Annual fee

There are credit card issuers that charge 500 to 1000 as annual fee for using their card and associated services. The charges however differ depending on the status of the card. For regular, classic and silver cards, the annual fee is much less than for gold, titanium, platinum and signature credit cards.

If a credit card has all the features but offers a zero annual fee, it certainly is a good choice. Also, always ask for options like replacement of annual fee by one-time fee or waivers of annual fee for the first year.

Credit limit

The amount of money that one can spend by swiping his credit card is called credit limit. Depending on the repayment capacity of a card holder and the status of the card, credit limit is decided by the issuer.

One should always opt for a credit card with higher credit limit provided all other desirable features are present in it.  One can also increase the limit after few months of usage.

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