To some a credit card is a necessity, to others it is just something to use in an emergency. If you don't have a card and you find companies offering you very tempting schemes and benefits, there are various issues to be considered and understood before you make a decision on a particular card. The first step is to sit back and evaluate what your requirement is. If you are in business you might look for a card with cash back offers or membership to discounted stores.

Usually the introductory offer for any credit card is very appealing, but once the honeymoon period is over then it may pop up a surprise. Find out what the new rates are going to be. A long term proposition with a constant moderate rate of interest just might suit you better. It's good to be aware of the interest rates or else they can upset the best of budgets. Cards offer transfer balance options, interest rates applicable on new purchases, fees that the company may not tell you upfront like annual fees, cash advance fees, etc. Make sure you are not being taken for a ride under the guise of tempting offers.

A card for personal use must be scrutinized carefully. Plan on making payments in the full amount every month and be aware of the penalties if the credit is carried over into the grace period. Look for cards with reward points which give you some returns in the form of gifts or adjusted against the annual fees. Use your card judiciously and you can collect frequent flyer points too. Cards also offer incentives but they come with small print that you may not notice when becoming a member. A typical gimmick would be 'buy more to save more', which in the long run, works to your disadvantage and works very well to the companys advantage.

The best option is to look for a card which offers a decent rate of interest, no hidden surprises and incentives which you can use to your advantage.