Finding the Best Credit Card Offer

Do you ever look at the credit card deals that come your way, or do you just shred them? You probably receive several different kinds of credit card deals, and which ones you receive is probably a reflection of your credit report.

If, for instance, you have poor credit, you probably still receive plenty of credit card deals, but the offers you receive are for secured credit cards, or high interest credit card deals.

If you have excellent credit, you probably receive even more credit card deals for 0% balance transfer cards, cash back credit cards, cards that offer rewards programs and travel rewards, low APR credit cards and no fee cards.

Whether your credit report is good or bad, you can choose which credit card deals work best for you and your lifestyle. Here's how you do it.

Step 1: Categorize Credit Card Offers

Understand that there are lots of different types of credit cards and put the credit card deals you want to consider into categories. Some of your categories might be:

• Secured credit cards. These cards are backed up with some kind of collateral, usually in your savings account.
• Unsecured credit cards. These are only backed by your good name. They are riskier for the credit card company because if you default, they may not be able to recover their loss.
• Low interest credit cards.
• Balance transfer credit cards. Here, you usually get an interest break or even get the interest waived when you transfer another credit card balance to this one.
• Frequent flyer credit cards. You accumulate frequent flyer miles when you sue these credit cards. Remember, though, that frequent flyer miles are always subject to a host of restrictions.
• Cash back credit card deals. These reward you for using them. Sometimes you get a rebate check every so often. Other cash back cards give you a cash back credit with every purchase. Cash back credit cards are great if you pay your balance off ever month.
• Rewards programs. Here, you usually accumulate points that you can redeem for merchandise or gift certificates.

You may have other categories, but you get the idea. Choose the category or categories that work best for you. For instance, if you travel a lot, you might consider a frequent flyer program, or credit cards that offer travel rewards. If you are trying to rebuild your credit, you might look at secured credit cards.

Step 2: Compare Credit Cards

Next, compare the credit card offers in the categories you have chosen. There are several ways to do this. You can make yourself a little paper chart, or you can use a spreadsheet. Some financial management programs help you compare credit card deals. Or you can go on the web and find a credit analyzer like the one at MSN Money and use that. Here are some of the things you'll want to compare:

• Introductory interest rate
• Regular interest rate
• Length of the introductory period
• Grace period for payments
• Annual fee
• Late fee
• Cash advance fee
• Balance transfer fee
• Foreign exchange fee (if you plan to travel abroad)
• Online bill pay
• Rewards program

...and any other categories you can think of to add. When you put it all in a little chart or spreadsheet, it's easy to compare the different credit card deals.

Step 3: Choose the Best Credit Card for You

Choose the card (or two) that suits you and apply for it. Don't forget to shred the rest of the credit card deals.

Step 4: Use Your Credit Card Wisely

Use your new credit card carefully and responsibly. Here are some tips:

• Don't charge impulse purchases. Paying cash for them makes you think before you buy and avoids paying so much interest over time that your "great deal" becomes an embarrassment.
• Don't charge more than you can afford to pay back.
• Pay at least the minimum balance every month, and make larger payments most of the time.
• Try to pay your balance off every month. If you can do this, you'll avoid interest charges.
• Save your receipts and keep track of your purchases.

Step 5: Notice Everything About Credit Card Using

Watch for warning signs that you are using credit inappropriately and might be headed for trouble. You should be worried if you notice any of the following:

• You only make the minimum payment month after month.
• You are making late payments.
• You're surprised when you get the bill each month at how much you've spent.
• You max out your cards.
• You are depending on overtime or a second job, or dipping into your savings to keep up with your payments.

By taking the time to choose the right card for your circumstances and lifestyle, using it responsibly and watching for any signs that you might be getting in too deep, you can enjoy the security of a credit card. You can enjoy the benefits of a rewards program or a cash back credit card. And you'll feel comfortable with the knowledge that you are managing your finances-including your credit card deals-well.

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