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Picking the right credit for you is usually quite painful task, though I will try to make it easier for you. You need to put yourself in one of the following categories before we go any further:

- You have a balance, and are trying to pay it off

- You do not have a balance, and always pay your bills on time

- You sometimes have a balance and have several credit cards

- You have very little or no credit history, or bad credit history

Trying to pay off your balance

If you do have a balance, and are trying to get rid of it, a low interest rate is a good start. With a lower interest rate, you will lose some other benefits probably (flight miles, money rewards, etc…)

You should look for the right interest rate for you. Most will quickly want to find the card with the lowest interest rate. You should not always do this, as many of these rates do go up after a certain period of time. For those with lots of debt, it is unlikely that you will pay it off before the interest rate increases. Secondly, make sure you a pick a card with no annual fee. This is good for a number of things. If you pay off your debt, you can cancel the card at no penalty.

You should watch out for cards that will do certain things to increase your rate. Low rates on some cards may only apply for new purchases (your old debt will not be lowered as you want). Rates may also increase suddenly if you make a late payment. You should also watch out for cards with large fees or penalties. You can get penalized for more than just a late payment. You can be penalized for paying off your balance too soon, or having too big of a balance on a separate card.

No balance whatsoever

You’re in a good situation if you have no balance. You can get practically any card, and more than likely a card that will offer you lots of bonuses (flight miles, gifts, etc…)

You should look for a card that offers a grace period. For those with no balance, you should not have to pay interest. As time goes on, card holders have less time to pay bills. If you do not have a grace period, you may be charged interest prior to receiving your bill. As mentioned before, look for a card that will offer you plenty of rewards. Might as well get something for being so perfect! But keep in mind; these reward cards generally have annual fees. Be sure the fee you pay is less than what you will get as rewards.

You should watch out for cards that will charge you usage fees. By this I mean that you will be charged for not using your card enough. This is not very common, but it does still exist, so be aware! Secondly, check how long the points you receive are valid for. For example, some flight miles may only be valid for a certain amount of time. Imagine how much of a bummer it would be if they expired! Some cards even have a policy in which the points you receive reset every year, so be sure to use your rewards if this is the case.

Sometimes have a balance, and multiple cards

You should look for a card that offers billing which is very clear and organized. The bill should clearly outline your purchases and spending habits. This might push you towards getting rid of your other cards and sticking with one. Secondly, you’re not perfect, but you’re not the worst either. You have a balance only sometimes, so you should be rewarded. Look for a card that will offer rewards, even if it isn’t much.

You should watch out for having too much credit. If you have too many cards, many companies will view you as a risky person. Try to keep your number of cards as little as possible, one being the ideal number.

Horrible credit or no credit at all

You should start by going to the bank. Find out if you are eligible for a line credit. Most banks have debit cards, which are linked to your checking account. These are basically like a credit card. If your bank is not offering a credit card, or furthermore you’re not eligible, you can try for a secured credit card. Secure credit cards require you to leave a deposit (as collateral). The deposit can be anywhere from $100 to $5000.

You should look for reasonable rates. Rates will more than likely be high, but some will be higher than others. Look around till you find something reasonable.

You should watch out for scams. When you have such bad credit score, people know you’re desperate. Do not fall for a scammer. Secondly, be careful of extremely ridiculous fees. Once again, companies are aware of your situation, and may offer you very high fees and rates.

As you can see, each person has different habits, which will require a credit card for their needs. Which category are you in?