If you have a credit card, you may wonder whether you might be better off swapping to a different lender. There are different things to consider and it is worth having a think before you decide whether this will be a good idea for you.
The interest rate can be a big influencer when it comes to credit cards. They can often high interest rates compared to other types of lending and therefore it is a good idea to check them out and see how your card rate compares to others. If you always repay the card in full each month, it is likely that you will never pay interest on it. However, you never know when you might not be able to afford to repay it, so it is always worth keeping in mind how much the interest rate is, so that you will be able to keep that in mind. If it is extremely high, then you might decide that it will be better to swap to another card just in case you do not repay it in full. If you do tend to owe money on your card, then the interest rate will be extremely important. It will be something that you will need to think about and if you can get a lower interest card, then the borrowing that you are doing will be cheaper. So swapping to a lower interest card, could be particularly beneficial for you.
Some cards offer rewards to their customers. This might be some sort of points to spend on things, discounts, air miles or even cash. They can be very enticing and great for some people. If you always repay your card in full, then they can be great for you. This is because it is often the case that these cards will be higher interest so, if you have an outstanding balance, the value of the reward will not make up the extra cost you are paying in interest compared with standard cards. However, it is well worth checking as this might not always be the case. It is wise to be careful with these though. You may use the reward as a way to justify spending more money than you normally would or more than you can afford because you are getting some money back. You do not want to do this as the money that you are getting back will only be a small amount – probably a very small percentage of what you spend. Therefore, you need to think to yourself, being very honest, whether this might happen with you or whether you will be self disciplined enough to just use the card as normal.
It is worth having a look into the lender as well. Look at some information about the card issuer and what they are like. You might be especially interested to find out what their reputation is like, how well they treat their customers and things like this. You might be able to read some reviews online but remember to use trusted sites and think about the review carefully. Note what people are saying and whether things that they like and dislike are important to you or whether they are not. It is also good to speak to friends and family about it if you can. Talking about finance can be difficult with some people but it can be really handy if they can give you some useful advice and feedback. People are often very willing to help you as well, particularly if they have had a particularly good or bad experience that they would like to share.