How to Compare Credit Cards Providers

By [http://ezinearticles.com/?expert=Russell_Marlow]Russell Marlow

For all the doom and gloom about the current economic recession gripping the country and all the talk about the difficulties of obtaining credit -  when it comes to comparing credit cards, it's evident that the market is still fiercely competitive. There are different cards to suit different people, introductory offers of zero percent interest and zero-interest balance transfers, and a range of different rates of interest on the credit. Comparing credit cards can be an important exercise.

Comparing credit cards is not just about comparing the wide range of advertised interest rates - invariably expressed as the annual percentage rate, or APR, to make like with like comparisons easier. Choosing the right credit card for you is just as much a question of deciding what type of credit card user you are.

If you always repay any outstanding balance on the card every month, thus never accruing any credit interest charges, the rate of interest applied by the card issuer is, of course, of only academic interest to you. But there's still potential for comparing the card you currently use with ones that might offer additional benefits such as "reward" points for redemption against a whole range of goods from CDs to travel, fuel discounts or even discounts on the price of a new car. A variation of the reward or loyalty principle is the cashback card that can actually repay you for using the card.

The majority of credit card users, however, end up paying some amount of interest on their transactions each month. In that case, of course, the card's rate of interest will determine just how much needs to be paid and selecting a card with the lowest rate of interest will make a great deal of sense. There are often ways that the user can minimise the amount outstanding at the end of every month - by setting up a direct debit payment into the credit card account each month, for example - but at the end of the day, the amount charged in interest on any outstanding balance will still be determined by the rate.

If you're such a card user, or one who has already built up a sizeable and seemingly unchanging debit balance, then it could certainly be worth comparing credit cards to find those offering zero-percent interest on balance transfers for an introductory period. These periods can last as long as 12 months and could provide an excellent opportunity for finally tackling the outstanding debt and attempting to clear it once and for all. It's worth bearing in mind, however, that many balance transfer deals continue to apply interest (in the first place) on any new purchases. So, unless the introductory deal also comes with zero-percent interest on new purchases for a certain period, then interest charges can continue to accumulate.

With such a wide range of credit cards available and given users' differing spending and repayment habits, comparing credit cards is key to getting the right deal for you.

Russell Marlow is a London based freelance writer who writes about financial
products including credit cards [http://www.tescocompare.com].

Article Source: [http://EzineArticles.com/?How-to-Compare-Credit-Cards-Providers&id=2140350] How to Compare Credit Cards Providers