10.2 Comparing credit cards

One of the most important things to consider when you compare credit cards, and any other financial products for that matter, is that comparison only works if you compare like-for-like.

Before you think about comparing credit cards you will no doubt have a clear idea in your mind of what you need from your credit card. The idea of this purpose will be the key tool you need when you start your comparison. Below are some of the main reasons you may need a credit card.

Reasons to need a credit card

• Reduce cost of borrowing
• Borrow money/make a one-off large purchase
• Build/improve credit score
• Convenience/added protection
• Help a cause

Let’s say for example that you already have existing credit card debt being charged at a standard APR of around 15.9%. Your main purpose will be to reduce the cost of your borrowing and you will therefore need to concentrate your attention on credit cards offering an interest-free period on balance transfers.

Once you have reached this stage, you will then need to consider how you are going to pick one credit card from the large selection of interest free balance transfer cards available.

The most obvious criteria will be the length of the interest free period, and by using this you can probably narrow down the choice to the 3 or 4 cards with the longest 0% offers. However, while you are going through the process of elimination bear in mind the acceptance criteria of each card because it is pointless shortlisting a card to your final 3 or 4 if you won’t be accepted for it.

Once you have 3 or 4 cards shortlisted your comparison will become slightly trickier because you will have to consider other less obvious factors in order to find the best credit card deal, such as admin fees and minimum repayments.

When you get to this stage, you can use our Balance Transfer Calculator to help you work out which card will save you the most money during the interest free period and our Credit Card Reviews section to see how other people have rated the card.

When you have all of this information you will be set to decide which card you want to apply for.

Back to Guide to Credit Cards Contents
 

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Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.

Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.