Searching for a cheap credit card? Cut through the forest of offers available with our quick overview
- By Hannah Callen
- Published 05/12/2008
- Finances
- Unrated
Hannah Callen
Hannah Callen, a full-time freelance writer-editor, consultant and columnist in Hertfordshire, is keen to help consumers make informed monetary and credit decisions. Hannah once fell foul of easy credit but has since successfully overcome her difficulties and gained an immense amount of knowledge along the way, which she now shares online.
View all articles by Hannah Callen
With over 300 credit cards on the market today, searching for a cheap credit card can seem like an understandably bewildering task. Luckily much of the hassle has been removed by the host of financial service comparison sites popping up on the net, on an almost regular basis. These sites work by presenting all the information that you may need to know about the credit cards available on a few simple web pages. At the same time you will be swamped by adverts about anything from mortgages to life insurance! Thankfully the ease that these websites offer to those searching for credit card deals far outweighs this small inconvenience.
Luckily, there is a way of comparing all the credit cards available in one go, which makes searching for a cheap credit card easier than it has ever been. If you simply type 'cheap credit cards', in one of the numerous search engines, you will be literally inundated with what are known as financial service comparison sites. These are identical in function to the sites that compare the price of TVs, energy providers, and so on, but solely compare all products being offered by financial services. These sites compare the best mortgage deals; the best loans; the best insurance; and, of course, the most popular credit cards. They also search through a phenomenal number of cards - one has details on over 300 credit cards!
The first thing that you will want to take notice of when searching for a cheap credit card is the card's 'annual percentage rate', or APR. This is the amount of interest that you will have to pay back on the balance of your card. These rates vary but can be anywhere in the region of 10 - 20%; some are even lower. However, it is important to remember that there are two types of APR: the fixed and the variable, the most common being the variable APR. This means that even though the APR seems low at first it will change with interest rates.
When searching for a cheap credit card, there are going to be a number of things that you need to know before making your final decision. On your chosen comparison page you will be able to see all of this information quite
clearly, making it easy to weigh up the key factors that appeal to you and your spending habits. It is also worth considering all that the card has to offer because, some cards that look more expense than others on a casual glance, can have additional benefits that make them a lot better. For example, the standard APR could be higher than the competitors but then the card could offer huge savings at your favourite supermarket.
Other offers can make card that appear not as cheap as others more beneficial in the long run. These are often connected to specific individual lifestyles, or for people that use cards in specific ways. For example, there are cash back credit cards that give you a lump sum 'cash back' payout at the end of the year, dependant on how much you have used the card. Effectively everything that you buy receives a discount. This is good if you are the type of person that makes regular repayments, in full, at the end of each month. Other cards offer, for example, free Air Miles - great if you're a frequent flier.
Other popular incentives to look out for are interest free balance transfers and periods when you can make interest free purchases. If you already have an existing card then you could potentially save money on growing interest charges by transferring your balance to a card offering an interest free balance transfer period. Obviously if you don't have an existing card, and therefore an existing balance to transfer, this won't be a good selling point, so you will need to use other factors to make your decision. Interest-free periods are periods when you can spend money and not be charged interest - this maybe a good idea if you are wanting to buy a specific item, and intend to pay it back during the offer period. However, it isn't such a good idea if you think you are going to be unable to pay it off in full because once the introductory offer ends you will be subject to the standard rate.
Hannah Callen, a freelance writer for Money-Now.co.uk, has published a number of personal finance articles and has her finger on the pulse of cheap credit cards. If you're looking for further impartial advice about credit cards visit Money Made Clear.
Luckily, there is a way of comparing all the credit cards available in one go, which makes searching for a cheap credit card easier than it has ever been. If you simply type 'cheap credit cards', in one of the numerous search engines, you will be literally inundated with what are known as financial service comparison sites. These are identical in function to the sites that compare the price of TVs, energy providers, and so on, but solely compare all products being offered by financial services. These sites compare the best mortgage deals; the best loans; the best insurance; and, of course, the most popular credit cards. They also search through a phenomenal number of cards - one has details on over 300 credit cards!
The first thing that you will want to take notice of when searching for a cheap credit card is the card's 'annual percentage rate', or APR. This is the amount of interest that you will have to pay back on the balance of your card. These rates vary but can be anywhere in the region of 10 - 20%; some are even lower. However, it is important to remember that there are two types of APR: the fixed and the variable, the most common being the variable APR. This means that even though the APR seems low at first it will change with interest rates.
When searching for a cheap credit card, there are going to be a number of things that you need to know before making your final decision. On your chosen comparison page you will be able to see all of this information quite
Other offers can make card that appear not as cheap as others more beneficial in the long run. These are often connected to specific individual lifestyles, or for people that use cards in specific ways. For example, there are cash back credit cards that give you a lump sum 'cash back' payout at the end of the year, dependant on how much you have used the card. Effectively everything that you buy receives a discount. This is good if you are the type of person that makes regular repayments, in full, at the end of each month. Other cards offer, for example, free Air Miles - great if you're a frequent flier.
Other popular incentives to look out for are interest free balance transfers and periods when you can make interest free purchases. If you already have an existing card then you could potentially save money on growing interest charges by transferring your balance to a card offering an interest free balance transfer period. Obviously if you don't have an existing card, and therefore an existing balance to transfer, this won't be a good selling point, so you will need to use other factors to make your decision. Interest-free periods are periods when you can spend money and not be charged interest - this maybe a good idea if you are wanting to buy a specific item, and intend to pay it back during the offer period. However, it isn't such a good idea if you think you are going to be unable to pay it off in full because once the introductory offer ends you will be subject to the standard rate.
Hannah Callen, a freelance writer for Money-Now.co.uk, has published a number of personal finance articles and has her finger on the pulse of cheap credit cards. If you're looking for further impartial advice about credit cards visit Money Made Clear.
