How to Effectively Compare Credit Card Offers

With the number of different providers on the market, it can sometimes be difficult to know how to effectively compare the credit card offers available. Credit cards are some of the most competitive financial products on the market and are frequently offered with a wide range of different deals and promotional rates.

For new and existing customers, learning how to effectively compare credit cards can be a complicated matter. Credit card companies bombard consumers with advertising and marketing in a way that can make it tricky to compare exactly what it is that each card offers. Offers include promotional interest rates, discounted balance transfers and additional discounts on other related products and services. Understanding how to effectively compare these offers can ensure that a consumer makes the right choice about finding the credit card that is most suitable for him or her.

Understanding introductory rates

Introductory rates are often part of an offer available to new customers. These rates reduce the cost of borrowing and can vary greatly from as low as a 0 percent annual percentage rate (APR). For consumers, certain key details are important in establishing how these rates work. First, you should ensure that you confirm the term during which this reduced rate applies. A six-month term at 2.9 percent, for example, could be worth more to you than a three-month term at 0 percent. The second vital detail is to make sure that you are aware of the terms of the account after the introductory rate ceases. What will the standard APR be, and are you committed to the account for any period thereafter?

Balance transfers

Balance transfers are used by credit card companies to attract individuals carrying balances on other cards. They are normally offered at a low rate of interest in order to save customers money. It is important to establish how long any promotional rate on a balance transfer will apply and what the APR will rise to thereafter. Establish what the minimum payment commitments will be and how other transactions on your account could affect the offer. A late payment, for example, often results in a promotional rate being withdrawn. Many card companies also charge a handling fee for processing a balance transfer, so you should also check how much this would cost.

Fees and benefits

While few credit card companies charge an annual fee, it is worth finding out which fees are applied to the account. Some companies, for example, charge a reasonably high fee if you go over your credit limit or if you miss a payment. Most credit card companies also offer other benefits, including discounts, promotional offers and supporting financial products such as payment insurance. While some of these benefits will be of little interest to you, there might be others that could save you a lot of money.

Customer support

Understanding how a company cares for its customers should be a key factor in your decision to take a credit card. Confirm that the provider offers online account management and 24-hour customer support. Read customer reviews online to establish what "real" consumers think of the service. In the event that you need to contact the card provider, you need to be confident that your inquiry will be managed promptly and professionally.

Choosing a credit card provider might not be a lifetime commitment, but making the right choice could save you time and money at a later stage. Use online comparison tools and your common sense to identify the product that really meets your needs.