Tue 10 January 2017 Tue 10 January 2017

The best credit card for you will depend greatly on a number of factors. For example, your spending habits, if you pay your snabblÄn balance off in full each month, if you want to transfer balances onto the new card etc.

Interest Rates Perhaps the most important factor for most people is the interest rate that the card offers. This is usually referred to as teh APR (Annual Percentage Rate). If you don't pay your credit card in full every month then the APR of the card will almost certainly be your primary consideration. The interest rate will also be important if you are planning to consolidate your current credit card debt onto a new, lower interest card. Many credit cards have special offers for such balance transfers. It is common to see very low interest rates for balance transfers for the first six months you have your card, or sometimes even longer.

You can also look out for credit card offers where there is no interest for the first six months. This is often on any balances you transfer to the card but can also sometimes be for purchases too.

As with most kinds of credit, the better your credit rating, the lower the interest rate you will be offered. If you are unsure of your current credit standing, go to Consumer for a free credit report and score. For further information on credit reports, visit our Credit Reporting section.

Annual Fees You will find that some credit cards charge an annual fee, usually up to $100, for use of their card. This is often the case with higher end cards such as platinum cards, and also with some rewards cards. There are, however, many cards with no annual fee. When deciding whether to choose a card with an annual fee, you should weigh up the extra benefits you get with the card to see if it is worth the fee. For example, you may get a discount companion airfare with an airline card, or you may get car rental insurance, both of which could be worth the annual fee you have to pay. If you are looking for a low interest card and find one with an annual fee, it may be worth working out if the lower interest rate on the card in effect pays for the annual fee. For example, if you expect to sve $100 in interest charges with the card and the annual fee is $50, you will still be better off, even taking into account paying for the annual fee.

Other Fees You may also want to consider other possible fees associated with credit cards. For example, you will have to pay late fees if you are unable to meet you minimum payment each month. If you are a frequent overseas traveller, you may also want to look into the different foreign exhange fees between the cards you are considering.