To get the most out of your credit card it's important to decide whether it's actually suited to the purpose for which you intend to use it.

If you use your card for regular purchases such as the household shopping or buying petrol and always clear the balance in full every month, it doesn’t matter what interest is charged on the card – unless there is no interest-free period. Many cards offer an interest-free period of up to 59 days from the date of the transaction, until the payment is due. Choose a card with no annual fee and decide whether you'd like to earn a reward or cash back, but ensure the scheme on offer gives you a worthwhile return on your spend.

Both cash back and reward schemes vary and as a result some are more generous than others. Air Miles and Nectar come into this category. One of the best ways to guarantee you'll always clear your outstanding balance is to set-up a direct debit for the full amount each month.

If you are a regular spender who usually clears the amount owed in full each month it makes sense to choose a card with a low interest rate. Choose a card with no annual fee, and if possible one with a reward or cash back scheme though these perks are not always available on cards with the lowest rates.

If you are a regular spender who rarely or never clears the balance in full every month it makes sense to choose a card with a 0 per cent introductory interest rate or very low standards rate and switch to another card company once the low interest rate offer has ended. In addition if you've built up a debt on your existing card then consider switching to a credit card also offering a low balance transfer rate. There are plenty of cards offering 'double deals' - a low introductory rate combined with a low balance transfer rate.

Withdrawing cash on a credit card is expensive as high interest rates are charged and you will generally be charged interest from the date of the transaction. Be careful when using a credit card abroad as the card companies usually add on a percentage of up as much as 2% for processing the transaction. Some credit cards offer travel insurance if used while abroad and claims can be made for flight delays lost and delayed luggage and personal injury.

Many card issuers reward their cardholders with a range of extra benefits. These can include warranty cover for electrical purchases for up to a year after the manufacturer's warranty expires, price promise cover that ensures you'll be refunded the difference should you purchase an item and then find it cheaper elsewhere and free purchase protection insurance to cover your purchases against loss, theft or accidental damage for a specified period.

There are many web sites that help you find the credit card that suits you best. Most provide an easy to understand comparison of the cards on offer and list the different rates as well as comparing features and benefits. They will provide a secure link to the card company.

You will be required to give details of your personal and financial circumstances by filling in a brief form. If one card turns you down there may be another that suits your needs.