by Joseph Kenny | 10/10/08

The process of how to go about selecting the right credit card can be a bit daunting, considering all the possibilities on the market today. However, there are some simple rules you can follow in order to get your money's worth, as far as credit cards are concerned.

To begin with, it's a wise idea to apply for only one credit card at a time.  That's because applying for multiple cards can lower your credit score.  If, after you've received a card, you find that you don't care for it, simply cancel your account.  

Another important consideration is interest.  It's best to apply for low-interest cards, but beware of those which charge an annual fee.  You might also look for cards that offer low introductory rates, such as 0% balance transfer credit cards.  Remember, the less money you pay in interest, the more money you'll save over time.  If your credit score is less than 680, you may have difficulty obtaining a low interest rate card.

If you pay off your balance at the end of every month, consider a rewards card.  Since in such a case you don't have to concern yourself with the interest rate, it's important that you win as many perks as you can.  Rewards cards can give you frequent flyer miles and other incentives that will make your charge card use worthwhile.

When applying for a credit card, it's important to do your homework.  Read your card's guidelines thoroughly, and make sure you know what the late policy is, what kind of minimum payment you'll have to make, and what other fees might be charged.

Financial experts also say it's important for charge card customers to keep in mind that credit is a privilege, not a right.  In order to keep your credit report in top shape, it's crucial that you pay your credit card bills on time.  One missed payment can really ruin your reputation, as far as credit card usage is concerned.