A credit card is a small plastic card with a magnetic strip that is issued by a bank or other financial institution. It authorises card holders to purchase services and goods on credit.

There are many kinds of credit cards available, but they break down into two different main kinds. Charge cards allow you to charge items to your account but expect that you will pay off your full balance each month, Credit cards also allow you to charge items to your account, but let you pay for your purchases over time and charge you interest on the outstanding balance.

There's no single answer to that question, because it depends entirely on your circumstances. Only you can decide whether you're better off with a low interest card, one that offers cashback or rewards, or some combination of those. In general, most people prefer a credit card that offers a low APR - but that may not be the best choice for someone who pays their balance in full each month.

APR stands for annual percentage rate. Credit card companies make their money in many different ways. One of those ways is by charging you interest on the money that you borrow to buy things. The annual percentage rate is the percentage of your outstanding balance that you'll be charged in interest charges. If your APR is 12%, for instance, you'll pay ?12 interest per year on ?100.

The APR that you're offered is completely dependent on your credit score, the higher your credit score, the lower rate of interest you'll be offered. If you have a record of paying your bills on time, you'll be offered a credit card with a low APR. If you pay you bills on time and keep your accounts up to date, you'll qualify for a lower APR in time.

If you can't qualify for a regular credit card because of low or no credit, a secured credit card may be the solution that you need. You simply deposit a sum of money into a bank account with the bank that issues your card. Your spending limit will be a portion of that deposit. That money will remain in the account as security in case you don't pay your account. If you make regular payments when they're due, the issuing company will eventually approve a regular credit card for you.

There are many different standards of comparison when you're choosing a credit card - interest rates, annual fees, finance charges, penalties and late fees - even how your interest charge is determined. You can compare credit cards against each another at comparison websites where you'll find all the information you need to compare credit offers from dozens of UK companies.

Applying for a credit card online is easy, too. From the comparison websites you can just click on the offer that you've chosen to fill out a short application. In many cases, you can have an answer within minutes.