The Australian credit card market is constantly changing, meaning it is a challenge to stay up to date and  make an accurate credit card comparison before committing. Thankfully, personal finance sites now aggregate all the deals together and so you can compare cards side by side by features that are most important to you, so it becomes a little easier to manage.

The truth still holds that you cannot make a judgement on a credit card by rates alone; the right card for you will depend on a combination of your own financial circumstances, you repayment habits and the level of financial organisation you adopt. The critical question is - how long do you plan to keep balances on the card?

Credit Card Comparison Factors

All factors should be considered when performing a credit card comparison, even though one or two may be more important to you than others:

• Promotional offers & introductory deals
• Interest Rates
• Balance Transfer Rates
• Annual Fees
• Rewards
• How interest charges & fees are calculated

Credit Card Comparison By Rates

When comparing credit cards by interest rates you need to be careful to look at the long term rates and not just the short term "teaser" rates.

Also keep in mind that annual fees and interest charges on your interest actually increase the overall rate you are being charged; which is the better deal will usually depend on how often you use the card and whether you can clear the balance in full each month  - in which case no interest is paid at all.

Be careful to conmsider all of the following regarding the rates:

• Are the rates the same for purchases and balance transfers?
• What are the rates for cash advances?
• Are higher rates automatically put in place if you are late on payments?
• Does the credit card company charge interest on accrued interest and fees?

Reward Programs

When doing a credit card comparison by looking at the rewards and benefits offered by different banks and credit card companies you should assess not only what it takes to be able to earn those rewards but whether you will actually use them.

Rewards programs are available for entertainment, shopping , travel, air miles or even cash back, but the amount of unclaimed rewards points in Australia is staggering.

In fact credit cards with attractive looking rewards programs can be covering higher interest rates and annual fees; whether they are worth it will depend what the rewards are and whether you will use them.

Accurate and through credit card comparisons involve doing some homework but they can save you from making a big mistake with your finances.