Compare Credit Cards

Credit card spending can be tricky to master, get it right and you are laughing all the way to the bank with instant access to cheap credit and the potential to earn a little back in the meantime, however get it wrong and it’s easy to fall into the debt trap, leaving yourself faced with huge interest bills and unmanageable repayments.

Which side of the fence you fall largely depends on the type of credit card you use and, for this reason it’s essential that you focus on finding a card that works with the way you spend.

Having said that, with so many different credit cards available finding your ideal spending partner is something that’s often easier said than done.

So, to make the whole process completely stress free we explain how to find the credit card that’s right for you.

The balance transfer card

If you have existing credit card debt and often pay interest on your borrowing your primary focus should be on making your outstanding balances as cheap as possible so that they’re easier to clear. Often the best way to do this is with a balance transfer card.

Balance transfer deals enable you to shift your existing credit card debt to a new card that charges a lower rate of interest than the one you are currently using. When it comes to doing this you have two main options:

0% balance transfer cards - This type of card typically offers a 0% period during which any balances you transfer will remain interest free and 100% of any payments you make will go towards clearing your debt.

Introductory offers can last anywhere from 6 to12 months so when choosing a card it’s usually best to go for the longest deal possible as, if you haven’t managed to clear your balance in the interest free time frame you will start to accumulate interest at the card’s standing rate.

When looking to save money on your existing debt by switching to a 0% balance transfer card you will also need to consider the ‘balance transfer fee’ that most providers charge. This tends to be a certain percentage of the total amount transferred and is something you will need to factor in when working out which card will save you the most money.

Lifetime balance transfer cards - If you are carrying large balances on your credit card and aren’t keen on switching provider every time a 0% offer expires then a lifetime balance transfer card may be right for you.

Although these cards charge interest it will be at a much lower rate than you would pay on a standard credit card, meaning that more of your payments will go towards clearing your debts.

Generally, the lower the rate of interest available on these cards the better and, as most do not charge you a fee for balances transferred, it makes them an even better option.

For more information on using balance transfer cards to save money on your debt click here

The purchase card

If you’re looking to make a large purchase and spread the payments out over a number of months, a specially designed ‘purchase’ credit card can often be a cost effective option as many providers offer interest free introductory offers on new spending.