Credit cards are ever present in our daily life, it is mission impossible trying to avoid them. But you have to be careful about the choice you make about the credit cards because those decision would turnaround to make or mar you and your finances. You must be aware that this plastic money comes in three main types. The first and perhaps most popular are those issued by banks like the MasterCards, Visa etc. They are also known as bank cards. The issuing bank dictates all the terms. They limit how much you can spend – your limit as well as how repayment should be made either in full at the end if the month with no interest or require you to pay a minimum percentage of the balance with a finance charge on whatever you are carry on over. The next type of card is the entertainment and travel cards. Examples of this card include American Express and the Diners cars. Although the limits on this type of card can be high, you have to pay everything at the end of the month. The third type of card is the retail store cards. This card is specific to the store or company that has issued them and their retail network. There is a wide disparity about the details of the card and its utilization.

Even within the different cards, there are several options to choose from. These options exist to cater for almost all the segments of the market. It is therefore worthwhile that you make a wise decision in choosing the credit card that meets your needs. The guide would give you headway in making the right choice of credit card..

The first step is to know what cards you qualify for. Various cards have different eligibility criteria, so see which ones you can get.

From the options of cards that you are eligible for, you need to compare the interest rates that are chargeable on the cards. The ideal is to go for the lower interest rate as much as is possible. However it is advisable to read the fine prints to get details of what other charges you might accrue. This includes charges like annual fees, late payment fees and whether there exist a grace period when you default before you are charged an interest.

No matter what credit card you choose it is mandatory that you determine what limit is appropriate for you based on your income. This strategy would help you avoid the pitfall of piling up credit card debts. While credit cards allow you to spend, you must understand that it is not free money. You have to pay at sometime and that payment is going to come from your incomes source. Do your best to limit yourself to as few as possible the number of cards you carry. Not only does this help you track your expenditure well it also keeps your spending potential in check.

You must also compare the features of the cards and what services they offer. These incentives like cash back, rebates, earning points etc which geared towards making the cards more attractive to you and to encourage your spending tendencies, you can effectively turn it around for your benefit.

Whatever card you end up choosing you must ensure that the card has wide range acceptability.