Finding The Best Credit Card Application

There are hundreds of credit card offers to choose from and chances are you already have one or more them. All of the credit cards offer some form of incentive whether it is a free flight or just a low annual percentage rate. Doing some comparison shopping up front will go a long way in finalizing you decision.

Do you plan on carrying a balance? - Generally cards that offer reward incentives carry a higher APR, if you don't plan on carrying a balance then this does not affect you. Also many of the rewards programs have restrictions on them when you miss a payment or when your account is not in good standing.

Are you a person who travels a lot? Do you need the card for business? Do you have a favorite retail outlet that has a rewards program associated with a credit card offer? It may be a good idea to get more than one credit card and use it for it's specialized purpose.

Will you be replacing your current card or adding a new one to your collection? A typical feature of most credit card offers is the ability to transfer your old card's balance to the new one. Some cards will allow you to transfer the balance for free and carry it at a 0% interest rate for a introductory period of time. Some will even allow you to carry the balance interest free until you completely pay off the balance - a handy feature especially if you are carrying a large balance on another card.

Rewards -- Friend or Foe

There are many types of rewards programs and even more combinations of rewards as card issuers compete for your credit dollars. In general though cards come under; airmiles, cashback or retail points rewards.

Miles - You earn Miles for airline ticket purchases or other predetermined purchases

These cards are great if you are a person who does a lot of air travel and already have a favorite airline chosen. But beware, cards in this category typically have a large annual fee associated with them reducing the benefits you receive from the card unless you are someone who uses the card often.

If you are a person who uses your credit card a lot and pay your credit card bill in full each month then this type of credit card may be worth applying for.

Points - earn credit for retail purchases by using your card at selected merchants

Retail points reward programs may be the most popular and widespread of the reward programs available. Seemingly every retail outlet you can think of has their own credit card offer with a points system which allows you to save money on purchases by redeeming the points for goods at the retail outlet.

These cards are designed for people who do a lot of retail spending. If you have a favorite store find out if there is a credit card that will reward you for shopping there.

Rebates - You are reimbursed a predetermined percent of your purchase

Cash back rates vary by card offer but in general you will see rates of 1 - 2% and all the way up to 5% is possible to find. Remember to pay your bill each month since you don't want to use your cash back money to pay interest charges on the balance you carry.

There are also more specific rebate cards for gas, hotel, auto, etcThis is and excellent way to track and control spending while receiving a rebate on frequently purchased products or services

Keep this in mind. All of the rewards, points, miles and introductory rates are only as good as your credit habits. Missed payments often void your introductory rates and many times will negate the rewards you have earned. Always read the issuers detailed terms and conditions before applying for a card so there will not be any surprises