We are currently experiencing longer than usual wait times in our call centre. Please complete your application online if you want to avoid the queue.
Your reference code:

Features to Look for when Choosing a Credit Card

Features To Look For When Choosing A Credit Card

When deciding on a shiny new credit card, it can be easy to get caught up in the glittery deals each one promises. But with so many options on the market, there’s never been a better time to shop around for the best credit card for you.

Depending on how you spend your money (and how much of it you’re splashing at once) will determine which features of a credit card are best suited to you. 

Below are our top features to look for when choosing a credit card that’s right for you.

Interest Rates Vs Annual Fees

When it comes to fees and interest rates, there is often a trade off between the two. We’re sorry to say that that means if a deal looks to good to be true, it probably is. For instance, cards with low interest rates will charge higher annual fees, and vice versa.

However, if you’re aware of how you’re spending your money, and your ability to pay it off within the interest free period, you can use this to your advantage.

Lower Annual Fees

If you’re confident you can pay your balance off in the interest free period, then low interest rates aren’t an overly relevant perk to you anyway. In this case, you’d be better off selecting a card with high interest rates and lower annual fees.

When weighing up these options, make sure you take a look at exactly how long the interest free period offered on your card is. Cards with a longer interest free period will give you more time to pay off your balance before you get hit with those pesky interest rates.

Lower Interest Rates

On the flip side, if you intend on using your card to make large purchases and then pay them off over an extended period of time, lower interest rates are the feature to look for. You’re better off paying a higher once-off fee than continuously getting slammed by high interest rates on your repayments.

Reward Schemes

Ah, the most enticing of credit card features – the rewards schemes. When choosing a credit card, it can be too easy to follow the allure of incredible rewards like free money, holidays, and unbelievable discounts. But as we mentioned earlier – be wary of deals that sound a little too good.

Cards with rewards programs will usually compensate with higher interest rates and annual fees.

That’s not to say they’re a terrible idea. When choosing your credit card, simply weigh up whether fees charged justify the rewards earned. If you’re using your credit card a lot, then you may as well take advantage of the abundant points you’re racking up.

Balance Transfer

This feature is particularly relevant to those wanting to consolidate existing credit card debt under a new credit card. Low balance transfer fees allow you to transfer credit card debt from other credit cards, onto one new card. You will then be offered a number of interest-free months to pay off that debt.

Be wary though, if you are unable to eradicate that debt within the grace period, your interest fees could soar.

With all this in mind, it can still be overwhelming to find the features that are perfect for you. Our team of friendly experts at Compare & Connect are here to help. Get in touch today to find your dream credit card.

Sally Writes 21 Jan 2021