There are many factors to consider when choosing a credit card. Some to consider are:

• Do I typically carry a balance?
• Do I use it for  personal or business expenses?
• Do I often pay my bills on time?
• How often do I use a credit card?
• Do I have bad credit?
• I'm a college student or just starting out?

It's important to consider all these questions before deciding which card or cards to apply for.

Do I typically Carry a Balance?

If you typically carry a balance you will want to choose a card with a low interest rate (APR - Annual Percentage Rate).  This is the interest that is paid each month. The lower the better.

Some cards offer a fixed low rate. This means that they guarantee that the interest rate will stay low. 

Most of the time credit card companies will offer low interest rates to get you to apply for their card and then increase the rates later. Be aware of this so that you are not caught in a high interest rate trap.

 If you typically pay off your credit card each month a grace period will be important to you. Usually this is 30 days, if you pay off your credit card at the end of the month there will be no credit charges. Some don't offer this so read the fine print.

Also be aware that most cards charge more interest for cash advances and that the interest begins right away rather than after 30 days.

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Do I use it for  personal or business expenses?

If everything that you do financially is personal expenses it's easy - it's all personal credit.

However, if you have a small business it is wise to apply for business credit cards in your businesses name and keep it for business expenses only. 

You also need a business card for larger companies and corporations for employees that need to purchase business related items. 

Business credit lines are usually larger than personal credit lines because business need larger resources and cash flow.

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Do I often pay my bills on time?

It is always best to pay your credit card bills on time. Beware: Most credit card companies will revert to your post promotional rate if you are one day late on a single payment. This can be significant and usually is.

Most credit card companies will charge you a late fee as well. Typically around $40. However, it never hurts to ask them to waive the fee. Often times they waive it once in a while. If it's not a regular thing.

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How often do I use a credit card?

This is important to ask because if you rarely use a credit card it is probably not worth the possible higher interest rate that you may compromise (even 1% point) by obtaining a rewards credit card.

On the contrary, if you use your credit card alot anyway and pay all of it or a large part of your balance every month a  rewards credit card may pay off for you. Particularly if you want to save up for Frequent Flyer Miles credit card or save on gas rewards credit card etc.

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Do I have bad credit?

So you have applied for low interest rates and none are accepting you. You can always apply for a Pre-Paid credit card. The approval rating is 100% and you can build your credit this way.

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 I'm a college student or just starting out?

If you are a college student or just applying for credit it is better to start out with a Student credit card. Because these have a lower credit limit - it keeps you from getting too far in debt. 

A word of advise for college students - Don't charge for your Coffee' Late' everyday. This is a good way to get into a debt that is hard to get out of.

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