A key fact to grasp is that there is no single "best" credit card for everyone. Different cards are suitable for different purposes. Your aim should be to choose a card which fits your current circumstances and will meet your financial needs.



For example, if you are currently paying interest on credit or store cards, then you need a credit card which offers 0% interest on balance transfers for up to 12 months. You can then transfer your debts from your other cards to your interest-free card, and aim to pay off the balance before the end of the interest-free period.

If you don't have any current outstanding debts, you could opt for a card which offers 0% interest on spending for an introductory period (again, cards offering up to 12 months are available). Put all your everyday spending on the card during the introductory period, and put the money you would otherwise have spent into a high-interest savings account. At the end of the introductory period, pay off all your spending on the card and pocket the interest you have earned. Note, however, that you will still need to make whatever minimum repayments are required by your card issuer during the introductory period.

You could also opt for a card offering cashback. This is a popular incentive offered by many credit card companies. It means that for every dollar you spend, your card issuer will give you back a small amount, usually in a single payment made once a year. The amount returned is calculated as a percentage of your total spending, and typically ranges from 0.5% to 2%. Some card issuers pay higher rates of up to 5% for purchases in some categories (e.g. gas or groceries) or made through certain retailers. Over a year you can earn hundreds of dollars in rebates, but always pay off your balance at the end of every month, or your cashback benefits will be wiped out by interest charges.

Finally, if you need to borrow over a long period at a low interest rate, consider obtaining a lifetime balance transfer card. With rates as low as 5.94% APR, they are as cheap as best-buy personal loans, but you choose how long you take to repay your debt.

Having decided on the type of card you want, take the time to study the market and see what is available. Do not simply fill in and return the next credit card application form that arrives in the mail. Credit card comparison sites such as www.finest-credit-cards.com make this easier for you by listing all current card offers for you to choose from, and also have a range of articles offering unbiased advice and information.