Analyze the type of material you will drill into, such as plastic, metal or wood. Drill bits are specific for each type of material. Drill bits are also sold as multiuse bits. A general purpose bit will wear out faster if used for drilling in metal, but should be fine for wood or plastic. A metal bit will typically cost more but last longer when being used on a metal surface.
Ensure that the drill bit you're selecting is compatible with the chuck size of your cordless drill. While some cordless drills now half half-inch chucks, many still have 3/8-inch chucks.
Select a drill bit that does not require high speeds for optimal use. Cordless drills run more slowly than corded drills.