by Nayab Sh

Created on: March 08, 2009   Last Updated: February 24, 2010

Have you decided to apply for a credit card? That's nice. No doubt credit cards are useful and convenient way to pay for services in daily life. It provides you finance flexibility if used sensibly. One can use it for daily purchases, for business dealings, for managing debt problems and even for charity purposes. It can also be used abroad in foreign currencies through online network facilities. But before applying for a credit card you must consider certain factors particularly if you are living in UK. As UK has one of the most competitive credit card market in the world so searching a credit card that best meets your needs could be a time consuming process. So must keep in mind some special tips while choosing a best credit card. Info policy available with each credit card can also serve as a guide to compare between different credit cards.

1- Status Of Individual

Choosing a credit card depends upon individual status. It means whether he or she is a student, a businessman, a middle class man, a retired person or a widow. Different types of credit cards suit different persons. Standard credit card is available for everyone over 18 years while premium credit card offers comparatively higher credit with lower interest rates and some extra benefits. So you can choose a credit card accordingly to your priorities.

2- Reason For Applying

Why are you applying for credit card? This question matters a lot. Is it for managing your financial pressure or for business dealings. Do you want to enjoy special offers and incentives available with it or you want to use it for emergency situations. Whether you want to reduce interest payment on other existing credit card through balance transfer or want to donate for charity programs. Ask these questions to yourself before deciding for credit card. If you are able to clear the bill in full each month then annual fee and length of interest free period are more important factors than interest rate. But if you want some cash advances to manage financial burden then you must consider fees for cash advances and related interest rate (higher for cash advances).

3- Interest Rates And Interest Free Period

You must have a complete detail of interest rates alongwith additional information about length of interest free period, interest calculation method, introductory low rates offer and APR. APR is annual percentage rate which expresses the cost of using credit card. APR is an important factor to compare credit cards. Interest rates

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