Choosing a credit card Credit cards are necessity of modern life – you can't book a hotel, flight or simply rent a car without having a credit card. The fact that we need credit card doesn't mean that we have to get one without doing proper research. There are several factors you need to consider when choosing a credit card. First ask yourself are you planning to pay off your credit card in full each month. If you are planning to carry balance on the credit card then you'll have to look for a card offering low interest rates or 0 interest credit card (card that that offers 0% interest for a limited time). The second question is what credit limit do you need? Make sure that you choose a credit card with credit limit that suits your needs. Another thing to check is if the card you are researching has any annual fees. Consider getting a credit card with no annual fee, or if it has an annual fee check to see what benefits you get (reward programs, auto insurance on rental cars, travel insurance, etc.). It's a good idea to check what minimum monthly payment the credit card requires and what is the grace period (interest free period) of the card. Also find out what is the interest rate charged on cash advances. You should be aware of the fact that there are many different types of credit cards – student credit cards (these are usually low-interest credit cards), business credit cards (Costco Canada credit card for example), secured credit cards (these cards require security deposit with the credit card issuer), retail credit cards (for example Canadian Tire credit card, Sears credit card), credit cards in different currencies than Canadian Dollar (credit cards in USD for example), etc. The variety of credit card choices can help you choose a credit card that suits your lifestyle and is easy for you to manage. Make sure to check our valuable credit card tips as well.