Choosing the Right Credit Card Type

Should you choose a rewards card? Low interest card? Store credit card?

Almost everyone has a credit card these days. And there is good reason for that. Credit cards allow you to make purchases without having cash on hand, or even without having the funds in your bank account to cover the purchase at that time.

While my philosophy is that it is best to stay out debt in the first place, there are a number of situations where I believe that it can be appropriate to use a credit card.

So how do you choose the right credit card with so many options out there? First let's look at some of the most popular types of cards.

Some other things to look out for: Does the card have an annual fee? Avoid it, unless the rewards justify it. Does the interest rate adjust after a period of time? Think about all of these things before pulling the trigger on getting a new card.

Personal Finance Spreadsheet

Download the Smart Personal Finance Spreadsheet. It can help you organize your financial life by giving you a snapshot of the current state of your finances, thus helping you make better decisions about how you spend, save and earn money.