Personal Finance

How to choose a credit card

With the way modern finances work, it’s becoming incredibly difficult to go through life without owning and using a credit card. In fact, many experts argue that for anyone looking to make large purchases or manage their finances in an intelligent and safe manner, a credit card is indispensable.

However, there are so many different types of card available to consumers that it can be incredibly difficult to choose between them. Here we take a look at exactly what it is you should be looking for in a credit card and how to get the best deal.

Tailored to your needs

The first thing to do when thinking about applying for a new credit card is to think about how you’re going to use it and what it’s actually for. Every credit card is slightly different and should be used for different things. For instance, a 0% balance transfer card should be used to clear existing debts on cards that are being charged a high amount of interest, while a 0% purchase card is for someone that’s looking to make a few purchases but can’t afford to pay it off immediately at the end of the month.

Work out exactly how you’ll use the card then apply accordingly. If you’re going to be abroad a lot, apply for a fee-free foreign withdrawal card. If you need a long time to pay off the card, go for a low rate credit card.

Limit yourself

A mistake that a great number of credit card applicants make is getting a card that gives them too much scope for spending and can be too easily abused. Try and limit yourself when looking at credit cards.

Remember that when using such cards, you’re not actually using your own money and that everything will have to be paid back with interest in the long run. Consequently, don’t stretch yourself and instead apply for a card you won’t have troubles meeting the monthly repayments with.


Finally, a number of cards offer great benefits to those that apply. For instance, American Express Platinum Credit Cards offer users an incredible number of benefits and rewards for spending on the card. These can really make the difference when it comes to choosing a card, and each should be considered carefully.

However, don’t make a decision based solely on benefits, ensure that all other aspects suit your needs as well, otherwise you may find yourself with a rotten deal in the end.

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