Choosing the best credit cards

When you look around the market, you quickly discover there are an alarming number of banks, finance corporations and credit unions with credit card offers. This site gives you free access to a credit card comparison service. With this help, you can work out which offer represents the best deal.

No matter what terms you are looking for in your credit cards, i.e. low interest, balance transfer, rewards, and so on, there are offers to match your needs. Make a decision, fill in the credit card application and you are moving forward.

Credit cards explained

Finding cheap credit cards

During the boom years, there were always credit card offers in the mail box. Banks and finance corporations were fighting for market share and there were a lot of cheap deals. Once the recession hit, all the cheap money dried up. This is actually quite remarkable because the Fed is still making cheap money available to the banks. Unfortunately, the credit risk managers have all grown more cautious and the number of cheap credit cards has reduced. So what can you do to give yourself the best chance of finding one?

Low Interest Credit Cards

These cards either offer a low fixed-rate APR or the low rate is on an introductory basis and the full rate becomes payable in due course. In the best cases, there will be no fees payable for the first year. Always check what fees and charges may apply when you use the account.

Low Introductory Rate Credit Card

Most issuers offer low-interest cards on an introductory basis. So if you're transferring your account or simply applying for another card, you're likely to be offered a 0 APR credit card or low interest rate for a limited period, usually between six and eighteen months. This is a very cost-effective way of financing a big-ticket purchase.

Balance Transfer Credit Card

If you find the interest on your current card is too high, a balance transfer to another credit card is usually the cheap solution. If you have a good credit score, low interest is usually available for an introductory period. Some issuers also allow the same low rate on new purchases for a short time.

Gas Rebate Credit Card

Whether this is a good deal for you will depend on your lifestyle. If you travel long distances to work or you're always driving the family around town, this may work well, particularly if gas prices continue to rise. Look for cards that give the rebates when you pay with credit cards at all your local filling stations.

Credit Card Deals

All the major credit card issuers make offers to tempt you. Your problem is to identify the best credit cards. The only way to do this is by comparing all those claiming to be the best credit card offers and identifying which actually work well for you. Never think in general terms. Always look at your own financial circumstances and match the offers to your specific needs.

Airline Miles / Rewards Points Credit Card

Every rewards credit card works in the same way. You earn points every time you use the card to make a purchase. When the points have built up to a reasonable total, you can redeem them either as a discount on an airline ticket, for a gift voucher or in exchange for actual goods.

Student Credit Card

This is a balancing act on both sides. The card issuer believes students are likely to get good jobs, so giving you credit early will build your loyalty to their brands. If you accept the good interest rate deals as a student, watch the terms very carefully when you use the card. Blighting your credit score early is not advised.

Business Credit Card

As an established business with a good credit record, you will get a credit card quite easily. But as a start-up or small business, it's more challenging. Debit cards and charge cards to force you to maintain financial control are easier. Once established, cash backs and rewards cards are available.

Unsecured Credit Cards for People With Bad Credit

If you have a poor credit score or have been through bankruptcy, you can rebuild your score with unsecured cards for bad credit risks. The best cards do not require a cash deposit but pay particular attention to the terms and conditions. It's particularly important to make the monthly minimum payments without fail.