Choosing a credit card?

Tena

In terms of credit cards/revolving debts, what do I look for? is it as simple as looking for the lowest interest rate? If that is the case then why are there so many providers offering different rates? surely no one would want a higher rate out of choice? yet all the majority of providers appear to offer different rates. Have I missed something here?

Fruit_and_Nut_Case

Tena wrote: »

In terms of credit cards/revolving debts, what do I look for? is it as simple as looking for the lowest interest rate? If that is the case then why are there so many providers offering different rates? surely no one would want a higher rate out of choice? yet all the majority of providers appear to offer different rates. Have I missed something here?

You can choose all you want but the CC provider has the last word on whether they're prepared to sign you up.

Generally speaking, the ones with the lower rates are harder to get. If you pay back everything each month (recommended) the interest rate is immaterial anyway.

YorkshireBoy

pikka wrote: »

...if u exceed it or your payments are due.. then the late payments fees and related charges will be higher for the credit cards with low interest rate..

I'm not aware of any cards currently charging more than the OFT's £12 figure set a few years ago now. Which specific cards are you talking about?

eddddy

Tena wrote: »

In terms of credit cards/revolving debts, what do I look for? is it as simple as looking for the lowest interest rate? If that is the case then why are there so many providers offering different rates? surely no one would want a higher rate out of choice? yet all the majority of providers appear to offer different rates. Have I missed something here?

Hi Tena
The main things to look at for credit cards are interest rates and "benefits" - e.g. cashback, points, freebies etc.

As a rule of thumb, to be accepted for the best cards (i.e. lowest interest and/or best benefits), you need to be 'low risk' and potentially highly profitable.

If you are higher risk and/or potentially less profitable you will probably only be accepted for the less good cards.

The things the CC companies will look at when deciding whether to accept you are likely to be: Level of income, level of debt, job stability, management of past credit/debt, etc.

Cycrow

The choose of credit card should be based on what you actually need from a credit card.

What do you plan to use it for ?

If you plan to use it as a form of credit where you keep a balance on the card, then one with a lower interest rate will be better.

if you plan to use it for your day to day spending, and clearing it each month, then one with benefits, like Cashback, would be a better choose.

If you plan to make some big purchases, then a card with 0% on purchases would be a good choose.

of course, your credit status could limit what you will be accepted for.
if you haven't had a credit card in the past, and lack credit history, this will limit you