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to balance transfers is of primary importance. If you do not have balances to transfer then clearly the ongoing charge rate is the important factor. It becomes more complex if you wish to charge future purchases and also make a balance transfer. If this is the case, then you need to pay close attention to the terms of your card.

5. Do you fully understand your interest rates and how payments are applied to outstanding balances? Generally speaking credit card issuers always apply payments to reduce the balance of the amount outstanding that carries the lowest interest rate. That means that if you have an introductory interest rate of say 0% on balance transfers, but your future payments are charged at an interest rate of say 17%, any payments you make will be applied to repay the money that you have zero interest payments on. Over time, all of you remaining balance will be money subject to the higher rate.

6. If you are making a substantial balance transfer, does your card require you to make ongoing purchases to retain your favorable rate? Read the conditions of the card very carefully. It used to be easy to make balance transfers at a very low rate, then make no further charges on a card, and over time pay off the balance at what became a very favorable loan rate. As more people used this tactic as a tool to lower their repayment costs, credit card companies have tightened the rules and often require you to use the card for a minimum number of purchases over a billing cycle.

7. Will you repay your balance in full each month, or just make the minimum payment? If you are in a position to pay off the entire balance of your credit card each month, it is a great idea to do so. This is the ideal way to use your credit cards. However, if you clear the balance every month, the annual fee charged becomes a lot more important than the interest rate charged on your balance. If you have good credit and clear your balance, a credit card that does not charge an annual fee is usually always the better choice.

8. What kind of purchases do you intend to make? Will you use it frequently for day to day purchases, or rarely for major purchases. If you rarely use it, but want to be able to use it for large household purchases, then the spending limit will be your deciding factor.

9. Will you use your card often or just for emergencies? If you really only intend to use your credit card in an emergency, and you don't intend to use it regularly, you should avoid any cards

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