submit your credit card application online.
You earn hard cash each time you spend using the card, usually a percentage of the amount spent. This cash is then credited to your credit card statement.
Look out for introductory offers that give you an even higher percentage of cashback for a period of time after first having the card.
These cards enable you to transfer an existing credit card debt to a new card with a new provider. The advantage of doing this is that you are avoiding paying interest on the outstanding amount for the 0% introductory period.
However, be sure to pay off the amount before the period ends as you will start paying interest again.
These cards offer an introductory period where you will pay 0% interest on any new items purchased. They are useful when buying big-ticket items like expensive electrical goods, furniture etc. They enable you to effectively pay off the amount in instalments at 0% interest rate.
However, ensure you clear the balance before the 0% introductory period ends as you will start paying interest on the outstanding amount.
These cards give your rewards each time you spend using the card. Rewards may come in the form of points or air miles that can be redeemed for tickets or money off your shopping.
Other types of rewards could include discounts and vouchers. You can usually keep track of your rewards online with the credit card provider. You should remember that some rewards may have an expiration date so be sure to use them.
If you have poor, little or no credit history, then getting a loan, mortgage or normal credit card may prove difficult. Credit Builder or Building cards enable people in these situations to have a small line of credit.
The idea is that you pay off the full amount each month and in so doing, you start to build up a good credit score and a good credit history. These cards usually have more relaxed application criteria but often have a much higher interest rate, so be sure to always pay off the outstanding amount each month in full.
About the Author
Andrew Bowen is the CEO of PocketRate, a UK based finance comparison website.
