Just the thought of "how to compare credit cards" can make most of us feel overwhelmed. But have no fear, we're here to make it easy for you! The best way to compare really depends on what type of credit card you are looking for.
To simplify things, first, ask yourself which credit card type is most important to you? For example, credit card types low rate, low annual fee, rewards or balance transfer? Or are you looking for travel or frequent flyer credit cards? Once you have decided on your credit card type, the next step is to know what extra benefits you need or want.
Using Kredmo's credit card comparison site, we have hand-picked the best credit cards. Or simply click on your preferred choice below to see our best credit card lists.
Compare Credit Cards by Deals or Offers
A great way to get a head start with a new credit card is to get bonus points. Bonus points come in the form of reward points or frequent flyer points.
Some credit cards have a bonus point offers of up to 400,000 reward points. To get the bonus offer you must meet the agreed minimum spend in the specific term (usually between 1 to 3 months). So do compare the bonus points and the amount of spending required over the number of months.
Balance transfer offers are good for giving yourself a break paying interest charges. To compare these types of cards, start with the balance transfer rate and its number of months. The ideal rate is 0% p.a. Or look for the lowest rate that has the longest number of months.
Also, look for the offer's balance transfer fee percentage. You want to compare the balance transfer fee too, looking for a no transfer fee or low fee. Finally, check its annual fee, so that you know what cost you are paying in the annual fees for a transfer.
Reverted interest rate is the rate subjected to any remaining balances unpaid. If you won't be paying off the balance transfer by the expiry date, then do compare the reverted interest rates too.
Interest Free Offers:
With interest free offers the comparing exercise is straight forward. Consider the purchase interest rate offer and the number of months. If you don't pay off the purchase balance by the expiry date, then it will revert to the standard purchase rate.
Just to add, if you foresee not paying off the full balance transfer, then do select a credit that also has low interest. That way after the offer expires, the interest rate you're charged won't be soo high.
Cash Back Offers:
With cash back offers it's a matter of comparing the cash dollar return. Though do look at the minimum spending amount required too to get the cashback. Finally, compare the annual fee too. Ideally, you want a cashback offer amount that is higher than the annual fee. This way you're left with cash surplus :).
Compare Credit Cards by Type
A Low interest rate credit card is likely your best choice if you carry a spending balance every month. Carrying a balance over each month means you get charged monthly interest. Of course, the lower purchase interest rate you have then the less interest you will pay. Comparing the purchase rate and the annual fee are the two keys here when making comparisons.
No Annual Fee:
This is self-explanatory as you should look for the lowest or no annual fee option. Low annual fee cards don't have as many extra benefits. Thus, if you'd like more perks then you may consider comprising and paying an annual fee.
Rewards credit cards cover different forms of rewards in return for spending. Comparing rewards can start with what do want to exchange your points for? Is it for gifts, cashback or gift cards?
Seek cards that have the highest point earnings per dollar spend. For example, some offer higher points for everyday purchases. While others may also offer points for government spending. Plus, there are cards that offer higher points for international spending too.
If you prefer to exchange points for flights or hotels, then select a frequent flyer credit card. Again, look for the highest points offer per spend and the dollar value of those points.
There are two ways to look at this. First is, do you want to earn frequent flyer points so that you can score free flights or hotels? Second, do you want a card to use only for one time holiday trip?
With frequent flyers points, you should compare the bonus points and the points per spend. But if you're seeking a card just to take on your holiday travels. Then pick a card that has extra benefits like no foreign transaction fees, travel insurance, lounge access or travel credits.
Compare Credit Cards by Extra Benefits
No Foreign Transaction Fees:
A Foreign transaction fee is charged for purchases outside your country or in a foreign currency. This fee is usually 3% of the transaction. For regular travelers or online shoppers in foreign currency do seek a credit card with no foreign fees.
Complimentary international travel insurance generally covers a group of insurances. These can be emergency medical, hospital expenses, transport accident cover, travel cancellations, baggage money and documents. However, you must always buy your flight on your credit card to trigger the insurance cover.
Covers you with complimentary purchase protection around the world. It generally covers purchases for 90 days from theft or damage on eligible items purchased on the card.
Should you not get a refund on an unused eligible item. Then within 90 days of the eligible purchased item, you can get reimbursed likely with no excess.
Not all credit cards are compatible with mobile payments. The popular mobile payment apps available to compare are Apple Pay, Samsung Pay or Google Pay.
Compare Credit Cards by Providers