If you are looking for a new credit card or looking for one to replace the one that you have, then it is a good idea to have a think about what will make a good credit card. There are quite a few differences between the different types of credit cards and it is a good idea to think about what might suit you the best, depending on how you use your card.
If you Repay in Full Each Month
IF you always repay the full balance each month then comparing a credit card on cost will not be useful as you will not pay any costs. However, you might be interested in a cash back card. There are different lenders that offer these cards and they will give you some money when you make a purchase. The cashback is added up and then credited to your account towards the cost of the following month. The cashback is a percentage of what you spend and therefore you could find that it will be quite small. The actual percentage is small and therefore you will not get a huge return. However, it will be a small bonus and better than nothing. It is worth noting though that the interest on these types of cards tends to be more expensive and so if there is any chance that you may not be able to repay then you might need to consider whether this is right for you. Also, you need to be sure that you will not spend more money than you intend to because of using the cashback as an excuse to spend. The return is very low, it should just be seen as a little bonus rather than a reward for spending.
If you Only Repay the Minimum
If you only tend to repay the minimum amount off your credit card, then the interest rate will be the most important factor for you. This is because you will be paying interest all of the time and you want to make sure that you are not paying more than necessary. It is a good idea to think about how much it is costing you to do this and how much you could save if you had a low interest rate. It is also good to consider paying more than the minimum as you will save a lot of money doing this. You could just increase what you pay a little bit and perhaps reduce how much you use the card so that you can get things under control.
If you Have Lots of Outstanding Debt
If you have a card with lots of outstanding debt then it could be worth considering a balance transfer to a 0% interest card. These will allow you to transfer your debt to another card and then you will have a period of time where you will not be paying any interest. The interest free period will not last forever, but it will allow you to be able to have a breather while you come to grips with the debt. It might give you enough time to be able to repay it. It is worth noting that interest rate after the interest free period can be higher than average so you will need to make sure that you try to repay everything you own during the interest free period. This period might only be a few months, perhaps up to six months, so you will need to think hard before you do this, to decide whether it will be something that will suit you or not.