Welcome back to part 2 of The Many Different Types of Credit Cards.
Low rate
A low rate credit card has a low ongoing interest rate on purchases. Credit cards with low interest rates are good for people who typically carry a balance on their card. If you know that you won’t be paying your balance in full each month, then look for a credit card with the lowest interest.
Some credit cards also have a low “introductory rate” or “balance transfer rate”. This lets you transfer a balance from an existing card and pay as low as 0% on the balance for a set period of time, typically from 3 to 9 months. For instance the BankWest Lite MasterCard offers 0% for 9 months on balance transfers. One thing to be aware of with these cards is that the lower interest rate is generally applicable only to balance transfers and a higher interest rate applies to purchases and cash advances.
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The basic idea is the same (buy now, pay later), but credit cards vary greatly in terms of fees, perks, interest rates and rewards. Which credit card is best for you depends on a number of factors, such as spending habits, credit score, current debt and rewards preferences. There are useful websites out there that can help you compare credit cards.
To help you learn more our next articles will explore 4 different types of credit cards, so stay tuned.
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Welcome back to our blog! This is part 3 of Compare Credit Cards to Save Money.
Click here for “Compare Credit Cards to Save Money Part 1″
Or here for “Compare Credit Cards to Save Money Part 2″
How to compare credit cards online
Sorting through the stacks of credit card applications that show up in your mailbox each month isn’t an efficient way to compare the credit card options available to you. You need a way to search the whole market and narrow down your options according to factors such as interest rates and annual fees. The Internet is the most comprehensive resource for researching credit cards.
Instead of performing endless Google searches while guessing at keywords, try a financial product comparison site. Mozo.com.au is a good example of a website that allows you to compare various credit cards side by side. Information about each card is laid out in plain English and in a format that allows for direct comparisons. All of the essential information is available in one place, which saves you time and simplifies the comparison process.
You can shortlist credit cards and compare the details side by side. Benefits and an overview of the card are presented in simple terms. In addition to the nuts and bolts, you can also hear what regular people like you have to say about the card. Mozo features customer reviews and ratings so credit card applicants can access honest and practical assessments of each card.
For added convenience, you can apply for credit cards online directly through the site. From start to finish, the entire comparison and application process can be completed without ever leaving Mozo’s website. Financial product comparison sites empower consumers and make a potentially challenging process straightforward and hassle-free.
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Welcome back to our blog! This is part 2 of Compare Credit Cards to Save Money. Click here for “Compare Credit Cards to Save Money Part 1″
Because all the percentages and fine print can be overwhelming, many people just give up with an “Oh well, all credit cards are pretty much the same” and pick the first one that comes along. That couldn’t be further from the truth. Credit cards vary widely from one to another. Some will suit your financial goals and current debt, if any, much better than others. If you pick a credit card that’s wrong for you, you wind up having to go through the application process all over again to get a different card.
Here are just a few of the factors you need to evaluate before you make your decision:
• Balance transfer rate - The rate of transferring the debt of one card to another.
• Ongoing interest rate - The rate of interest charged on purchases.
• Interest free days - the amount of days that the holder of the card has until they must pay interest for purchases. Usually 55 days.
• Annual fee - the fee paid annually to the credit card provider for using their card.
• Cash advance fees - a fee charged against the cash advance.
• Rewards programs - Rewards given to the credit card holder for making purchases or repayments.
• Fraud protection - Policy of the credit card provider against fraud.
As you can see, there are far too many potential differences to just sign up for the first credit card that comes along. It’s an important financial decision, and it calls for careful research.
Stay tuned, we’ll have our third and final instalment of Compare Credit Cards to Save Money - How to compare credit cards online soon!.
This article is brought to you by Mozo - Helping you save money by comparing credit cards.
Why compare credit cards?
You’re a unique individual with your own budget, spending habits and approach to your finances. Perhaps you use a credit card for all your purchases. Maybe you use it only for emergencies. You may be a person who really likes rewards programs, or you might be focused solely on interest rates. All of these factors should come into play when you’re choosing a credit card.
Commonwealth Bank Low Rate Visa
VS.
NAB Gold Rewards
This has been part 1 of Compare Credit Cards to Save Money - Stay tuned for the next instalment, where we will discuss some of the features of credit cards you need to evaluate when comparing credit cards!
This article was brought to you by Mozo - Credit Cards information made easy.