Unfortunately there is no one credit card that fits everybody’s needs and so finding the best one for you will require a list of what you’re looking for and a bit of research. Today, there are plenty of credit cards to choose from and many of them offer low introductory interest rates, fringe benefits and special offers. Surprisingly enough though some of them also have their drawbacks – which, needless to say, are not advertised as well as their good points! So what do you need to look at when choosing a credit card?

The Introductory Interest Rate
A lot of credit card providers offer an interest free period on balance transfers to new customers. This is a bid to persuade you to transfer existing balances over to their cards and while it sounds like a great offer, you also need to take into account the interest rate for new purchases – especially if you intend to use the credit card in the future. If the interest rate for new purchases is excessively high then you may not save any money by transferring your balances and shopping on the card simultaneously.

The Hidden Charges
All credit cards have some hidden charges that you neglect to think about when using them. These charges can include things like late payment fees, balance transfer fees and cash withdrawal fees. If you intend to use the card for balance transfers then make sure it doesn’t charge a fee to do the transfer. Similarly if you are going to be withdrawing cash from a machine on a regular basis then look for a card with low, or better still, no fees attached.

Benefits
Most credit cards today offer some form of insurance for your purchases however as with everything else in life some are better than others. Check the small print to see exactly what is covered if you intend to use the card for significant purchases. Other benefits can include card protection cover, repayment protection insurance and even critical illness cover. These benefits all come at a price but if they are something that you might be interested in then it is worth looking for the best deal.

Special Offers and Cashback
It isn’t unusual to find credit cards that award frequent users with a range of special offers, just for using the card. These offers can range from free flights abroad to days out at adventure parks to money-off vouchers for high street stores. Cashback credit cards go one step further and award their customers with free cash for every transaction they make on their card. The amount of cashback received is a very small percentage of that which is spent but at the end of the day it is free cash. These credit cards tend to have higher interest rates though and so are only really suitable for those who pay their balance off fully at the end of each month.

In Conclusion
In order to choose the right credit card you need to make a list of the things you need from it e.g. a long interest free period and no balance transfer fees if you intend to transfer multiple balances. You also need to decide what you’re going to use the card for primarily – for balance transfers or for future purchases. Once you have decided these things you can start to look around for a suitable card and with the variety currently on offer, you shouldn’t have a hard time finding one to suit your exact needs.