When buying a new credit card, it’s important to take your time and ensure you’re getting the best deal possible. I know from experience how confusing it can be when you’re browsing all the options and trying to see which will benefit your finances most.
But it’s worth taking the time to find the right deal, and I’m going to talk today about what you should do when making this choice.
Check the Borrowing Costs
Checking the borrowing costs of the different credit cards open to you is important. I’ve found that this is the factor that matters most when it comes to the overall impact on your finances. If you’re planning on using the card a lot, you want to make sure that you’re not going to be punished for doing so with the high borrowing costs that you’ll pay every month.
Pay Attention to Fees
On top of the borrowing costs, another important thing to consider is the fees. Some cards will offer lower borrowing costs but then make up for it by charging you higher fees to have the card either on a monthly or annual basis. You’ll have to make sure you check whether that benefits you and your finances more than a card with lower fees but higher borrowing costs would.
Consider Loyalty Points and Rewards
These days, lots of credit cards have loyalty point systems and rewards attached to them. You’ll need to think about whether this is something that really matters to you and how much it might benefit you financially going forward. Sometimes, the rewards you get can help a lot and allow you to make big savings on other things, so don’t overlook this factor.
Compare the Terms and Conditions of the Options on Your Shortlist
It’s definitely a good idea to read the terms and conditions of the cards you’re considering. If you don’t do that, you could get caught out later.
As boring as reading the small print is, you’ll always benefit from understanding precisely what you’re getting into when taking out a new credit card. Places like Compare Credit also make it easier for you to compare the options directly to see which is right for you.
Look for a Good Introductory Offer
One thing I look for when taking out a new credit card is the introductory rate. It often pays off to ditch old credit cards that you’ve paid off and switch to new ones just because of the offers they provide to new customers.
They often provide bonuses or 0% interest offers to draw in new customers for the first year or so. Those introductory offers can be really impressive.
As you can see, there are lots of things you should take into account when you’re choosing the right credit card for your needs going forward. The choice you make today will have a significant impact on your financial health going forward, so be sure to check all the boxes we’ve mentioned above.
