Choosing the Best Credit Card for Your Needs

If you are like most people, your mailbox threatens to burst under the weight of all the credit card offers you receive. Credit card offers seem to be growing in frequency, and the perks they are offering to entice new customers seem to be on the rise as well. With all these competing offers to choose from, it can be difficult to know which one is the best choice for your needs.

The type of credit card best suited for your needs is in large measure determined by how you use your credit card. For instance, if you always (or often) run a balance on your credit card, the only consideration should be the interest rate on the card. No matter how many frequent flyer miles or cash back bonuses you accrue, they will pale in comparison to the interest charges you will have to pay. Those with revolving balances should strive for the lowest interest rate cards they can find. Of course, it is also important to pay down those balances as quickly as possible.

Those who regularly pay their balance in full each month have a great many more choices when it comes to choosing an appropriate credit card. For those folks, it all boils down to what is most important. Those who like to travel may wish to opt for a credit card that gives them mileage points on their favorite airline, or free hotel stays at their favorite hotel. Many airline affiliated credit cards even come with bonus miles that are awarded when the card is first used. The downside to these credit cards is that most come with an annual fee, often a significant one.

Those who favor specific stores have a wide variety of choices as well. There are an increasing number of credit cards that reward customers with gift certificates and discounts at both brick and mortar and internet retailers. Like airline affiliated credit cards, such credit cards often come with bonus points, or even a bonus gift certificate upon use of the card.

The Discover card may have been the first to offer bonuses in the form of cold hard cash, but Discover has been joined by a long list of competitors in recent years. These cash back cards are generally best for those who charge a large amount of money on their cards, since the percentage of cash back is generally tiered, with those who charge the most getting the highest percentage of cash back. It is important to look at the fine print to determine the various tiers. When choosing a cash back credit card, it is the spending tiers that may determine the best card for your needs.

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