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There are many credit cards out there. They all offer different incentives to entice you to apply. So how do you wade through the masses of information available, and weigh up the different choices that are on the market. This Review aims to give you some pointers as to what to look for to choose the right credit card for you.

When you select your card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new cards and new holders. Some will offer you truly amazing deals, especially if you have good credit. But remember the emphasis is on making sure it is the right deal for you.

The first thing you’ll need to decide when choosing your card, is the reason why you want one in the first place.

Some people choose to get a card for cash flow purposes. Using your card for your day to day living expenses allows you to leave your salary in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill. Does this sound like you, or how you would want to use your new credit card?

Or you may want it for instant cash purposes. This way, you can use the credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is what you primarily want the card for, you should look for one that has the lowest rate possible for instant cash transactions.

Are you likely to pay the balance in full each month, or only the minimum amount, or somewhere between? If you intend to pay the full amount then the interest rate on offer for outstanding balances should not be the key incentive to choose an offer. If you are likely to leave an outstanding balance each month then the interest rate is a key factor in your choice.

If so the key area you’ll need to look at is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the free period runs out. This is usually on outstanding balances and items designated as cash withdrawals (but can vary so check the terms on offer). APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. If you plan on not paying the balance off monthly then the lower the APR rate you get, the better off you’ll be. If you do plan on paying off the balance each month then the APR is not your key incentive.

Another important area to look at when choosing your credit card is the incentives. There are numerous types of incentives on offer, such as reward points,cash back with purchases, add on deals on travel insurance or breakdown cover, 0% interest offers, balance transfer deals, the list seems endless. But don’t just go for the most eye-catching. Pick the deal with the incentives that best suit your needs.

Another concern with choosing your credit card is the minimum payment amount. Most start around 3% of the outstanding balance, although again this can vary. In addition check the interest free period. How many days grace do you effectively get before each purchase starts to attract interest?

When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. If you put some time and research into choosing your credit card, you’ll find the best one for you.

It’s true that there are many people today who shun the credit card in their lives. Some who are still facing problems also strive to slowly lessen the use of the plastic. Financial experts point out the card is useful as long as you know how to use it and you know what you’re getting. In short, you have read and understood the fine print.

There are also some misconceptions regarding the use of the credit card and how one can gain a good credit score from it. Don’t believe what they say that you can get a good score from paying your bills on time. Yes, paying on time is the most responsible thing to do but it does not guarantee you a favorable score. This is so particularly if you often reach your credit card limit.

Take note that there are other factors being considered by credit card companies and agencies. The balance on your last statement is just one of them. So keep in mind that when you incurred a high balance even just one time, it can have a negative impact on your score.

The solution here then is to pay a few days before your regular credit card statement date. When you are able to do this, the agencies that determine your credit score will receive a report of a low balance from your end. So remember that on time does not always mean more points for you.

Another thing to learn is that maintaining a balance won’t give you a good score. Some people believe that it’s okay to have a remaining balance each month but this is wrong. The credit bureaus are actually particular about a consumer’s payment history as well as the balance that’s being carried on their monthly bill. So if you have the extra money, do pay more than the minimum amount due to lower your balance moving forward.

Do away as well with the mindset that you will get a better score if you earn more. Having a high income, according to the experts, does not have any bearing on one’s credit card score. The benefit of a high income, though, is you can be approved of a loan faster than those who don’t earn much.

You might also think that closing one or two of your credit card accounts can help you with regards to your score. Unfortunately, this is not so true because it can adversely affect your credit score. Eliminating some cards would mean lowering your so-called credit utilization ratio. What you should do then is to just maintain the card and use it once in a while for small purchases. This will keep your payment history in a much better condition.

Finally, know that paying off your debt will not immediately give you a good score contrary to what many of you think. Remember that any negative information you’ve incurred in the past will be seen and stay in the credit report for seven years while any bankruptcy information will remain for 10 years.