To qualify for a credit card you will need to give information about where you live and how much you earn. Before offering you a card, the card provider will do a credit check to investigate whether you have any history of outstanding debts. The amount it allows you to spend – your credit limit – will be based on this and your other circumstances. Credit limits tend to be modest to begin with but are often increased by banks over time. The card provider will also stipulate a minimum monthly repayment you need to make. You should avoid only paying the minimum your provider asks for each month, as interest has to be paid on outstanding balances.

Many cards have some form of insurance built into them, covering damage to goods purchased with the card or cancellation of a flight or holiday. This is free, but there are usually conditions attached so read the small print if you intend to rely on the cover. Bear in mind that you don't have to pay the full amount on your card to get protection – the key thing is the price of the product you are buying. For example, if you're buying a £500 flight, and pay £100 on your card and £400 in cash, your credit card will protect you for the full amount.

When choosing a card the easiest option is to go to your bank, but it may not offer the best deal for your circumstances. Instead you should consider how you will use the card and look for one that suits your needs. Store cards are usually available at the point of sale and can be used to make a purchase once a credit check and application form have been completed, which can take as little as 10 minutes. Retailers often offer incentives to sign up for their cards, which may include an introductory discount on goods. However, interest rates on these cards tend to be high. Affinity cards are credit cards with the logo of a charitable organisation on them. The charity will receive donations based on your spending. These don't tend to add up to much, and if the card has an uncompetitive interest rate you may be better off choosing a cheaper card and making donations separately.