Understanding the basics of using a credit card can save you money, time, aggravation and can guide you on your way to building good credit.

It could be pretty overwhelming to get your first credit card since there are numerous options to choose from. Choosing the best one can rely on a card's fees and features, along with your personal financial goals and situations. Whether you want to avail a card from your current bank or look for the best one overall, keep the following factors in mind.

How do you want to use the card?

You should consider planning on how to use your credit card. For instance, if you wish to use one card for your day-to-day spending, a flat-rate rewards card would be suitable for you. If you want to maximize your rewards, you may opt for several rewards card that provides complimentary bonus categories. If you want to use the card only at the time of emergencies, then go for a card with a low-interest rate, high credit limit, and no annual fee. Thus, it is essential to plan how you wish to use the card to yield greater benefits.

Consider your credit score requirements.

The issuers of credit cards do not necessarily share or have a minimum credit score requirement for every card, but they provide some general guidance. Some cards are primarily intended for people who fall within a certain range of credit score—whether that is very good or poor or somewhere in between. So you may first improve your score and then apply for a credit card after the score increases. It can improve your chances of a successful application.

Credit card fees

For using a credit card, you have to pay a fee even if you never pay interest. Some of the fees that you should consider are the annual fee, late fee, and balance transfer fee. Note that an annual fee can impact the value you derive from the credit card. So opt for a beginner's card that does not charge an annual fee. Credit cards often charge around 3 per cent to 5 per cent as balance transfer fees for every balance transfer. You may save money by getting a card that charges a lower fee for the same. Similarly, you may also opt for a card that does not charge late payment fees.

Check for offers and rewards.

Credit cards provide rewards across various sectors. So get a card that aligns with your interests and needs. You may avail of special discounts on specific purchases and even get impressive cash backs.

Know your needs and pay your bills on time to make the best use of your credit card.