A credit card can be considered a handy tool, but it can also make horrible damage if misused. So go for the right card and follow the safety rules. Here are some things take into account prior to selecting a credit card.

Spending Habits

How do you intend to use a credit card? Do you plan to pay off the card every month without fail, or do you expect to carry balance every month? Are you going to use the card only for emergencies or for your every day needs?

If you plan on paying your bill in full each month, the interest doesn’t matter really. Look for a credit card with a longer grace period and with no annual fee, to avoid finance charge. If you’re expecting to carry a balance, you would want the lowest interest rate possible and a low introductory rate.

If you’re going to make use of this card for your daily needs, look for a card with solid reward program and a generous credit limit. If you’re planning to use the card for emergencies only, look for a credit card with low fees and interest rate.


The interest rate appears as the Annual Percentage Rate or APR, on a credit offer. It could either be a variable rate or a fixed rate which is connected to another financial indicator, which is commonly the prime rate. With a card with fixed rate, you’ll be able to know what the interest rate will be every month. A credit card with a variable rate can change. But even with a fixed-rate credit card, the interest rate can rise or fall based on some aspects, including paying any card late or going beyond your limit. Or because the issuer of the card makes some changes to it. Yes, they can do so, after notifying you.


Credit limit is the amount of money which the card issuer is willing to lend you. Depending on your credit history, your credit limit can be just a small amount to big amount. You must avoid situations where you are close to maxing out the limit, otherwise, this will hurt your credit score. And some card issuers cut customers’ credit limit to an amount that is lower than their current balance. When such happens, you can get penalized.


There are several ways a credit card issuer can make money off you. The common charges include transaction fees, such as balance transfer and cash advance, or paying by phone, or asking to increase the credit limit. You could also get charged for late payments as well as going beyond the limit.

For legal advice on credit cards with no charge, visit CCLSWA.org.au by following the link given.