credit cards

Today, credit cards are more popular as a mode of payment than ever before. In fact, the rewards programs offered by many cards have become a great way to make your credit work for you. If you have begun the process of searching for the right credit card, let these important tips be your guide in determining which credit card is right for you.

Different Types of Credit Card Interest Rates
First, pay close attention to a card's interest rates. Many credit cards advertise attractive introductory rates for periods that range from three to 12 months. If you have excellent credit, look for a zero percent introductory rate. If you have been planning on making a large purchase, such an offer can lead to enormous financial benefits. Whether it is a new computer, travel to a family reunion, or car repairs that can't wait any longer, a card with zero percent interest is the smartest way to make those purchases. If you can pay down the entire balance before the introductory period expires, you'll be using your credit wisely. Some creditors also offer excellent balance transfer rates that will allow you to save money by transferring high interest balances to your new card.

Besides the introductory rate, always determine the ongoing interest rate of any introductory offer advertised. Introductory offers with low or no interest are great ways to save some money; however, unless the ongoing rate is low as well, you'll spend more money in the long run.

Annual Fee
Additionally, you'll want to know whether the card you're applying for carries an annual fee. If you have good credit, you should be able to qualify for a card without such a fee. Read all terms and conditions closely before you complete your application.

Types of Rewards and Incentives
As an added incentive, many credit card companies now offer programs where you can earn rewards when using their card. These rewards may include airline miles, cash back, as well as point systems where you earn points that can be redeemed for popular merchandise. Reward points are subject to the card issuer's stipulations, so check beforehand to see how you are allowed to spend your points, as well as how they are accumulated. Similarly, if you choose a card that helps you rack up airline miles, check to see how those miles can be redeemed (some cards may restrict the use of miles on blackout dates, companion tickets, etc.).

Cash back benefits may vary depending on what you purchase. Some cards offer higher rates for everyday purchases like gas, groceries, and drugstore items. Others offer a flat percentage rate that does not change. Choose what works best for you, according to what you buy.