by Katerina Nikolas

Created on: August 26, 2010

Comparison credit card shopping is relatively easy with the internet as there are specific sites which group cards by type, which is convenient for the consumer who actually knows what type of card they want. Of course want and available offers are two different things so it pays to know in advance which type of card you would qualify for by your credit score. Applying and being rejected will show as a credit application on your credit report and has the knock on effect of lowering your score.

If you know what type of card you want then you can narrow down your search considerably. Decide if you want a balance transfer card, a cash back card or a rewards card. If you need a card to establish credit for the first time you need to check secured cards out and if you have bad credit there are bad credit cards available from subprime lenders or secured cards which will serve you better in the long term.

When comparing balance transfer cards you need to consider the transfer fee, the introductory APR, the length of the introductory offer, and the variable APR when the promotional period ends. You should consider if you are able to pay your balance off before the promotional rate expires and the total costs and savings on the card you opt for.

Secured cards typically carry fees and you should compare fees closely between cards as there can be huge differentials. Read the full terms and conditions as some cards are advertised as free of an annual fee but then levy expensive processing fees. Look at the whole package and even check if interest will be paid on your secured deposit and the general time frame which the card gives for moving into unsecured credit if you demonstrate good usage of the secured card.

Perhaps a rewards card would be more valuable to you than a general cash back card. Travel cards can offer the best redemption value of all rewards cards with hotel cards topping the charts. When comparing rewards cards check for clauses which may be imposed such as expiration of points after a set period, or bonus points awarded after a certain amount of spending, and if that amount is viable for you to qualify.

Your main priority if you intend to carry a balance is the APR charged, whereas if you always pay the balance off in full each month the APR is an irrelevance. You should consider benefits such as free travel insurance and extended warranties.

Not all credit cards are equal and the best cards are available to those with the best credit scores so it is worthwhile checking your credit score prior to an application being made, and thus spare yourself any possible rejection. Always read the full terms and conditions attached to any card before applying and be certain the card meets your full needs.

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