What kind of spender?

Personality makes a big difference when it comes to avoiding interest payments and maximising interest-free periods and card rewards.

Most people are either savvy or carefree spenders: do you always pay off your credit-card balance each month? Answer "yes" and you're a savvy spender; answer "no" and you're a carefree spender.

Savvy spender

Only 30 percent of credit card debt is paid off in full each month - by savvy spenders.

Controlled spenders like you don't need to worry about interest rates because you always pay your debt within the interest-free period.

You should look for a card that offers your preferred type of reward, a suitable credit limit and the lowest fees.

The more you spend on your card, the more rewards you'll get - so you're better off using your credit card rather than cash.

See Credit cards for a comparison of rewards and fees for bank credit cards.

Carefree spender

Seventy percent of credit card debt isn't paid off in full each month. If you're one of those carefree spenders, you need to consider not only the purchase price but also credit interest rates, fees, and interest-free periods.

Imagine you've just found the perfect present. As you reach for your credit card you notice a sign blinking "Get your in-store credit card". Your hand hesitates and you look to the counter where another sign catches your eye "Buy now - pay later".

What do you do?

"Buy now - pay later" sounds good but often any savings you make from a long interest-free period are swallowed up by an inflated purchase price. And when you read the small print, you may find you'll be hit with high interest rates if you don't pay it off within the interest-free period. Only take on this kind of credit if you can pay it off before the high interest kicks in ... and if the purchase price isn't higher than elsewhere.

See our comparisons of fees, interest rates and interest-free periods on credit cards and store cards to find the best card for you.