Credit cards offer convenience and enhanced security over carrying cash. Identifying the type of card that is best for you based on your usage and what your goals are is key to maximizing benefits and value of any credit card.

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When Barclaycard was launched in 1966, it was the UK's only credit card. Actually, initially it operated like a charge card so the bill had to be paid off in full every month and the maximum credit limit was a mere £100. How times have changed.

Let's face it. Credit cards are a jolly convenient way of handling cash flow and there's the added bonus that you can get up to 59 days of borrowing interest-free. But there are other benefits too.

When you apply for a credit card, the two main sources of information that lenders use when deciding whether to grant you credit are the personal details you supply on your application form and the information held on you by the credit reference agencies.

Whenever you make any kind of application to borrow money, lenders will invariably check your financial credentials with their chosen credit reference agency to see whether you are a good or bad credit risk.

Having a bad credit history doesn't exclude you from getting a credit card but you may have to pay substantially more for your plastic.

By using your card, you can defer payment for goods and services for up to two months, without paying any interest at all. But to do this, unless you are taking advantage of a longer-term interest-free credit card you must pay off your entire balance each and every month; otherwise interest will start clocking up at an alarming rate.