Perhaps it is your first time to consider replacing your existing credit card, and you find the sheer number of choices available quite daunting.

Maybe you regularly travel for work or play, and you would like to switch to a credit card that offers better rewards.

A change in your professional or personal circumstances (a promotion, the birth of a new child) might also be prompting you to look into other options that could benefit you more.

Comparing credit cards

Whatever your reason may be for switching to another credit card, it is essential to make an apples-to-apples comparison.

Here, you will need to put a few critical factors into consideration.

How you plan to pay your bill

Should you prefer to pay your bills in full, opt for a card from a bank that waives annual fees as well as provides longer grace periods.

On the other end of the spectrum, if you are someone who prefers to pay only the minimum amount, consider credit cards that have low interest rates.

If you are planning to use your new credit card as your primary mode of payment for frequent transactions, choose one that has an excellent rewards program as well as a high credit limit.

Finally, if you intend to use the credit card for emergencies only, select one that offers a combination of low fees and interest rate.

Types of interest rates

Broadly speaking, credit card interest rates can be categorized into two: fixed and variable.

With a fixed interest rate, credit card users pay essentially the same interest rate. However, such a rate may change depending on the terms laid down by the bank, like late payments or going over the prescribed card limit.

With a variable interest rate, the interest rate you may have to pay can change from month to month. The interest rate here is usually tied to other financial indicators.

Credit limits

The amount that banks may be willing to let you borrow will depend heavily on your credit history. This can range from hundreds to thousands. But whatever the credit limits are on the card you are going to get, it is a good idea to spend within those limits to retain a good credit score.

Charges

Check the fine print, especially those that relate to penalties and other charges. Some cards may levy a hefty fee for transactions like balance transfers or spending beyond your credit limit.

Make sure to compare these fees before settling for a final choice.

Rewards

Choose a card that offers rewards that make the most sense for you. For example, if you frequently travel, select a card that offers a program geared towards travelers, allowing you to earn more points faster.

Do not forget to check the conditions set by the bank regarding the rewards program, including expiry policies and ways to earn the most points.

An easier way to compare credit cards

With numerous choices available for people looking for a new credit card, making the switch to a new one may seem like a difficult task.

Fortunately, if you are planning on getting a new card, you no longer have to hop from one bank’s website to another or leaf through pages and pages of brochures to pinpoint the best card for your needs.

By leveraging the power of the Internet, you can compare different credit cards in just one place through a credit card comparison website. Such a site can help you better understand the benefits of each credit card in your shortlist as well as enable you to maximize your savings.

This kind of website takes into account numerous important factors, including your spending patterns and the features you are looking for into a card.

All you have to do is to identify the features that work best for you and input them into the website. From there, a selection of cards will be listed. You can whittle down this list further by highlighting the top cards that you are interested in and compare these among each other.

Once you have found a card that works best for you, you can even apply online.

Credit card comparison made easy

With several credit cards vying for your attention, deciding on which one to get is no easy task. In the UAE alone, residents have over 200 options available to them.

Fortunately, a credit card comparison website can streamline the whole process for you.

AUTHOR BIO

Deepak Kumar is a Co-Founder of SoulWallet, a neutral comparison portal for consumer financial services. With a team of “out of the box” thinkers and a deep understanding of the UAE consumer banking industry, the company helps customers make the best choices while shopping for financial products such as credit cards and loans.

This entry was posted on Friday, May 31st, 2019 at 5:25 pm and is filed under Credit Card. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.