Choosing Your New Credit Card
TotallyMoney has compiled the ultimate guide to choosing your new credit card, and offers a free, instant credit card comparison in order to find you the best product available for your requirements.
Choosing a new credit card doesn’t have to be a difficult, confusing process. Many credit card providers offer tempting deals, but finding the product that will genuinely compliment your spending habits is crucial in order to truly benefit. We’ll help you do just that, then show you a comparison of the different options available in order to find the best deal.
Want to buy now and pay later?
Consider a credit card that offers 0% interest on new purchases as an introductory offer. A highly flexible option, these cards allow you to avoid interest charges and manage your cash flow by offering a period during which no interest will be charged on your new purchases, letting you to buy now and repay later without penalty. Look for the longest interest-free period available to gain maximum benefit, but be wary of the standard variable rate at the end of the deal – be prepared to switch again in order to wave goodbye to interest charges forever.
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Want to be a rate tart?
Avoid paying interest on your current credit card debts by shifting them onto a new credit card that offers interest-free balance transfers as an introductory offer. These cards offer a set period during which no interest will be charged on your transferred balance. As a result, all your repayments during this time will go towards reducing the balance rather than paying unnecessary interest charges. When managed correctly, you can avoid paying interest on your credit card debts ever again; look for the longest interest free period available with a competitive handling fee, and consider switching again at the end of the offer in favour of a new deal elsewhere – there’s nothing to be gained from loyalty.
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Want a permanent low interest rate?
These credit cards offer a permanent low interest rate, making them a good option for long-term use. Avoid reverting to the lender’s uncompetitive standard variable rate at the end of an interest-free deal by securing a constant low rate credit card deal. You’ll save yourself the hassle of needing to constantly switch cards in order to keep your deal competitive, and benefit from a range of additional features at the same time.
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Want to get paid to spend?
If you clear the balance of your credit card every month, earn cash for spending with a cashback credit card. Earn a percentage back of every pound spent for doing nothing more than using your credit card in the usual way. You’ll need to clear the balance each month in order to truly benefit, particularly as these cards can carry a comparatively high interest rate on any balance carried forward.
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Want something for nothing?
If you clear the balance of your credit card each month, utilise this habit and earn rewards such as air miles and high street vouchers with a rewards credit card. Doing nothing more than continuing using your credit card in your regular manner can earn you rewards – essentially getting something for nothing. Be sure view rewards as a positive side-effect rather than a reason to spend, and to carry on paying the balance in full each month, as any interest charged will negate the benefit of any rewards earned.
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Got a bad credit rating?
Use a credit card designed for bad credit applicants as a short-term credit rating improvement tool. Using credit responsibly is an excellent way to escape the sub-prime lending market and gradually qualify for cheaper interest rates. Credit card providers report on your credit card usage to credit agencies, letting others in the industry know that your relationship with credit is improving; this will improve your chances of being granted more attractive terms and affordable interest rates in future. Escape the rejection spiral by looking for a lender that specialises in dealing with bad credit applicants to increase your chances of being accepted.
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Now find the best deal
Totally Money compiles the top rated cards and shows comparisons of the entire credit card market. Use our credit card comparison tool to find the best option for you and save time, money, and hassle.
Please note: this website, and the articles and information within it are based on journalistic research. It does not and should not be construed to constitute financial advice. Any information should be considered in regard to specific circumstances. All tips are followed at your own risk and should be followed up with your own research. For more please refer to our terms and conditions of use.