Credit Card Comparison

By: EconomyWatch   Date: 6 October 2010

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EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

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With so many credit card companies offering competitive deals on credit cards, a good credit card comparison is the only way to select the best credit card for your needs and get a good deal. When you do your homework and compare credit cards before applying for one, you can avoid unneccessary fees.

Credit Card Comparison: Benefits

A credit card comparison helps you search for a credit card that best suits your needs. By comparing several credit cards, you can:

  • Minimize your monthly credit card bills.
  • Increase your credit card limit.
  • Select a card that can best cater to your spending habits and lifestyle.
  • Find a good deal with low interest, no annual fees and rewards.

What to Consider when Comparing Credit Cards

When you compare credit cards, consider:

  • Hidden fees or costs: Hidden fees are costs associated with the acquisition or use of the card that are not generally specified by the company representatives. You can only learn about them after reading the fine print of the agreements and terms of the card. When applying for a credit card, you must read all the fine print carefully and discuss them with the company representatives.
  • Charges and fees: You must be aware of the annual charges, over limit fees, delayed payment fees and other processing and administration fees associated with your credit card.
  • Card limit: The maximum credit that you can charge on your card should match your personal spending limit. The credit limit is usually set by the credit card issuer, based on the applicant’s credit history and income. Therefore, this information is usually tough to access unless you provide your personal data to the credit card companies. You can, however, take the help of a credit card sales representative for an approximate estimate of the credit card limit that you can expect.
  • Interest rates/APR: Compare the interest rates that various companies charge on purchases made through the credit card. While opting for a card, ensure that its interest rates are competitive.

Consider the overall benefits offered by a credit card company before selecting a credit card. For example, you might receive benefits for using a credit card or are offered a 0% annual percentage rate (APR) for a specific time.

How to Compare Credit Cards

Visit the individual bank websites and compare the features and benefits offered.

Use the services of a financial comparison site that offers you a comprehensive comparison between several credit cards. These websites display the distinguishing features or benefits, such as cash backs, rewards or balance transfers. The result of the comparison between various cards is displayed in a table format.

Credit Card Comparison Resources

As our EconomyWatch.com guides show, there are many Credit Card options that can be found in todays competitive and rapidly evolving financial market. When you compare credit cards, look at all the different features, benefits and costs, and consider the following points (refer to the respective sections for more information):

Standard Interest Rates

Interest rates that are calculated upon the amount that has been spent as a credit by the card holder can be very significant. If a credit card company is giving a low interest rate which is normally known as the APR or Annual Percentage Rate to the card holder then that can turn out to be a useful Credit Card Benefit, especially for those who constantly deal with over drafts.

Reward Program Choices

There are various kinds of rewards that are received by the customers that are considered as Credit Card Comparison. Some companies present frequent flier points,cash backs, gift certificates or various other things. These rewards are normally associated with purchasing an item or some particular service on the card. These things may or may not include cash advances,balance transfers or some other special uses.

Cash back Policy

When one pays an amount to a merchant through a credit card, the merchant depending on the deal with the bank pay a nominal percentage to the credit card service provider. The amount received by the credit card banks often share the amount with the card holder and provide them with another Credit Card Benefit. The card holder gets back his own paid money to some extent and the bank gets some profit as well as some publicity.

Credit Card Calculator

Credit Card Calculator is a tool that helps cardholders to calculate what card is best, taking into consideration existing credit card debt, spending and redemption patterns.


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