Switching Credit Cards: best tips

When getting a new credit cards there are certain things to look for to make sure you get the best deal.

1. Which Rate is most important?

Which is most important a low introductory rate for 6 or 12 months or a low Annual Variable Rate? If the card is going to be long term, don’t be too excited about good deals for first 6 months.

2. How long is the introductory period?

This can range between 3 and 12 months. If possible, I look for 12 month deals, it save the hassle of switching too often.

3. Do you get points for spending?

This is relatively insignificant if you are using it to move money around. But, if you spend a lot on a credit card it can be an important consideration.

4. Online Facilities?

Can you apply and check balance online, most credit card companies offer this feature.
5. Adverse Credit History?

Do you have any adverse credit history, this will reduce the number of options that you have.

6. Costs of Switching?

Are there any costs associated with balance transfers. It is becoming increasingly common for credit card companies to charge a balance transfer of 2-3%. It is hard to find a company who will do it for free. This is because of so many people who take advantage of the 12 months at 0%

7. Do you Really need it?

Don’t apply for a credit card just for the sake of it. It is best to only apply when you need to transfer money from a high AVR. Don’t be taken in by the promise of free gifts. If you have too many credit cards it may affect your ability to get them in the future.