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by: SamEvans
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There are a number of major points to think about when looking for a new credit card, which this article will guide you through, each of which will help determine the type of card you choose, as well as helping you look at your card in the long term. So let's get down to business.

What are you going to use the card for? And how are you going to make repayments? There are many different types of cards available each of which benefit customers in various ways. If you are looking to get cash back on your shopping, for instance, you will find that signing up to cards such as the Abbey Card, or those offered by leading supermarkets, for example Asda, will suit your needs best. However, if you are looking for rewards on petrol or air miles, a card such as the Morgan Stanley credit card or the Lloyds TSB Duo card would be more suitable. When applying for any card you must consider how you are going to make repayments. The only way to get the best out of any card is to pay in full every month but this is not always possible for everyone. If your finances won't stretch to paying in full then you will need to look carefully at the APR after any introductory period has ended and plan to always pay over the minimum monthly repayments.

After some simple research you will build up an idea of the type of cards on the market, and the type of card that will be of most value to you. There are many different types of card, each aimed at different people with different needs; there are reward cards, credit cards and even pre-pay cards. As already briefly mentioned, you will need to look at how you are going to make monthly repayment - ideally above the minimum fee - and your particular spending habits; i.e. if you buy a lot of petrol you would be missing out by getting a card that rewards on shopping.

If you are applying for the first time it is worth knowing how to get the best out of your card once you receive it. It is best to make regular, smaller purchases and pay back more than the minimum payment each month. Whether you are able to get a card, and which cards you will be able to apply for in the future, will depend on your credit rating. Credit ratings are determined by companies such as Experian who will examine how you manage your repayments and assign you a rating. Lenders will then use this rating to determine what credit to offer you. People who only meet their minimum repayments will never be offered benefits.

Be aware that if you are planning to switch from one card to another in order to take advantage of the 0% period as it can have a negative affect on your credit rating - wait a while after the 6 months period is up and take advantage of what each card offers before you move again. Look into the rate of APR when the card's 0% period runs out and ask yourself if you will benefit from having this card once the 0% period runs out or will you qualify for greater charges and more of an inflated APR than if you were to simply apply for a standard card with less of an enticing introductory offer in the first place? In order to decide whether to take advantage of a 0% offer consider whether you are thinking of transferring your balance to another card or after the first 6 months 0% or are you just intending to take a break from your interest to pay off the balance for 6 months?

The rate of APR is also one of the most important things to consider when applying for a credit card. The rate of APR will come into effect once the 0% period is at an end. You will need to think carefully about whether the rate of APR is reasonable in comparison to the benefits you receive once the introductory 0% is over. Credits cards with no introductory offer and fewer benefits will have a lower rate of APR, which is another thing to consider before making a choice. It could be better to take a card with fewer benefits so that you can manage the lower repayments.

About the Author

Sam Evans has written a number of online reports. These include Credit information relevant online reports and reading all the small print.

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