Choosing the right credit card can be tough. With hundreds of credit cards available through dozens of providers it can be tricky to find the perfect card.

So, to help you, we have put together this straightforward guide to the five things you should take into account when you compare credit cards.

1. Interest rate

When you are looking to apply for a credit card, the interest rate will be one of your most important criteria. You may be looking for a 0% balance transfer or purchase rate, or you may be looking for the most competitive long term deal. Or, you may want to use the card abroad and want the most competitive rate.

Make sure that you know exactly what type of deal you’re looking for before you compare credit cards. If not, you could end up with a deal that isn’t appropriate for your particular circumstances.

2. Fees

While the interest rate on credit cards might be the most important consideration, make sure that you also take any fees into account. For example, if you’re looking for a balance transfer offer then you may have to pay a fee of up to 3% of the balance you transfer. Always ensure you know what fees apply.

Make sure you also take into account the level-off fees for late payments, duplicate statements etc.

Sometimes paying a higher interest rate and a lower fee may benefit you. Do your homework and take both the interest rate and any associated fees into account when you do your credit card comparison.

3. Service

While great rates and low fees may be attractive, you will soon become disenchanted with your credit card provider if the service you’re getting isn’t up to scratch. Nothing is more frustrating than hanging on for hours on an automated telephone system or standing in a long queue at your local branch.

When you compare cards, have a look at the level of service offered by the card provider. For example, do they have a 24 hour online banking system that will allow you to check your account balance and make payments to your credit cards?

4. Application criteria

When you compare credit cards it is, of course, vital that you look at credit cards which you are eligible for. There’s no point finding a credit card with great rates and low fees if you aren’t eligible.

So, when you compare credit cards, make sure you check the eligibility criteria. For example, many cards won’t be available to you if you have any sort of adverse credit. Other cards have different criteria, such as a minimum level of income.

You’ll end up wasting your time if you don’t make sure you’re eligible for a particular credit card before you apply. Plus, if the application is unsuccessful, it’ll leave a ‘footprint’ on your credit report, which may make it harder to get accepted for the next credit card you apply for.

5. Other credit card benefits

In order to differentiate theirs from other credit cards, many banks and building societies now offer a range of additional benefits and perks to cardholders. These include insurance products, enhanced security on your credit cards, reward points and discounts for goods and services. Some cards also offer vouchers or cash back based on usage.

While additional perks might be beneficial, when you apply for a credit card you should not be swayed by short term incentives or one-off offers. Finding a card that offers a good interest rate and low fees can save you hundreds, or even thousands, of pounds in the long term and the savings on a good value card will often well outweigh the value of small incentives.

However, when you compare credit cards it is worth taking any additional benefits into account as this could sway your decision.