How to select the right credit card for you

choose the right card to get maximum benefits out of it

Choosing the right credit card to suit your needs and making it work for you can be a complicated exercise. You could begin by examining the credit limit offered by a credit card. This refers to the maximum amount the consumer may incur on his/her credit card before making his payment to the card issuer. Then, there is the time period, also known as an interest-free or grace period, which could range from 30 to 45 days.

Credit cards also come with different charges like interest costs on outstanding balances, annual charges, and lost card charges. There are benefits too. Many cards come with insurance, ATM facilities, stolen card protection and reward programs.

Before deciding on a particular card, carry out a quick survey of the features offered by various credit cards. For those who plan to pay their balance immediately every month, a card with a lower annual fee, a higher interest rate and a longer interest-free period is the best. Try and match individual requirements and expectations with the more important features offered by the cards.

However, use a credit card to intelligently manage rather than increase expenses. Once you have received a credit card, keep a tab on your expenses. There are some pointers that will help you track your spending. If you discover that you are often paying only the minimum amount due on your card each month, or using cash advances to pay card bills or other debts, regularly exceeding card limits or using one card to pay off another, your credit is probably getting out of control.