Choose a credit card that's right for you

One size does not fit all when selecting a credit card. Consider the following during your selection:

If you carry a balance month to month, find a card with the lowest monthly interest rate. Do not be as concerned (though don’t ignore) the annual fees for the card. In calculating the cost of the card, calculate the interest you will spend annually and then add to that number the annual fee of the card. The card with the lowest total should be in your purse or wallet. If you are carrying a balance, have a good or excellent credit rating, and have been a solid and on time customer with the credit card company, call them and request a lower rate. If you are a valued client, and those that carry balances AND pay on time are the most valued - the credit card issurer will have every reason to keep you. If they will not lower your rate, shop around for the best deal and switch cards.

If you do NOT carry a balance, card fees and features become critical. Features such as cash rebates, airline miles, or car purchase reward points are available and everyone will have a different reason for using a particular card. My personal choice is a card that allows me to collect miles on United Airlines. This card costs more than I like ($140 per year) but allows me to rapidly build miles, pretty much insures that I remain an executive member with United’s Mileage Plus program, and places no limits on the total number of miles I can collect. Others will chose cards with cash back. This is a great option for cards that offer significant rebates on gas purchases or direct checks to you for using the card. Just insure you know what you are receiving for the fee paid.