APPLY FOR THE RIGHT CARD

Decide what you want the card for

■ To pay off debt – zero per cent balance transfer card is the best option.

■ To spread the cost of a big buy – zero per cent purchase card is best.

■ An everyday card to help balance your budget throughout the month – a card offering loyalty rewards (only ones you will use) if you will pay off the balance in full each month. If you think you may have the odd month where you might not clear your spending in full, look for a card with a long-term low APR.

■ To use when travelling abroad – check the fees and charges for non-sterling transactions and ATM withdrawal charges. Cards such as Barclaycard’s Platinum Travel and Halifax Clarity don’t charge these fees, so you won’t end up paying over the odds.

Check you credit score If it’s not excellent, do a soft search to find out which cards you will be eligible for before applying formally. Each formal application leaves a trace on your credit report. Being rejected by one provider will put others off giving you credit.

Experian.co.uk has a comparison service which lets you know which products you are most likely to be accepted for. Totallymoney.com and Moneysupermarket.com have similar tools. Card firms including Barclaycard, MBNA and Asda Money offer soft searches before you apply for their products.

If your credit score is poor or very poor, try to take steps to improve it before you apply for any cards. You can improve your score by making sure you are on the electoral roll, make repayments on all your bills on time each month, and try not to live in a constant overdraft.