by Maria Papadopoulou

Created on: June 23, 2010

With a variety of credit cards in the market, making a choice can be quite difficult. While everyone has different needs and what works for someone may not work for someone else, there are some basic things you need to keep in mind when looking for a credit card. Knowing what to look for in a credit card, will help you make the right decision for yourself.

What to look for in a credit card

1. Hidden fees

When looking for a credit card to apply for, one of the most important things you need to check is whether there are any hidden fees involved. Annual fees, maintenance fees and processing fees can cost quite a lot, so make sure the credit card you will apply for is not associated with any of those fees. Read the fine print to be absolutely sure you know all the facts.

2.  Rewards programs

A credit card with reward programs offers you a nice gift with every purchase you make, or at least,  for many of the purchases you make. Depending on the credit card, those reward programs may involve getting cash back or travelling for free to a desired destination. Choose the rewards program that suits you best and let yourself celebrate your purchases for a change.

3. Grace period of at least 20 days

Without a grace period of at least 20 days, you will end up getting charged with interest, before you even get your next credit card bill. Therefore, it is important to choose a credit card which will give the enough time to make your monthly payments.

4. No interest rates on purchases

Another thing you should look for in a credit card is for no interest rates to be charged on purchases. Prefer credit cards that allow you to make purchases without charging you with high interest rates for them. Even if this convenience is offered to you only for a year, it is however worth trying, as it can help you save a lot of money.

5. Cash advance option

If you want to use your credit card to withdraw money from an ATM, then you might want to choose a credit card with a cash advance option. Just make sure you do not overdo it, in order to avoid getting charged with high interest rates.

6. Online payment option

If you rarely ever have the time to go to the bank to pay your bills, then look for a credit card that you can pay online. This is will save time and energy and will ensure you won't be charged with late fees for paying after due date.

Following the tips above, will help you make an informed decision that will suit your needs in the best possible way.

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