Test Your Credit Card IQ - Which Credit Cards Are the Best?

How do you choose the best credit card for your use? Experts recommend that you choose your credit cards based on how you intend to use it. Different styles of credit card are designed for different types of use. There are special rewards credit cards, low interest credit cards, cash back credit cards and even more. In fact, there's a credit card designed for nearly any use you can imagine.

Do you know which credit card is the best credit card to use in different situations? Take this little test to find out how much you know about choosing credit cards by the use you'll make of them. Which of your credit cards would you use in each of the following situations?

Your refrigerator just went kaput - and you need to replace it now. Which credit card do you choose?

• The cashback credit card, because you'll get a 5% discount if you buy your refrigerator at a particular merchant
• One of the low interest credit cards which will save you 3% of the interest charge each month
• It really doesn't matter

The correct answer is probably B. Low interest credit cards were designed for those purchases that you can't pay off in one month's time. By paying a lower interest rate on your entire purchase, you'll save money each month - and pay less for your refrigerator in the long run than if you'd taken the discount off the front end of the purchase.

You fill your car's petrol tank every week, and always charge it because it's easier than paying with cash at the pump. Which is the best of your credit cards for your weekly fill up?

• The low interest credit card because you don't have to pay a higher interest rate
• The petrol rewards credit card
• The cashback credit card so you'll get cash back at the end of the year

The best way to fill your petrol tank each week is probably with your petrol rewards credit card - as long as you pay the full amount due on it at the end of the month. Low interest credit cards are best for purchases that you'll carry on your account for several months, and cashback credit cards may not offer a higher return. If you reserve your petrol card for petrol purchases only, you'll save 2% on all your petrol purchases - and never pay interest at all as long as you pay your account in full.

You prefer not to carry large amounts of cash for everyday purchases, and you like the convenience of having all of your expenses accounted for, so you use one of your credit cards for all your regular shopping. Which credit card do you use?

• The petrol credit card because it's handiest to pay all your bills on one card each month
• The low interest credit card
• The cashback credit card even though it has a higher interest rate

Low interest credit cards are best for accounts on which you intend to carry a balance. Since you'll be paying off the full bill each month, the cashback credit card is the better choice since it will be putting cash back into your pocket for every purchase that you make.

At moneyeverything.com you can compare low interest credit cards and other credit cards from major providers of credit to find the credit card that's right for the way that you use credit. Visit moneyeverything.com to make your credit card choices the right choices.