Card type

Consider whether a credit card is right for you. Some people prefer to use a debit card, which offers the same convenience and acceptance, but without the risk of debt.

If you're a business looking for credit cards for your employees, you may also consider charge cards. Charge cards are like credit cards, but require full payment at the end of each month and therefore don't accrue any interest.

See our article on Cards 101: Credit, Debit and Charge for more information on the different card types.

Features

The main features to look for in a credit card are:

• Purchase rate
• Interest free period
• Annual fee

These three properties tend to be balanced: a card with a long interest free period or a low annual fee will usually have a higher purchase rate to compensate.

Identify the features that are most important to you. If you're the sort of consumer who usually has a large balance which is paid off over time, consider a card with a low purchase rate. If you like to pay your balance in full each month, the purchase rate is less important: instead, look for a card with a good interest free period.

Financial institution

If you already have some banking with a particular institution, consider their range of credit cards. Sometimes, banks offer special rates for existing customers.

Also consider what might happen if you have a problem. Is there a branch nearby? Will you be able to get assistance if you require it?

Balance transfer

If you have an existing credit card balance, you may be able to save some money by choosing a card with a good balance transfer deal. Some cards offer interest rates of 0% for periods of six to twelve months. Others offer very low rates for the lifetime of the balance transferred.

Make sure you understand what the interest rate will be once the offer ends.

Travel

If you're likely to take your card overseas, there are a range of other factors to consider including international fees, acceptance and travel insurance. These are covered in our guide to Choosing a Travel Credit Card.

Consumer credit insurance

Some cards offer additional credit card insurance which will protect you if you lose your job, become disabled or die. If you're considering insurance, make sure you understand what the policy will cost you over the lifetime.

Rewards

Reward programs are incentives to encourage you to obtain and use a card. While there are some good reward programs available (see our comparison of twenty-two Australian reward programs), don't be suckered in. The bank usually factors the cost of the rewards program into your annual fee or purchase rate.

Fees

Every financial institution publishes a product disclosure statement (PDS) for their credit cards, usually on their website. This will detail the terms, conditions and fees for using the card.

As a minimum, you should understand the fees you may be charged for additional statements, going over your limit and late payments.

Also check out our fees guide.

Other information

Also try our credit card comparison table and our 'Help Me Choose a Card' tool.

What next?

• Compare all credit cards
• Read other articles
• Read credit card reviews