People are often advised to select a credit card which is right for them based on their spending habits. But you should choose credit cards based on your different spending purposes and have a card for each. Fortunately the UK market for credit cards has expanded rapidly in the last few years and offers credit cards to suit all purposes.

Internet only purchases – purchasing products through the Internet can make for significant savings. However, they risk receiving substandard goods or non-delivery. They may also be victims of identity theft . You should have a credit card which is solely used for Internet purchases that quickly allows you to spot any anomalies (e.g. A cash withdrawal) and which should also have money back guarantees on goods and services and insurance against credit card theft.

Supermarket Shopping – You should put monthly household bills and regular shopping and petrol purchases on a card with an interest free credit period (usually 59 days). The balance should be paid at the end of each month. Ideally, choose a cash back or loyalty scheme card and one without an annual fee. Another option is a charity scheme card.

Cash Withdrawals - if you have to take cash advances, for example, to meet business expenses, choose a card with low charges for cash withdrawals. For travel abroad, be sure to choose a card with minimal exchange rate charges and that covers you for lost luggage, cash and valuables, illness or injury and flight delays and, of course, replacement card if stolen.

Debt Repayments – long term low interest credit cards or cards offering 0 % interest for an introductory period can be ideal for paying off personal debts. Of course, if you are paying just the minimum, the debts will take a long time to clear, but if you maintain a reasonable level of repayments then you can avoid the interest and charges associated with personal loans and have the flexibility to increase or decrease your debt amount if required. This can be a cheap way to finance certain kinds of home improvements (such as fitted bedrooms) or to buy a larger purchase such as a car. If the credit company also offers payment protection you may wish to take advantage of this, although it also pays to shop around for this kind of insurance elsewhere.

Special Purchases – whether for domestic appliances, holidays, Christmas, anniversaries or birthdays, it is worthwhile having a credit card with a higher withdrawal limit on it which allows you to make a quick decision on large purchases so that you can take advantage of sales and special offers or make several purchases in the same day without having the hassle of getting funds out of the bank or building society. Cards should be chosen with domestic appliance warranty or price promise cover (repaying if you find the goods or services for less elsewhere).

Poor Credit Status – finally, you may have poor credit status for CCJs – often for only minor debts – or for other reasons such a matrimonial break up or because you are self employed. Some UK credit card firms specialize in providing suitable credit cards based on price-for-risk. The interest rate is likely to be higher than the one quoted but at least provides the individual with a credit option.

Whatever your purpose, there are plenty of choices. But be wary of credit card suppliers who seek to claw back benefits through hidden repayment clauses.

Look for the Summary Box to get a clear picture of the credit card's interest rate and repayment conditions.