When looking for a new credit card there are some key factors you should consider when comparing the various deals available. Although, some of these offers sound persuasive, you still need to bear in mind the basic numbers that may affect your repayments.
Credit card offers
Here are our top tips when searching through credit card deals together with some examples of current offers:
Low APR interest rate offers
Unless you pay off the full balance of your credit card at the end of every month, the amount of APR you will be charged should be your number one priority.
0% balance transfer offers
If you're looking to transfer an existing credit card debt from your old card to a new card, then you should look for 0% balance transfer offers.
The important factor is the length of time that the 0% applies for. The longer the 0% lasts for, the better. Cards such as the Post Office Balance Transfer credit card, offer a much longer 0% period of around 25 months. This effectively means that you can transfer an existing debt that you're paying interest on, to a new card at a 0% rate for the offer period.
For more information, read our article on how balance transfer credit cards work.
0% purchase offers
A 0% purchase card effectively gives you an interest free period for new purchases, particularly useful for spreading the cost of more expensive items.
Again, the goal here is to find a card that gives you the longest 0% purchase period. For example, the Post Office Platinum credit card gives your around 8 months at 0%.
It's important to note however, that should you choose to go down this route, ensure you repay the full amount of your purchase before the 0% deal expires. Otherwise, you may start getting hit with high interest rate payments.
Rewards and cashback offers
If your objective is to find deals that reward you for using your credit card with either shopping points or cashback incentives, then you should always remember to check the more significant issues first, such as the APR rate as discussed earlier.
Whilst some reward offers sound enticing, the fact remains that you are still subject to the APR rate and potentially high interest repayments if you don't pay off your balance in full at the end of the month. This may negate the amount you get in rewards for using the card.
Cashback type rewards may be particularly beneficial if you use your card for the weekly shop. For example, the ASDA Cashback Credit Card gives your shopping vouchers that you can use online, in store or even at your local ASDA petrol station. It even comes with a 0% offer on balance transfers and purchases.