How to Compare Credit Cards the Right Way

By [http://ezinearticles.com/?expert=Lynette_Hill]Lynette Hill

It is no secret that in order to effectively get the best credit card deals; you need to compare credit cards. Start learning the features of balance transfer cards and reward cards because this information can make the biggest difference.

Normally, cards must be changed from year to year. Therefore, it is vital to know how to compare credit cards. To know how to compare different cards with ease, consider the following steps:

Step One: Assessing Your Needs

The first step in effectively comparing cards is to assess your own needs with accuracy. The fact remains that knowing what to look for in a particular card is defeated if you are looking for the wrong card for your personal requirements. Most of the time, you can get the best deals just by using common sense.

Step Two: Studying Balance Transfer Cards

Probably the most competitive of all cards are balance transfer cards simply because credit card debt is a big issue, especially since the economy is tanking. Balance transfer cards are the ones that many people want to know about especially when they compare credit cards simply because it makes a positive difference on their financial situation.

How do you transfer a balance?

If you want to transfer a balance, you need to look for the longest period at the lowest rate. Generally, the longer the period is, the higher the rate. However, it will not hurt to get a few extra percent if you have sufficient time to pay your debt in full. Note that a whole year at 2% is much better than 6 months at 0% followed by another 6 months at 15%. Of course, the annual fee is not the main issue unless the rate is much more than it should be when you compare this card to similar others. The fact is that some balance transfer cards do not even come with annual fees. Nevertheless, settling for these types of cards may not be the best option if you are looking for the best deals.

Step Three: Study Rewards Cards

The second category when comparing credit cards is reward cards. This type of card has become quite popular in recent years. Many people do not even consider getting a card without an accompanying rewards program. The issues that you should be wary of when going for this type of card are the variety of rewards on offer as well as the amount of spending you need to do in order to qualify for the rewards. Most reward programs are very flexible some may offer frequent flier rewards while other offer vast selection of travel and non-travel related rewards. Just make sure that you obtain all information you need to get the best credit card offers.

Once you are done establishing the type of program rewards that you want, you can get a reading on how much your spent dollars are worth. Additionally, be aware that dollars create reward points that are translated back into dollar view once you come to redeem them.

Step Four: Start Comparing

This is the easiest step to take. Know that beyond the two categories, comparing cards is just a matter of checking out the general feature of each card such as interest rates, fees and charges. It is best that you use a great comparison site in order to make comparing easier and to ensure that you are getting the best credit card offers. Always use a trusted comparison site such as The Credit Card Guide to make sure that you are presented with the best offers available on the market today.

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Article Source: [http://EzineArticles.com/?How-to-Compare-Credit-Cards-the-Right-Way&id=3726428] How to Compare Credit Cards the Right Way