Credit card comparison websites prove to be slightly confusing

June 19, 2007

When comparison websites were first introduced they were like a blessing, helping consumers to save as much money as possible. However with so many of them available now it can often be confusing for consumers to find what they are looking for and that is certainly true for those looking for a good deal on a credit card.

So just why are comparison sites so confusing? Well whilst most have managed to get consumers a better deal, others do not seem to cover all of the market. This means that whilst you may still save a little money, you still might not be getting the best deal possible.

Comparison websites are there to help you to see what else is available for your specific circumstances. The best ones are obviously the ones which cover the whole market and unfortunately we tend to assume that all comparison websites cover everything. This is just not true and you do need to shop around to find the best site.

The reason why many comparison websites don’t cover all of the market is because they think that they can get away with it. By providing quite a few results you are hardly likely to question whether the site has covered the whole market and you take what it tells you to be the best deal. You have to think that comparison websites are commercial websites and they are under some pressure to increase their profits.

The way in which comparison websites make money is by linking the consumer to another website. So when you search for a credit card, if Capital One came up and you were directed to their website, if you chose to sign up the comparison website would earn commission. Now the amount of commission which they earn differs on the companies which they are advertising. Some will pay more than others and so that is why sometimes their results come out on top and some companies are not mentioned at all.

Overall comparison websites are generally extremely good. However, you do have to be careful to find a well respected one as not all of them will give you the best deal.