Carrying a Balance

• If you plan to carry a balance from month to month, it is important to shop around to find the card that offers the lowest possible interest rate to minimize the amount of interest you pay over time. If you plan to pay the balance in full each month, the interest rate is of lesser importance, so you may want to pay more attention to the card's other features instead.
  
  

Frequent-User Programs

• Credit card companies offer a variety of frequent-user programs to entice cardholders to make as many purchases as possible. If you want to take advantage of programs where you accumulate points to receive discounts on travel or merchandise, it can pay to check the programs offered by a variety of cards. Look for programs that are tied in to merchant, airline or hotel programs to build your point total more quickly. Also look for cards that offer cash rebates for frequent use.
  
  

Extra Benefits

• Some cards offer additional benefits at little or no cost that may be of use to you. For instance, if you rent cars frequently, you might receive rental car coverage at no additional cost if you use the card to rent the vehicle. If you don't have your own life or disability insurance, you may be able to purchase these at a relatively low cost. If you die, the life insurance will pay off your outstanding balance, and the disability coverage will cover your minimum payment for a specified time frame if you are unable to work.
  
  

Fees and Payments

• Credit cards can come with a variety of fees, so you should check all card offers to determine things like how much extra you'll be charged if you're late on a payment, as well as the amount of any annual fee. Cards like the basic American Express card require you to pay your balance in full each month, so there are no interest charges, but it also comes with a hefty annual fee. Also check how long of a grace period you'll have and what percentage of your outstanding balance your minimum monthly payment will be.