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It is very important to compare credit cards to make sure you get the best deal.
This is a quick guide we have put together to try and help people get the best deal from the sea of credit offers. It really is an ocean out there in the world of credit cards, and if you are not careful, you may end up in way above your head!
Compare Credit Cards – Top 7 things to look out for!
1) It’s always a good idea to pay off your current debts before applying for any interest free credit card.
2) If you do take out one of these 0% cards, it will work much better for you if you can clear the balance by the end of the interest free period.
3) Look out for cards that offer incentives for shopping… these can range from grocery discounts, air miles, and much more. Using your card wisely, you should be able to get some great benefits from these offers.
4) When you compare credit cards, make sure you fully understand that cards definition of a purchase. Normal card spending usually falls under the interest free offer... withdrawing cash from cash machines, online gambling, and sometimes buying gift tokens might not be covered by the 0% offer…
5) In reality, the reason most credit card providers give out an interest free offer is to try to get people to spend more… and so make money from them. Don’t be played by card providers though, keep a close eye on your spending, and as mentioned before, make sure you will be able to clear the debt within the 0% period.
6) One thing worth noting… it may be a bad idea to transfer balances onto an interest free card, even if it has a 0% on transfers offer! This seems odd, but most people don’t realise that payments made against your debt are structured in a way that the free debt is paid off first. More often than not, this is the balance that you have transferred onto the card. – So, if you do not managed to pay off this balance within the interest free time-span? – Well, sometimes the debt that is left may result in charges of around 17%. This practice is known as Negative Payment hierarchy, and could cost you dearly. – So, check this when considering any 0% balance transfers.
7) Find out what will happen to the interest free offer if you fail to make the minimum balance each month. Often, failure to meet this payment will result in loss of the 0% period. This could possibly cause your debt to spiral out of control, leading to a bad credit score, and higher interest charges on future credit.
If you are simply looking for a credit card to use for internet payments, maybe consider one of the pre paid credit cards?
