What to Look For in a New Credit Card

With many competing credit cards and a wide range of benefits, choosing a new credit card can be bewildering.

First, you need to decide why you'd like a new credit card. These are some of the reasons people look for a new card:

With the AA Credit Card, you'll be able to do all of these things.

Transfer a balance

Consolidating your outstanding balances from several credit cards, store cards, overdrafts and loans onto just one card can make your finances easier to manage.

Most credit cards offer favourable introductory interest rates for balance transfers. But you need to watch for extra costs and conditions – many providers will charge a transfer fee, and there is usually a transfer window for the offer (for example, within 90 days of account opening).

Use our balance transfer calculator to see how much you could save with an AA Credit Card.

Making purchases

If your primary reason for taking out a new credit card is to use it for new purchases, then look for cards with a special introductory interest rate. Many cards offer 0% on purchases for a limited period, giving you extra time to pay off your credit card balance before you start paying interest.

You must always pay the minimum payment on your credit card every month to avoid incurring penalty charges. To make sure you meet the payments on time, it's often worth setting up a direct debit from your current account.

Rewards and loyalty schemes

If you regularly make purchases on your credit card, it could be worth looking for a card with a reward or loyalty scheme. Many cards will award points for money spent. These points can usually be redeemed for vouchers, air miles, or even cashback, depending on the card you choose.

If you decide on a card for the rewards scheme, the key is to choose the reward scheme that you're interested in. For example if you are a frequent flyer, a reward scheme that gives air miles could be best for you. Use our AA Reward Points Calculator to see how your monthly spending can increase your points.

Annual percentage rate (APR)

The APR (annual percentage rate) is a key feature to consider. This is the interest that you'll be charged on any outstanding balance (after any introductory offers). The APR can range from 11.9% to 51.8% – the lower the APR the better. Check the competitive rates offered by the AA Credit Card.

Money transfers and cash withdrawals

You can take cash from cash machines or transfer money into your current bank account with your credit card. Most card providers will charge a fee for money transfers or withdrawals.

Important – read the terms and conditions

To properly compare the different features, benefits and rates of credit cards, it's important to find out the details of any new card before applying. Make sure you read the terms and conditions of the credit cards you're interested in.

AA Members
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Not an AA Member?
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