How to Compare Credit Cards

Debt to Reduce/Clear

• Some cards offer an introductory low interest period but shoot up to a much higher APR after the initial period (eg. 6 or 12 months).
• Balance Transfer Fees - typical fees are around 2-3% of the balance transferred. If you are transferring a balance to take advantage of a 6 month 0 per cent balance transfer rate and there is a 3% balance transfer fee, that charge is equivalent to 6% annually. Always check the smallprint!

Effective Spending

If you typically have a small or zero balance on your credit card, you may be better off looking for reward credit cards. These are credit cards that offer cashback, rewards points or discounts based on the amount you spend. This may be particularly useful if you clear your balance at the end of each month and would like to be rewarded for doing so. Look out for Nectar Points credit cards, cashback credit cards and loyalty credit cards such as the GM credit card.

What to look out for..

• If the credit card companies aren't making money on charging you interest, they will need to make this elsewhere. Beware of high APRs if you don't pay off your card.
• Annual charges - in exchange for some of these rewards and perks, you may be charged an annual fee.