4.Protection Plans: This is another juicy money maker for card companies. For an annual fee you will get protection on your card in event of them being stolen, lost or used fraudulently. Most credit card companies usually don’t charge for this and will refund you money for any fraudulent transactions. I wouldn’t suggest getting this.

5.Credit Limit increase: You had a credit limit of £3,000 and have been diligently paying off your card every month and all of a sudden your new credit card statement says you have a credit limit of £10,000. You probably didn’t ask for increase but hey they gave it to you anyway. Psychologically this makes you think you have more money to spend but it is in fact a sneaky way of getting you to spend more money on your card. If you don’t need it ask your credit card company to remove new limit.

6.Foreign transaction charges It is usually quite convenient to use your credit card abroad on holiday or on a business trip. No need to carry large sums of foreign currency around with you. But wait for it …….. You will be charge for this privilege (not surprised I am sure). You will be charged a commission depending on amount you spend abroad which can vary from 3% to 5%.

7.Cash withdrawal charges: Not much new here. If you withdraw money from a cash point using your credit card you will be charged for privilege. Remember nothing slips through. Card companies can charge in region 3% of amount drawn and bad news as if this isn’t bad enough, you won’t benefit from any promotional 0% introductory offers that are currently running on your card.

As you can see credit card companies make money from us in more ways than we in most cases are aware of. Be smart and remember all these crucial aspects when using your credit card. You may be one of few that limits credit card companies from only making bare minimum from you.

The fees charged by a credit card should also be taken in consideration when selecting a credit card. Most credit cards charge several fees like: annual fee, cash advance fee, late payment fee, balance transfer fee, etc. This is probably most important consideration. If you plan to pay bill in full every month select a credit card with no annual fee. If you usually use cash advance feature check what credit card has lowest cash advance fee. Or pick credit card that has lowest interest rate if you expect to carry a balance.

Even though features mentioned above are most important to consider when shopping for a credit card, there are also other features that are not of such great importance but at end they will make a difference. For example, some credit cards are accepted in more places than others. When choosing a card you have to make sure that it is accepted at types of places where you will want to use it. The benefits received with a card can also make a difference. Some companies offer various benefits for some credit cards, like: rebates on purchases you make, discounts on travel, various gifts and discounts, etc. When selecting such a credit card, make sure that benefits are those you'll use and that other aspects of card do not offset benefits.

The most important thing to remember when shopping for a credit card is to take your time and carefully evaluate all features of card and after that decide which card is right for you and meets all you needs.

This article has been provided courtesy of Creditor Web. Creditor Web offers great financial articles available for reprint and other tools to help you find right credit card. We also offer tools to make it easy for you to compare credit card offers from multiple issuers.