by Kirsten Hines

Created on: August 12, 2010

Having a credit card is a privilege.  To find a credit card that is best for you requires a bit of research. Each person has different reasons and needs for a credit card, take your time and explore your options.

Rebuilding your credit

Many people have a low credit score.  If this is the case applying for a credit card has two options.  With a low credit score you can get a credit card, but the interest rate will be very high.  In this case you may want to have the credit card for emergencies.  Make small purchases on the card and pay it at the end of each billing cycle to prevent paying the interest.

There is also the secured prepaid credit card.  For some this will be their only option.  This credit card requires you to front the money you will use when charging.  Again, use this for small charges and pay it off in a timely manner.  These two options will help you rebuild your credit score.

Find a low interest card

Companies will offer you a no finance charge for six months.  This appears to be a great deal, but look at the fine print.  The interest rate on the credit card after the trial period may go up astronomically.  Look for any hidden fees.

If you currently have a couple of credit cards and a good credit score, you can negotiate a lower rate. This is the perfect option to stay with a company you are happy with but would like a lower rate.  Simply call each company and ask them for the best rate they can give you.   

Ask the right questions

If you are looking for a new credit card, know the questions to ask: is there an application fee, an annual fee, does the interest rate change with the market and what happens if you go over your limit.  These are important to know when choosing a credit card.  Companies are not upfront with many fees until after you sign up for the credit card.

Take your time to research the companies and ask questions.  Do not apply for each credit card you are inquiring about.  Every time you apply for a card, it will show on your credit report.  This will lower your credit score, the last thing you need when looking for a card.

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