Compare Credit Cards<br />01<br />What are you looking for in a credit card?<br />Compare<br />Get the best deal by comparing credit cards. Do a research and visit a credit card comparison website before making a credit card application.<br />Comparing credit cards is crucial because if you don’t know the facts, you won’t get the best card available. It’s just that simple. <br />
Low Rate Balance Transfer<br />02<br />The key points to consider when transferring your balance to another bank.<br /><ul><li>What interest rate applies to the balance transfer? Generally speaking, the lower rate the bank will give you, the less time you have to settle your debt before the regular rate kicks in.
How long do you have before the balance transfer rate runs out? It could be 6 months, 9, 12, etc., but you need to know.
Is there a limited time in which you have to instigate a balance transfer with the new bank – e.g. within three months of receiving the new card, or less?
What does the balance transfer apply to? The special rate of interest applies to the transferred amount only. It will not apply to any new purchases, nor to any new cash transactions made on the card—these will be treated differently to the transferred amount.</li></li></ul><li>Rewards Credit Cards<br />03<br />The key points to consider when comparing different rewards credit cards.<br /><ul><li>Don’t assume you’re getting something for nothing – take every aspect of the card into account when comparing or you may end up paying more for few benefits.
Is there an annual fee? You may be paying more in fees than you receive back in rewards.
How do you earn your points? Points are earned when you spend on your card. You should never think it is a good move to spend purely to earn points. If you end up not being able to pay off your balance at the end of the month, the value of any points earned will be more than wiped out by your interest payments. </li></li></ul><li>Rewards Credit Cards<br />04<br />The key points to consider when comparing different rewards credit cards.<br />Continued…<br /><ul><li>What are you points worth? Translate the reward points of different cards back into dollar value. </li></ul>E.g. $1 = 1 point = 5c, another may be $1 = 1 point = 50c, or $1 = 1 point = 75c etc. <br />You need to put in the effort to uncover this information, but if you don’t do it then you cannot effectively compare different rewards schemes. <br /><ul><li>How can you redeem your points?
Charities</li></li></ul><li>Rewards Credit Cards<br />05<br />The key points to consider when comparing different rewards credit cards.<br />Continued…<br /><ul><li>Cap and expiry – there may be a limit imposed on how many points you can earn on a certain period. </li></ul>Check the expiry date on points too – this prevents people who do not spend much from saving up for a decent reward because they are forced to redeem their points before then.<br /><ul><li>Interest free days, interest rates, fees and charges. A rewards card is just like any other credit card and you will be hit with interest charges if you do not pay off your balance in full each month.</li></li></ul><li>No Annual Fee Credit Cards<br />06<br />The key points to consider when comparing different no annual fee credit cards.<br /><ul><li>Is the provider compensating themselves in another way for waiving the annual fee?
Does an annual fee kick in after a certain time period, e.g. after one year?
What is the interest rate? Look for the lowest interest rate available unless you are absolutely, without a doubt certain that you’ll be able to pay off your debt in full each month.
How many interest free days do you get? You should still be able to get interest-free days even if there is no annual fee. Most cards will allow up to 55 days interest-free credit on purchases, though it varies. Note that you don’t actually get 55 days interest free on all your purchases – this is the maximum amount of time you get if your first transaction is on the first day of your new statement period.</li></li></ul><li>No Annual Fee Credit Cards<br />07<br />The key points to consider when comparing different no annual fee credit cards.<br />Continued…<br /><ul><li>Balance transfer offers – this is typically a popular hook to get new customers, however, if you do have a debt on another card and you can find a new provider offering a zero fee and a great balance transfer rate, you should grab it while you can. </li></ul>Make sure you check the fine print in this situation because the rate your balance transfer reverts to may not be the regular rate of interest; it may instead be the cash advance interest rate, which is usually around 20%. <br />It is your responsibility to check, therefore, sure that you choose a balance transfer deal that is realistic. In other words, one that offers a long enough period of time to completely repay the debt.<br />
Low Interest Credit Cards<br />08<br />The key points to consider when comparing different low interest credit cards.<br /><ul><li>Look for the lowest annual fee
Check whether the rates are introductory rates or ongoing
Check whether the card has a rewards scheme – but evaluate these with a fine toothed comb before going ahead, as you may lose out if you don’t
Check for hidden fees and charges – read the fine print on the website before you apply
Check what the cash transaction or cash handling fee is
Check what the foreign transaction fees are if you travel</li></li></ul><li>Credit Card Comparison Tips<br />09<br />Helpful tips on how to choose the best credit card.<br />When it comes to a credit card, one of the most important things you need to know before applying is the interest rates.<br /><ul><li>Interest rates for cash advances</li></ul>This is the interest rate you’ll have to pay on your credit card every time you withdraw money from an ATM.<br /><ul><li>Interest rates for purchases</li></ul>This rate is how much you will have to pay every time you make a purchase with your card.<br /><ul><li>Interest rates for balance transfers</li></ul>This is the interest rate given for balances that are transferred from one of your existing cards to a new credit card.<br />