How to get the right credit card

From rewards cards to low-interest cards, find the one that fits your needs and spending habits.

About 15 per cent of consumers actually do research into finding the best credit card.

Another 60 per cent of the population apply directly through their bank, not knowing exactly what they’re getting.

If we spent half the time we do on choosing a credit card as we do on researching our next big purchase, we could save hundreds, even thousands, of dollars.

• If you pay your balance off in full every month, find a cash-back rewards credit card with no annual fees and a solid rewards program.
• The higher your payments, the closer the rewards. The more you pay, the more you get.
• But, if you don’t pay your credit card off every month, it could take you up to six years to get the rewards you want at 20 per cent interest.

• If you carry a balance on your credit card (i.e., you never make a full payment), be sure to choose a card that offers a low interest rate.

• If you spend a lot on fuel, consider a credit card from a service station that offers rewards on car expenses.
• If you travel a lot, look for a card that comes with rewards for flights and lodging.

• Beware of credit cards that offer low, introductory interest rates.
• Chances are the rate will escalate within three to 12 months unless you call the company to modify or cancel the card.
• Make sure you take all of the costs into account. As they say,  if it looks too good to be true, it probably is.

Some people like having just one card because it's easy for them to track records in one place. If you go for more than one, choose your cards carefully to ensure that you’re saving money and earning the best rewards.