If you are interested in getting the best credit card for your needs, you should strongly consider a number of top factors as you are looking over some of your card options. Here are some of the top considerations that many people make as they are picking out a card that will suit their needs:
The minimum repayment rates
Some credit cards can have higher repayment rates and looking into the minimum amount that you might have to pay each month can help you stay on top of your finances. In most cases the minimum repayment usually sits around 3% of the total balance or £5-£10, whichever rate is higher.
Annual Percentage Rate (APR)
The cost of borrowing on the card is calculated using APR. Comparing the APR on several different cards will help you to determine which card will actually be the cheapest for you to borrow with. Be sure to consider not only the APR but also some of the fees, incentives, loyalty rewards and more that can all be associated with the card you have.
Your annual fees
Some credit cards can also charge annual fees such as a fee per year that you might have to pay in order to keep the card and the account open. Annual fees are often added on to the total amount due and you may have to pay some extra interest on top of this. When you do not calculate some of the extra annual fee charges alongside the cost of using your credit card, you may see some extra charges in your use of the card.
There can be some ongoing charges for using services like a cash advance, for going over your credit limit or even using your card in a different country. Noting some of these ongoing charges and some of the extra charges for using your card will help you to see which cards can suit your lifestyle without any extra charges involved.
Loyalty points and rewards
Picking the right credit card with loyalty points and rewards could actually help you to enjoy a number of purchases throughout the year. If you are the type of person that regularly travels or could use petrol rewards, opting for a credit card that delivers these types of rewards can often provide a huge boost to your use of the card.
Check introductory interest rate
Rate increases can sometimes happen with certain types of credit cards. If you fail to pay down your credit card within six months for example, you may have an introductory interest rate taken away and be forced to pay a larger interest rate as a result. Make sure that you are getting a consistent rate when you are comparing cards.
One of the most popular types of loyalty points is the idea of getting money refunded on your card. Many people that have cash back rewards often use their cards for purchasing major items like their groceries, electronics and more. Paying your balance in full every month could give you access to some quick cash back that you can use on purchasing almost anything else was your card!
Keep some of these ideas in mind when you are hoping to find the best credit card for your needs as a UK consumer.