by Ethel Smith

Created on: March 05, 2009   Last Updated: October 21, 2009

With the wealth of credit cards available nowadays it can be hard finding the right card for you. Think about your way of life and personal needs. There is little point taking out a credit card that offers rewards such as air miles, if you never travel. Similarly, a credit card designed with the balance transfer functionality at the forefront will be pointless if you always clear your credit card balance each month.

Your personal credit card requirements.

Consider these questions. How do you usually use your credit card?. If you have never had a card before, why are you thinking about applying for one now?. What do you want this card to provide?. People, and their lifestyles, are very different. What card suits one person, may not another. Bear in mind:-

You.

Your spending patterns.

Your finances.

If you do not spend wisely on your credit card, and choose one that is inappropriate, it could cost you dearly. If you are not going to clear the outstanding balance each month a card which has a consistently low APR, annual percentage rate, will be good for you. Always check the APR, as it will give you a more realistic and accurate figure of the potential costs than the monthly rate of interest would.

If you have a large outstanding balance on your credit card, moving this blance to another card could pay dividends, especially if you know that you can clear this balance in, say nine months. Choose a balance transfer credit card with an interest free period of nine months and you could be laughing, as long as you adhere to the agreement.

Rewards cards, or not?

Reward and loyalty credit cards have come a long way in recent years. If you are on a tight budget, with little disposable income, a reward card will probably be a bad idea. Still, if you have a good income, and regularly spend huge amounts of money on your credit card, such a card could be just what you need.

Some cards offer cash back whilst others offer, discounts and the like. Be careful though as often the best reward cards are only open to those with a very good credit rating. Have a bad credit score and the only reward card, that will accept you, will charge you a huge APR. This could be as high as 40%. If you already have difficulty managing your finances you would be wise to stay well clear of such cards.

Managing your account on-line.

Many of the best credit card offers are only available if you are prepared to apply and manage your account on-line. Although the Internet is relatively secure there

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