Should I get my Credit Card from my Bank?

It can often be tempting to stick to our regular bank when we are applying for new financial products. There are advantages to doing this, but there are also disadvantages as well and it is a good idea to be aware of both so that you are able to make sure that you doing the right thing.

No ID Checking

As you are already a customer with your bank, you will not have to have an ID check when you apply for a new product. This means that you will not have to provide documents such as utility bills, driving license or to prove who you are because they have already checked that information. This will save you the hassle of finding that documentation which can take time and will slow the application process down.

Might be Easier / Quicker

As the bank already has your personal details this might also speed up the application process. It can be easier for you as you will not need to sit with them and give them this information or fill in forms with it in as they have it already.


It is well worth comparing the cost of a credit card between providers before you decide to go with your bank. Even if the plan is to repay it each month and not pay any interest on it, it is good to check to see whether the interest rate is competitive. There is always a risk that you might have to pay the interest on the card and therefore you want to check carefully to make sure that you are aware of the interest rate. Most will be competitive. Also check out if there are any other costs that you will need to be aware of that might have an impact on your decision as well.

Other Features

It is also worth comparing other features of the card as well. For example, there are some credit cards that will give you cash back when you use them. If you use a card a lot, then you might think that it will be worthwhile looking for a card that will provide you with some cashback. You will need to be careful though as it is possible that these cards will be dearer compared with cards that do not offer cashback. You could even find that it will be the case that you will be worse off because ethe extra interest costs will more than outweigh any cashback you get, although if you are planning on repaying in full, this will not be the case. Having cashback can also tempt some people to spend more money and this means that they might find that they are justifying buying lots of things that they do not need by thinking about the very small amount of cashback they will get as a result.

There might be other features on the credit card too, it is good to compare them carefully in order to make sure that you understand what each is offering and what their similarities and differences are. It can be tempting to go with your bank because it is convenient but you need to make sure that it is offering you good value for money as well, before you go for it and do not check first. It can take time to do these checks and you may feel that it is a bit tedious and you may rather not bother, but it can be worthwhile when you get a credit card that you are sure will offer you really good value for money.