If you’re considering getting a credit card then it is certainly worth shopping around in order to make sure you get the best deal. There are several different aspects of a credit card that are worth taking in to account before you make your final decision such as the APR, the Balance Transfer Rate, the Purchase Rate and Period and whether it offers extra features such as Cashback or a Reward Scheme for spending.
The most important feature to consider on a credit card is the APR, or the Annual Percentage Rate. The APR is the amount a Credit Card Provider will charge you for ‘borrowing’ money. In simple terms the higher the APR on a credit card, the more expensive it will be for you to borrow the money. The APR on Poor Credit Rating Credit Cards therefore tends to be higher than that of a standard credit card as Poor Credit Rating Credit Card Providers are taking out a bigger risk with people with less than desirable credit histories.
Another feature to pay attention to is Balance Transfer rates, the ballpark figure for Balance Transfer rates tending to be around 3%. You will often find that Credit Card providers will offer 0% on Balance Transfers for a promotional period. 0% Balance Transfer periods may appear attractive but make sure you watch out for what the rate rises to after the promotional period has ended as some providers will try and sting you through hiking this figure up considerably.
If you have good credit rating then you will find that you are often eligible for credit cards that reward you for spending through features like offering you cash back or giving you reward points that you will be able to redeem in the future in restaurants, hotels or on flights. Again make sure that the other features of the cards still fill your needs and requirements as some Credit Card Providers will offer rewards schemes that shadow other factors of the card such as a high APR and Balance Transfer Rate.
