With household budgets remaining strained and interest rates on many of the major credit cards rising, many borrowers are looking at ways to ensure they are borrowing efficiently. One way is to make sure you are not paying over the odds for your credit cards.
By doing a bit of research, not only can you make sure that you are getting the best rate – you might be surprised to find you have been missing out on some extra benefits too.
Look for up to the minute advice and deals on the Money Expert Credit Card section and find a credit card which suits your needs.
In the meantime, here are some points to consider when choosing a card:
- Knowing your credit rating can help you understand the deals which may be open to you. If you have a poor credit rating or no credit history, you may find that you are limited to choosing cards with higher rates. If you manage such a card wisely this can result in you gaining access to more attractive rates, so make sure you pay off your balance on time and consider lowering your limit if it helps with your money management.
- If you are a keen traveller you may want to look for a card which can accommodate your passion. Opt for a card that offers you air miles as you spend, or doesn’t charge you when you use your card overseas. It’s also possible to find cards which offer you free travel insurance, so make sure you weigh up your options carefully.
- Many lenders offer points or bonus systems with their cards which allow you to save for rewards. In recent years many retailers have begun offering their own cards which operate in a similar way, so if you are a regular shopper with certain stores these may be worth a look. Another way to be rewarded for your spending is with cash-back cards. These work by crediting a certain percentage of your spending back onto your account and are great for people who clear their balance each month.
- Be aware of how you plan to use your card. If you want to use the card for spending – look for a low introductory rate, or a card which has nought per cent on purchases for a set period. After this point you may want to consider transferring your balance onto a card offering a low rate on balance transfers so that you limit the money you pay out in interest.