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You only have to open the mail, turn on the TV or read the paper to see a whole range of credit card offers. How do you know what you need to be looking for and make a fair comparison to find the best card? Find out what all the terms mean and how to seperate fact from marketing hype.

Intro APR: This is the introductory interest rate. Check if the rate applies to balance transfers from other cards only or on new purchases as well. Before you apply then make sure you know how long any introductory offers last, what fees apply and what rate will be payable once the offer has ended. To prevent people making too many transfers many credit card companies are now charging a percentage based fee for balance transfers.

Standard APR: This is the interest rate that you will pay on standard purchases. If you know that you will pay your bill in full each month then the interest rate may not be an issue but if you don't pay your bills in full each month then you should consider a low interest credit card.

Interest Free Period / Grace Period: This is the number of days you get interest free on new purchases. This period is normally described in the form of 'up to' a number of days, for example,'up to 55 days'. The reason it says 'up to' is because they show the maximum number of days you can get interest free. The length of time stated refers to the first day of your billing cycle through to the day your monthly credit card bill is due. Therefore if you purchase something near the end of your billing month you may get far less time interest free. There are a few cards with no interest free periods. Avoid these cards like the plague as you will already be paying interest by the time your monthly bill arrives.

Cash Advance Rate: Credit cards offer the convenience of accessing cash through a cash advance. Be warned, the luxury of having instant access to money normally comes at a high cost in the form of very high interest rates and fees. On top of this you may have to pay a few dollars for an ATM fee and interest is normally calulated from the day you take the money out. Unless you have a card designed for low cost cash advances they are best left for emergencies only.

Annual Fee: Many cards now charge no annual fee but if you want more rewards or benefits then an annual card fee may apply. Make sure you are aware of any annual fees before you apply and do a rough estimate to work out if the value of rewards or interest saved will outweigh the cost of the annual fee.

Rewards: Reward credit cards are growing in popularity and have branched out into many different types such as frequent flyer point cards, fuel discount or cash-back. By paying for most of your day to day expenses and major purchases through a rewards credit card it is possible to earn some worthwhile rewards but don't cut caught up in earning rewards. Never buy something just to boost your rewards as the value of the rewards you get back is only ever a fraction of what you spend. Also, you will be paying interest every month if you don't pay your bill in full and on time each month. If this sounds like you then you could benefit the most from a low rate credit card and do without the rewards. Most people will find that you save far more in interest than you would have earn't in rewards points.

Credit Required: Think about the credit rating of the cards you apply for. For example Gold or Platinum credit cards are clearly positioned for those seeking a high credit limit and have the income to justify this. If you're on a low income and apply for such a card you will almost certainly get rejected and your credit rating will be damaged further.

Now you know what you are comparing you can make an informed credit card comparison and find the best credit card for your needs.

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Richard and Lynelda Greenwood set up click4credit.com.au in 2007 to help Australian consumers compare credit card offers quickly and easily. The site is now a leading comparison site and part of a network of sites covering finance products including Visa credit cards.

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