There is a plethora of credit card vendors in the market who can give you credit cards with different kinds of offers and benefits
. But before you decide to go for one, you should do a comparison between the various cards available and only then apply for the one which suits you best. Online credit card comparison is a good way to save money and time.
Before we go into further details about how you can compare credit cards its best that you know what is a credit card and how it works. A credit card is basically plastic money as most people call it. The holder of the card can buy goods or services based on the holder’s promise to pay for these goods and services. In simpler words when you buy something with your credit card you actually borrow the money from the bank and then you have to return the money within a pre-determined time. You do have to pay interest on the amount that you have borrowed.
Instead of jumping directly into the realm of credit card comparison you should first make sure you know all the features which credit cards offer. Take care that you know how much you can borrow using your credit card before you land in debt which you can’t repay. Decide for what purpose you are getting the card and how you will use it.
All credit cards have various terms and conditions on their usage. The comparison starts when you read and compare the terms of usage of the various cards. The minutest of details in these can distinguish a good card from a bad one.
The first two attributes of a card that you should compare are the credit limit and the payback plan. The credit limit is the amount of money which the bank issuing the card allows you to borrow. The details of the payback plan include how the bank wants you to repay the borrowed money. For example a card may offer a 10% payback plan which means that every month you should at least payback 10% of what you owe.
Next most essential comparison would be to compare the interest rate of the various cards. Since the money you spend using your credit card is borrowed money, the interest rates determine how much more you pay when you return the money. Cards with lower interest are always more welcome but it does not mean that it is best suited for you. A higher interest card may offer you special benefits which would suite you ideally.
Various websites allow you credit card comparison in detail based on parameters like balance transfer rate, interest rate and cash advance rate, annual fee and special rewards. There are various categories of credit cards like gold, platinum, low rate, frequent flyer, balance transfer, no annual fee and business cards. From the sites you can compare all the cards of the same category from various banks and choose the one most suited for you.