How to compare credit card rates

Regardless of whether you're looking for a low fee card, zero percent APR balance transfer cards or credit cards with rewards, your credit rating will heavily influence your chances of getting approval. If you do have a good credit, it's worth knowing how to compare credit card rates so that you can save money. Read on the following article to know more on how to compare credit card rates.

Comparing credit card rates

Price comparison sites You can go into your bank or visit each financial institution in turn, but this is extremely time-consuming. However, you can use a comparison site, such as Moneysupermarket.com or Comparethemarket.com, to trawl through the many different deals and find the lowest rate card based on your credit profile. It's quicker and more efficient. Introductory offers Comparison sites tend to focus on the headline rate of interest and introductory rates, but is this the most important consideration? Much depends on the way that you manage credit and whether you tend to carry forward your balance. Credit card rewards If you're the sort of person who clears his balance each month, you're unlikely to benefit from a zero percent balance transfer. You're likely to find credit cards with rewards that are preferred. You can earn cashback, store rewards or airmiles on your purchases. Charges and fees If you've been able to successfully apply for a card, the chances are that you're the sort of person who doesn't pay too many fees. However, you may wish to target cards that don't impose an annual fee. This could save you up to £35 per year.

Important considerations

Too many credit applications Only apply for zero percent interest cards if you are 100% certain that you're able to comply with the eligibility criteria. Issuers go to great lengths to specify the kind of applicant that they want, so be sure to check. Every time that you apply for a low APR credit card, a search is recorded with the credit reference agencies. Too many applications may lead to rejection. Zero balance transfer cards A zero percent APR credit card rate can be very enticing, but you'll have to pay a four percent transfer fee. This will be added to the amount that you owe. Moving a balance from a high to a low-limit card may also have negative implications for your credit score because it affects your credit utilisation figures. Closing down old credit and store card accounts can also be detrimental.