by Kevin R Newell

Created on: March 06, 2009   Last Updated: December 16, 2009

Choosing the right credit card is a very difficult task with so many lenders willing to offer you one. You need to find out which one best suits you. Here are ten tips that will help focus your mind and decision on choosing the best card for you. Always remember that your credit rating will effect the amounts, and some terms and conditions that you may be offered.

1. Over the Limit Charges This charge occurs when you go over you credit limit and can sometimes hit you with a very large charge. How ever giving that you have the option to go over you credit limit can seem an added bonus it will cost you in the long run. Some cards will not let you go over you limit others do. For example if you are in a shop buying goods or services with you card and you are allowed to go over your limit it will save you the embarrassment of having your card declined in front of staff and customers but this saving grace remember will cost you. Be sensible and keep track of your card usage and your limits. The better you manage your card the better it will work for you.

2. Late Charges Nearly all credit card lenders will have in place set fee for late payments, this is there way of making more money out their good will as to say to lend you the money in the first place. It also acts as an deterrent for borrowers to make late payments. The charges will vary for different lenders and some may even vary on the amount you should of paid back or on the amount of your total balance. Late charges have been under the spotlight a lot in recent years with some lenders charging very large charges. They really should only be charging a maximum of 12 to cover any administration costs of you not paying on time and in some cases you may be able to claw back some of this cost if it seems a bit too much. Also keep a watch on your interest rate some lenders have been known to raise the interest rate once a lender starts making late payments.

3. Annual Charges Annual charges are usually found on those credit cards that offer large rewards or to those borrowers who have a bad credit rating. You should always check the small print of all credit cards to make sure that you do not get these charges as they can be quite large. Most cards these days will happily not charge you annually but some still do. Also be aware that even if you do not use your card you will still be charged your annual amount. This type of card unless it has a fantastically low interest rate will not benefit those borrowers who

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