What type of card should I go for, Standard, Gold…or Platinum

While carrying a Gold or Platinum card once conferred a certain prestige, these days there is very little difference between them although some credit card companies will insist on charging a fee for a Gold card, for example. Sometimes this kind of plastic does come with more bells and whistles - you might get better benefits like travel cover, for example, but the reality is that most adults with sound credit histories on modest incomes can apply for Gold or Platinum cards and they will not be aware of any difference to plainer plastic in their purses and wallets. Don't forget that the credit card companies don't just make their money on unpaid balances. Depending on how or where you use your card, you may be hit with unexpected charges, so it's important to read all the terms and conditions of the card before you agree to use it. The good news is that, as of March 2004, credit card issuers have had to summarise their interest charges and features in what's known as an "honesty" box, making their terms easier for the average consumer to understand. Check the conditions carefully, making reference to how you will be using the card.How are the monthly payments allocated to the total owing? You might hope that a monthly payment towards an outstanding balance would go towards the oldest charge first, or the highest-interest-rate balance first, but that is likely not the case. For example, if you have a credit card with a balance transfer at 0% and new purchases at 16.9%, the monthly payment will likely go towards the balance transfer first, ensuring that your interest rises more quickly. Be sure you understand the small print regarding your payment allocation - known as the "payment hierarchy" - before you agree to the terms and conditions.