Are There Big Differences Between Credit Cards?
There are lots of different places that offer credit cards. It can be tempting to think that they are all pretty much the same though and not really take notice of the differences and just quickly pick one. However, there could be quite significant differences and it is therefore a good idea to know what they are so that you can choose more carefully.
Some Have Rewards
There are some credit cards where you can earn rewards when you use them. Usually you get a percentage back of the money that you spend either in cash or vouchers or some other type of reward. This can benefit some people, but the interest rates can be higher and that means that if you intend to not repay the full balance each month on the card, it will mean that you could end up paying more and not gaining form the rewards on the card.
Interest Rates Vary
There will be a difference in interest rates between different cards. The interest rate is what you are charged if you do not repay what you spend on the card when you get your statement. It can make a big difference if the rates are low compared to high, especially if you spend a lot of money on the card and do not pay it off very quickly. Rates can go up and down though as they are normally not fixed when you have a credit card, so if you have a card already and you think the rate is good, make sure that you check pretty often to see whether the rates have changed on your card and others as it might be a good idea to switch every so often if you can find a better deal.
There may be additional charges on a credit card. These might include late payment charges, charges for cash withdrawals or for using the card abroad. These charges will not be something that everyone will pay and you will need to think about whether they are something which are likely to impact you and if so, you will need to look into them and compare them. It can be wise to be aware of all of the charges before you sign up to a card just in case, just so you are aware of things that you will be charged for so that you can avoid them or at least the cost when you are thinking of doing them.
The way lenders are with customers will also vary. Their customer service might be different and the way that they treat their customers, which is something you could find out by looking at reviews of that lender or even contacting the customer service department yourself. The way you bank with them, whether it is online, by phone or whatever may also vary and be significant for you It is a good idea to find out more if this is something that is important to you.
So, the difference can be quite large between the different cards and it is therefore a good idea to make sure that you keep them in mind. Then if you are choosing a new card, you will know what sorts of things to look out for. You will also be able to consider whether your current card is still good or whether you should consider swapping to another one. It might seem like a big hassle to switch but it could save you a considerable amount of money and mean you get better value for money as well so is worth considering.