The best credit card for you will depend on your personal circumstances. But some general factors you may like to consider include:

Purchase rate – this is the rate you will be charged if you don’t repay your balance in full by the due date.

Interest-free period – cards usually have up to 44 or 55 interest-free days on purchases. This is the maximum number of days that you won’t be charged interest on new purchases, provided you pay your closing balance in full by the due date each month.

Fees – check how much the annual or monthly fee is. Also check for other fees, such as late repayment fees, cash advance fees and international transaction fees.

Balance transfer period and revert rate – if you are considering a credit card with a balance transfer offer, check how long the offer period is and what the revert rate is.

Rewards and perks – see what rewards and other perks (like complimentary insurance) are on offer and whether the annual fees and potential higher purchase rate offsets this.

Like all things, there’s always advantages and disadvantages to owning a credit card. Here are some points to consider before signing up for a credit card.

Potential pros of having a credit card

• Convenient access to money when lacking in easily accessible funds
• Useful when travelling overseas
• Able to earn bonus points while doing everyday spendings
• Can be convenient for online shopping

Potential cons of having a credit card

• Extra monthly debts to pay
• If debts not fully paid monthly, debts can accumulate with interest
• Ongoing annual fees and potential late payment fees and foreign transaction fees that can all build and be quite costly overall
• Discipline required to not spend more than what you’re able to pay back
• Interest on cash advances can be higher than for other types of spending on the card

Explore further → Should you get a credit card? We weigh up some of the pros and cons

Credit cards all come at a cost and these costs can easily add up and cause a spiral of accumulating debt. So it is important to keep track of all the potential ongoing fees involved with owning a credit card.

Here are some of the main credit card fees and charges that may apply:

• Annual fees
• Late payment fees
• Balance Transfer fee
• Cash advance rate
• Fees for exceeding credit limit
• Foreign transaction fees

Depending on your card type, some of these fees may be higher but it is often balanced out by extra features or a rewards program.

Credit card interest rates are one of the biggest contributors to credit card debt. You can use the comparison table at the top of this page to sort credit cards by purchase rate, which is the interest that is charged on the outstanding balance after the interest-free period. It’s important to remember, however, that the interest rate is only one of the costs involved in having a credit card. Other fees may apply.

Explore further → Late fees: How much they’ll cost you and tips to avoid them

There are currently dozens of credit cards that offer a frequent flyer or rewards program, so it’s a good idea to research the market and compare different options. Everyone’s circumstances are different and the ‘best’ credit card will also be different for each individual.

The first thing to consider when choosing a frequent flyer or rewards credit card is knowing what you want out of your credit card. Do you want international travel insurance? What will you spend on the credit card?

Other things to consider include which frequent flyer membership program are you already with as certain providers only offer frequent flyer points with their partnered brands.

Additionally, many of these cards also offer additional features (such as free airport lounge access) and complimentary insurances that should be considered too.