How to Compare Credit Card Offers

When you first step out and decide that you want to get a credit card, it can be a daunting thing.

“Why are they offering me 0% APR? – you may ask yourself. Or, you may question the reason in which they are telling you that if you sign up, you’re going to get all of these fantastic points for airfare and other things such as travel and gift cards.

ANZ Low Rate MasterCard

If you are seeking a good value credit card that offers you a low interset rate on balance transfers, and purchases, the ANZ Low Rate MasterCard should be a part of your comparison. It also features an affordable annual fee.

• $58 annual fee
• 13.24% p.a. on purchases
• 0% p.a. for 6 months on balance transfers
• Cash Advance Rate of 21.49%

Click here to read the ANZ Low Rate MasterCard terms and conditions

Why are they offering this?

Why is a credit card company willing to spend so much money to try and lasso you in if they are not going to be making money (in regards to the example of interest free credit).

The answer is very simple – They’re always going to make money.

First Impressions of Credit Cards

At first, it can be a bit scary. As a cynic, you may be saying, “they’re going to screw me over, nothing is for free, I need to be careful else suffer the consequences. – That’s a fair argument because we are led to believe in life that nothing is free and that whatever we want comes with a price. Fortunately for us, that is not the case when it comes to credit cards. We are given free things non-stop because of one very simple reason: they want us. They want us bad.

The simple about credit card companies is that there is a lot of competition out there and the thing that they want the most is to convert you into a user. Why? Because if you convert, you’ll make them money. Chances are, you’re going to buy things. That makes them money. The simple truth is that the more people that use credit cards, the more that the companies will make.

Credit Cards: The Catch

So, what’s the catch? It all really depends. The one thing to keep in mind is that the credit card company is going to make money. That is their goal. They are going to make as much as they can. Therefore, if they are giving you interest free credit, they might charge you a sign up fee or an annual fee. However, sometimes you’re going to find a credit card that has the whole package. “No interest, no sign up fee, no annual fee, etc, etc. – That sounds fantastic; however, ask yourself once again, how are they making money?

That’s something to look out for. They’re going to make money and something to read is the fine print of the credit cards. Make sure that it doesn’t say something about credit appearing after X amount of months. Or, if you forget to make a payment for one month, make sure that the credit does not shoot up to a cataclysmic rate. If that happens, though, do not fret. If you have a card from one company and you want to get a different one because you can get a better interest rate, consider getting a balance transfer credit card.

The reality is, they are going to make money no matter what, but they need you to make that money. So, when it comes down to it, they need you more than you need them. The competition is strong in the credit card niche and they are not going to stop trying to best each other. Sure, they may appear like they are losing money, but they are going to continue to make the best deal so that you sign up for them.

Look past the surface and realized that there is more going on. Ensure that you read the fine print so that when you’re comparing credit cards, you have all the information. So long as you know just what you’re getting yourself in to, you have nothing to really worry about as you sign up for the credit card(s) that you may get.

2 Responses

1. Terry Shoesmith Says:
   July 16th, 2008 at 3:07 pm

   I just got a letter from ANZ for a visa card. It said the interest rate would be 9.99%, 13.99% or 15.99%. How do I know what rate I will be charged? Sounds dodgy.

2. CreditCardFinder Says:
   August 3rd, 2008 at 8:52 pm

   the 9.99% and 13.99% would be introductory often, for example 9.99% for the first 6 months.

• Comparison of Top 10 Credit Card Offers

Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0