How to Choose My Best Credit Card

There are hundreds of credit cards available. Choosing the best one depends on how you intend to use the card PLUS a basic checklist relevant to either approach.

1. Either you probably won't be paying off everything you owe each month.
   
2. Or you intend to clear your debt every month.

Basic Checklist

Are there any introductory deals

Is there an annual charge? If so what do you get in return?

What are the extra charges / hidden catches

When does the interest charge start ie how long is the interest free period?

What is the spending limit?

What are the special offers?

Is there a Charity/ Affinity scheme?

How do they rate for your holidays?

Always check the terms and conditions

So now you can read more specifically depending on which way you intend to best use your card. This will be in either of the following two ways:

As outline above, the major factors to consider when you come to actually choose your best credit card is probably either

1. Either you probably won't be paying off everything you owe each month.
2. Or you intend to clear your debt every month.

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You don't intend clearing your debt regularly

If you won't be paying off everything you owe at the end of each month then the questions to ask about the card are:

• What is the interest rate The lower the better. See below
  
• Is there an introductory interest rate? If so what will it revert to?

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What is the interest rate

....ie what are you charged on any outstanding balance you owe. This will be represented as a monthly figure - say 1 or 2 % or as an APR (Annual Percentage Rate)

NB The APR includes any fees charged so it won't necessarily tally with the monthly figure.

If you're really just looking to borrow money it may be cheaper to get a proper loan. See other ways of borrowing

However if you've got the time and effort you could keep changing cards every few months by shopping around for the best introductory rate. This could keep your interest rate on the debt at around 5 to 10%.

In addition to these see the basic checklist.

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You intend paying off everything you owe

If you're going to be clearing the debt every month then the best interest rate will be irrelevant (because it's only charged on what you owe). If so:

How soon do you have to send payment?

This is another way of saying how long is the interest free period. Usually you have 3 to 4 weeks after receiving the monthly statement. The longer the better - in case you're late paying and are charged interest.

You definitely don't want to pay interest from the date you brought the item - which some cards charge.

In addition to this see the basic checklist.

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Credit Card Guide

What is a credit card... The usual terms... How to apply for a creditcard

Interest and Credit Cards... Low interest credit cards... When does the interest charge start... How interest is calculated.. How to get interest-free credit... The APR and Credit Cards...

Introductory deals / special offers... Crad Introductory interest rates...

Card Purchase protection... Faulty goods... Anti fraud guarantees... Emergency cards / cash... CreditCard Protection... Stolen cards / Fraud... Internet crad fraud...

Reward schemes... Cashbacks... Cash withdrawals... Holidays and your card... Free Travel Insurance...

Never heard of the card issuer?...

Minimum payment amounts... Credit Card Statements... Annual Fee... Late Credit Card payments... Credit Limit...