Choosing a credit card involves making a lot of different decisions. Rewards or no-frills? What annual fee are you willing to pay? What’s the highest interest rate you’re willing to accept? Is a regular rewards programme okay or do you need a frequent flyer programme? You make all of these choices and more when you compare credit cards.

Sometimes these choices can get confusing. Some offers seem more similar on the surface than they really are. Others hide important information in the fine print, and you don’t see it until you’ve already been approved. And sometimes we just choose the wrong credit cards.

How do you Know if you Chose the Wrong Credit Card?

Here are a few questions you can ask yourself to help you figure out if you have the right credit card:

1.    Can you afford the interest payments? If you’re the type of cardholder who finances purchases over time, you really should have a low interest card. If the interest is too high, you chose the wrong one.

2.    Is the annual fee justified by what you get in return? If it takes you two years to earn enough rewards for a $600 flight, but you pay $300 per year or more in annual fees for access to the programme (like with the Qantas American Express Ultimate card), you would be better off putting that money to the flight itself. Then you wouldn’t have to wait. But if you pay $100 per year and get that flight, you’re getting a better deal.

3.    What’s your primary use for your credit card, and does your current card serve that need effectively? For example if you got the card to consolidate debt with balance transfers, you’d want a low balance transfer rate. If you want to save money and simply have the convenience of the card for shopping, you’d want a no-frills card like the NAB Low Rate Visa credit card.

Is what you’re paying in interest and fees combined okay with you because you get the perks you need and want? Or are you paying for things you never actually use, like free international travel insurance? If you’re paying for things, use them. If you won’t use them, find a card that doesn’t include those perks and decrease your cost in the process.

If you think you’ve made the mistake of choosing the wrong credit card, don’t worry. You can always apply for a better card and move your existing balance if it’s eligible (you often can’t transfer between two cards from the same issuer though, at least not getting the balance transfer deal advertised).

We’re here to help if you need it. You can use our site for credit card comparisons, viewing the latest credit card offers from many issuers side by side. Browse by type of card at the top of the site, or find your favourite credit card issuer on the left and see their current offers. You’ll have the right credit card for you in no time!