Today’s market has seen Credit Card providers offering all sorts of incentives to apply for their Credit Card. This competition for your business has provided us with many great deals, but can also be overwhelming with all the different cards available.

There are several important factors to consider when deciding which Credit Card is best for you:

Age
• Credit Ranking
• Spending needs and habits
• Income
• Special Interests

Before you choose a credit card, you need to ask yourself a few important questions about how you will use the card. By understanding some important factors, you should be able to find the right card to suit your needs. By selecting the right card, you can save hundreds, and maybe even thousands, of dollars.

The main things to consider are: What is the interest rate? Does it have an Annual Fee and if so, how much? Does it offer interest free days on purchases? Does it have a different rate for balance transfers? How long does the reduced balance transfer rate apply for? Are there any reward programs with the Credit Card?

Interest Rate: Probably, the most important aspect when choosing a credit card is to determine if you plan to pay the card off each month before any interest is charged, or if you use the credit card as a source of credit and pay it off gradually.

If you are the latter, a credit card which offers a low interest rate is best for you. If your monthly balance is $2000, and are paying 18% compared with a card that charges only 6.99%, this is equivalent to a saving of $220 per year! Many companies now offer Credit Cards with interest rates as low as 5.99%, whilst some are as high as 19%. There are some great offers currently for

low interest rate Credit Cards.

However, if you are a person who pays off the balance before the due date, then the number of interest free days if a more important factor to consider than the interest rate.

Annual Fee: The next important factor to consider is the Annual Fee. There are Credit Cards now which offer no annual fee at all, whilst some can be hundreds of dollars. Some providers choose to waive the annual fee for the first year as an enticement to new customers. But be careful, as quite often, cards with no annual fee can sometimes have a higher interest rate.

Balance Transfers: In a bid to try and get your business many providers now offer great deals for balance transfers. Some offer 0% interest on balance transfers for specified time periods. Some even offer this for the life of the balance. If you have a large credit card debt on a high interest card, you can save you hundreds of dollars in interest payments by transferring to a card offering 0% or even low interest balance transfers.

Rewards: If you do most of your spending using your credit card and regularly pay it off each month then you should consider the benefits from a credit card offering a rewards program. Often rewards credit cards have higher interest rates or annual fees than other types of credit cards. However, interest rates are not important so long you pay the bill each month and the rewards could well exceed the card fee. Rewards Programs offer many things including Flybuys, frequent flyer and extra points can be earned by paying for everyday items including groceries, bills and even your rent.
One last important thing to consider is Late payment penalties. When evaluating which credit card is right for you, it is important to consider late payment penalties. If a late fee is charged, what is it? Some providers can more than double your interest charges if you pay late even by one day. It is definitely something to take into consideration.