Comparing credit cards has been made easier in recent years with the introduction of the typical APR (Annual Percentage Rate) rate in advertising. The Consumer Credit Act of 2004 lays down the guidelines for credit card companies in the way they must calculate the typical APR. This rate is calculated by including the business the credit card company can reasonably expect to make. This includes interest charges and annual fees. Therefore the consumer can trust this figure and should use it as the basis for comparisons. Advertisers are legally required to show the typical APR rate along side any other rates used in an online advert. So, if for example, a balance transfer offer is being promoted then the typical APR must be shown in bold as part of the advert.
There are now many online comparison sites for credit cards which are an ideal place to start research. These sites will receive a commission for any successful applications made or may be paid on a pay per click basis, but nevertheless they are do provide an excellent resource. The danger is that if they do not have an agreement with certain credit card companies then these particular products may be ommitted completely. It is better to stick to the major quote engines such as Moneysupermarket which have a comprehensive list of credit cards available.
The online comparison engines will typically guide you to the product best suited to your needs by a set of interactive questions. The answers to these questions will determine which are the best type of products for your requirements. For example, if you do not have an existing balance and expect to pay off balances monthly then you are likely to be guided to cash back or reward scheme set of products.
A significant amount of people regularly change cards to take advantage of balance transfer schemes. These comparison engines are an excellent source of information on the latest and best deals available.