How do you choose a credit card?  Personally I look for one that gives me cash back rewards.  It’s simple and straightforward.  However, 40% of Americans carry a balance monthly on a credit card.  So they need to be concerned about the rates.  Personally if you are carrying a balance on a credit card, stop using it!

So first step determine which credit cards have the lowest rates.  These rates of course will vary depending on your credit (FICO) score.  However, there is a possibility you could get an introductory teaser rate which you might be able to extend by threatening to transfer your balance elsewhere.

Second, find a credit card without a deadline to make payments.  Thus you can never have a late payment. I have a card like that called the Citibank Simplicity Card.  Good card for people who have trouble remembering to pay their bills.  Again if you can’t pay your bills you shouldn’t have a credit card.

Third, try to stick with a Visa or Mastercard.  These two card types are more widely accepted than American Express, Discover, Diner’s, or speciality store cards.  All you really need is one card.  It’s easier to track your spending with one card and not multiple cards.  You will be able to pay your bill likely on time instead of trying to keep track of multiple dates.  And hopefully you’ll be able to pay it in full.

Now if you are someone who pays it in full and never carries a balance, then perhaps a rewards credit card is for you.  While I mostly advocate against choosing an airlines card, for people who travel a lot and in particular with one airline (usually due to living in a hub city), then consider choosing a rewards card.  My roomie has a Northwest CC, but he used to travel extensively and reached elite status annually.  This made paying the $75 annual fee worth it, because he would travel and build more miles to trade it for more travel.  But for most people avoid paying the annual fee it’s not worth it.  And since many people don’t travel enough to get elite status, don’t bother checking out an airlines rewards card.

Instead try to focus on cards that give you rewards for things you purchase.  Or things you’ll never stop needing.  Like gas rewards cards or cash back.  That way you never lose your rewards or have them expire.

Hope these suggestions help in choosing a credit card.