by Harry Lacey

Created on: March 05, 2009   Last Updated: March 31, 2009

Ten Tips to Finding the Right Credit Card

Finding the right credit card isn't easy. In the current financial climate, you want to make sure you're getting the best deal on offer. So what are the most important factors to consider when choosing?

1. Consider carefully how you're planning on using the card. It can sometimes be tempting to just go for whichever card has adverts all over the TV. What a lot of people forget is that different credit cards can be used for different things, and the best credit cards for some people aren't always the best for others. Balance transfer cards are great if you've got debt piled up on one (or multiple) cards and want to shift it to avoid paying too much interest. A balance transfer card will offer you a certain period of interest-free repayment in exchange for your debt. So, if the interest is starting to kick in on one card, consider taking out a balance transfer card and moving it over. It could make a huge difference, and some people swear by it. On the other hand, if you want a credit card simply for purchases and aren't sure whether you can afford to pay off the balance in full every month, then think about getting a 0% purchase credit card, which offer 0% interest for a fixed amount of time. Marks and Spencer, for example, offer a card with ten months 0% interest. If you travel abroad a lot, you might want to consider cards that won't charge you for foreign use. There are a number of different types of cards available, and it's important you choose the right one for you.

2. Think about getting a credit card with a reward scheme. Cash back credit cards, one of the most popular reward cards, do exactly what they say on the tin - they give you cash back every time you spend. If you know how to use them they could prove to be the best credit cards for you. As long as you set up a direct debit to pay them off in full every month (so you don't have to pay interest), you should be fine. The money they give out is completely flexible and tax-free. Other card companies offer air miles with purchases, which is great if you do a lot of travelling, or, alternatively, you could consider a credit card that gives you reward points redeemable in high street shops.

3. Take the time to search for the best possible deal.
There are some brilliant offers out there if you know where to look. There are loads of websites that let you compare credit cards, and it's often best to use them if you're searching for a new card. Sites like www.moneysupermarket.com
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