How to compare credit cards?
Here's a breakdown of features and charges you should look at when doing a credit card comparison.
Annual fee
What is it? The amount you'll have to pay each year just to use the card.
What you should know: Higher annual fees usually mean more perks and rewards.
Cash advance rate
What is it? The interest rate you’ll pay if you take cash out or make an equivalent transaction.
What you should know: This is often the highest interest rate on a credit card, so avoid cash advances unless it's an emergency.
Credit card network
What is it? The payment system that processes all your credit card transactions. Visa, Mastercard and American Express are the key credit card networks in Saudi Arabia.
What you should know: Banks and brands partner with Mastercard and Visa, so you'll see their logos on your cards. American Express issues cards and has its own network for processing payments.
Foreign transaction fee
What is it? The fee you'll be charged on purchases made in a foreign currency overseas or online.
What you should know: There are plenty of cards on the market with 0% foreign fees.
Interest-free period
What is it? The amount of time you'll get before you're charged interest on your purchases.
What you should know: More days give you more time to pay off your balance so you won’t be charged interest.
Minimum repayment
What is it? The lowest amount you need to pay by the due date to keep your account in good standing.
What you should know: You can always (and should try to) pay more than the minimum amount. But paying less can lead to late payment fees and hurt your credit score.
p.a.
What is it? This abbreviation of “per annum” is used for credit card interest rates, because the annual (or yearly) value is shown.
What you should know: As an example, the interest you’d be charged over 12 months would be about 20% of your balance on a credit card with a 20% p.a. interest rate.
Purchase interest rate
What is it? The amount of interest you'll pay if you don’t pay your card off in full.
What you should know: The lower the interest rate, the less you’ll pay in potential interest.
Rewards program
What is it? Offers points and perks that you can earn for your spending.
What you should know: Common features include points, insurance, lounge passes and premium services.
