Credit card comparison in the current scenario with so many varieties available in the market could be quite a confounding task. Some credit cards seemingly have a better deal but the truth is always not the same. Moreover, a good credit card for one customer need not be as good for another depending on the priorities and what the credit card has to offer.
Annual Percentage Rate
This is a standard factor that should be considered for credit card comparison. If you have a high outstanding due on one card, then a good option for you would be to go for a balance transfer that offers 0% APR for an initial term longer than a year. However, after the initial term too, credit cards with lower APRs are always more preferable than the ones with higher APRs, unless you are one of those who needs to be forcibly checked from spending a lot. A low APR usually suits entrepreneurs of small businesses who might miss payment dates in the process of optimizing cash flows for their business. It shouldn't cost them a lot to miss the payment date for a week or a fortnight. If you have a good credit score and are sure of being consistent with your monthly payments without fail, then this is not as a big a factor for you.
Cash Back Offer
Credit cards which have a cash back offer are always more preferable than those which do not have it. However, there are varieties in that category too that should be considered for credit card comparison. For example cash back only upon request, or variable cash back only at select merchants is not all that attractive. Flat cash back of up to 5% at groceries and gas stations would be the ideal case. Most credit cards offer 1% on all purchases and then variable amounts for other purchases. Credit cards with cash back offers without a maximum cap are the best as you get a straight discount in every purchase of yours irrespective of what your expenditure is.
Some issuers like MasterCard offer insurance coverage which should be given priority during credit card comparison. The coverage usually includes the standard fraud liability coverage and also additional benefits like lost baggage replacement, travel safety insurance, accident insurance etc. This means you get the coverage without actually having to make a monthly premium payment like you do normally for insurance. Besides, they also help you during critical emergencies.
This is an important aspect of credit card comparison. Cards like Visa and MasterCard have a lot of inherent security measures to deter frauds. In fact some credit cards from MasterCard have a 24 X 7 monitoring system to see the expenditure patterns to detect frauds early. Identity theft has been a major concern and with higher credit limits, you must be able to trust the mechanisms of your credit card to ensure that you are safe from fraud attacks especially online. Other factors for credit card comparison include special discounts with airlines, restaurants and hotels which will reduce your travel budget.