They both have some of the same benefits of credit cards with 0% interest and 0% balance transfer cards, but how do you know whether you would be better off with an all-round or a purchase credit card? Read on to find out about some of the most important features of both of these cards.
A purchase credit card is often a good choice for people who shop regularly using their credit card. This is because you can generally get an excellent interest free purchase period when you first take out the card; up to around 13 months. This can be particularly useful for people looking to spread out their payments over several months as it means you don’t have to worry about interest building up.
Purchase credit cards also usually come with a comparable 0% balance transfer period, which is also useful for people who use their cards regularly as it allows them to transfer the balance of an existing card onto their new one (for a handling fee) and then pay it off at a 0% rate of interest.
All-round credit cards are relatively similar to purchase cards in that they also come with interest free purchase and balance transfer introductory offers. However, they do differ as they generally come with a lower balance transfer key and a longer 0 balance transfer period. To make up for this extension, the 0% purchase period is generally shorter. This means that all-round cards are likely to have a slightly different appeal to purchase cards.
Common questions about credit cards often relate to the issue of APR: it’s important you compare interest rates on purchase and all-round cards as this is what tells you how much interest you will be charged following the end of the introductory offers. The APR can vary by several percentage points depending which card you choose, so it’s certainly worthwhile looking in detail at this before making your choice.
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