Finding the right credit card for you

Finding the right credit card for you – it’s easier than you think

By admin, March 6, 2013

When you begin the search for a good UK credit card, you are likely to encounter a vast amount of information. A lot of this information can be conflicting, as well as confusing, and you might feel that you will never be able to root out the best credit card deal to suit your circumstances.

The way to find the best credit card for you is to cut through all the waffle and jargon and simply focus on what you need from a credit card. Once you know this, you can narrow down your options so that there are only a small number of deals to compare and to choose from.

What type of credit card is best for you?

To get the best credit card deal, you need to understand your spending patterns and to have a good grip on your finances. This will help you find a card that you can afford and that suits your needs. Here are a few examples of credit card types along with who they are best suited to:

Credit cards with low interest rates (low APRs) – these may attract your attention, but they are not for everyone. These are best if you want a card to use only occasionally and that you can afford to pay off in full each month. If you want a credit card for a specific purpose, this is not the option for you.

0% balance transfer credit cards – these cards, which give you 0% for a limited period (i.e. 12 months) are designed for people who already have debt and who will be able to pay off that debt by the expiry of the 0% period. They allow you to transfer the balance (debt) to the 0% card so that you get a better deal and can more easily manage your debts.

Cash back credit cards offer you money back on everyday purchases on everyday purchases, which is very beneficial but only worth it if you can your balance off in full (or very nearly) every month.

Low-rate life of balance credit cards – similarly to balance transfer offers, these cards allow you to switch existing debt over to a new card. The difference is that these cards give you a guarantee that the interest rate on the debt won’t increase as long as you can make minimum payments each month. These cards are best for people who can’t afford to completely clear their debts before 0% offer periods run out (usually within 12-18 months).