How to find the best credit card deals

According to research from APACS, the banking payments association, UK cardholders spend around £10 billion a month on their credit cards.

Statistics in the report show that there are more credit cards in UK than there are people. The credit crunch has stalled growth, but it’s fair to still say, when it comes to choosing a credit card – the choices are endless.

Below are 5 steps to help you find the right credit card deal for you.

1.            Assess your current needs

Is it that you need to transfer a balance? Do you not have enough disposable cash each month? Are you getting a credit card for a holiday? Increasing your shopping habit? The reasons why we might want to get a credit card are endless, and differ per person but it’s important that you are not choosing to get a credit card on a whim. You are potentially putting yourself at risk if you can’t afford the repayments in the long term. Why not talk it through with a close friend or family, or you may even find that your bank will offer free financial advice.

 2.            Work out what you can afford to borrow

You need to make sure that you are not borrowing outside of what you can afford. Obviously, you will be assessed when you sign up for a credit card, but make sure the assessment takes in to account all of your ‘lifestyle’ payments, however flamboyant they may be.

3.            Double check you can’t source money another way

If you are getting a credit card to increase your lifestyle i.e. a mortgage, a holiday or more clothes, then why not reassess your finances first. It may be that you don’t need to get a credit card; instead you could cut back in your current life. Try cutting out that daily cappuccino and you will be surprised how much you can save in a few months by making small lifestyle changes.

4.            Use a comparison site

If you’re sure that a credit card is definitely the right route for your individual circumstance, then you will need to make sure you get the best deal. That’s the best deal financially and also a company that works for you in the right way. Sites such as uSwitch compare credit cards in terms of affordability, API and potential benefits you may get from them. Make sure you take your time, so that you make the right choice.

5.            Look out for added extras

Don’t just look out for the best API, also have a look at what your credit card can do for you. That might be nectar points, airmiles or some credit cards even offer cash back deals at certain times. It is worth reading the small print to check what is right for you

 

Post by Sarah 

7 thoughts on “How to find the best credit card deals

  1. The first few months this 2012, I made a promise to myself I would cut back on unnecessary spending on my credit card, but because of holiday sales and occasions such as birthdays, graduations, etc., I’m guilty of losing control when it comes to overspending, to the point I don’t have much cash left after I pay my credit card dues. Your #1 point surely hit me right on the gut.
    Thank you for sharing this post. I will keep in mind your #2 and #3 points so I can truly control my spending habits with my credit card.

  2. We know it’s a kind of short notice, but very valuable and informative post! It was a grateful feeling to get some learning here…Good thing you post such useful information like this.

  3. First off, I recommend paying off your credit cards in full each month. If you follow that habit, then you don’t need to be as concerned about finding the best interest rate. Instead try to find the ones that give the best incentives. Cash back is a big bonus, or points towards groceries, restaurants, traveling etc… Also keep in mind how often you would make use of the incentive. If you hardly ever eat out, the a restaurant incentive may not be as enticing.

  4. Great tips, thanks for sharing with us this idea… I am pretty sure that my friends do also love this post…

  5. There is some great advice here, but remember because a price comparison site says its the best it doesn’t mean it is the right one for you.

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