Picking the appropriate credit card will benefit you financially. This article reviews different credit cards and give you an idea of which one best fit your lifestyle.

a. Be honest with yourself, do you really pay off the card every month? Some people will say that they pay it off, but ended up with a huge amount of credit card debt. So, evaluate your credit history and be realistic. This is the only way to save yourself from huge credit card debts.

b. Understand all the terms, APR, annual fee, grace period, penalties, late payment charges, over-the-limit fees, introductory APR (final APR after the introductory period), interest rate on cash advance. Selecting a card is complicated because of all the small print. Make sure to go over it with a representative if you don’t understand something.

c. Spends a lot of money and always use credit card on those purchases: Blue cash from American express - This card is very good for big spenders. This is how it works, for supermarkets (not including wholesale warehouses such as Costco), gas stations, and drug stores, you will earn 1% cash back. For all other purchases, you will earn 0.5% cash back. Once you hit the $6500 for that year, you start earning 5% cash back on supermarkets, gas stations, and drug stores. And you will earn 1.5% on other purchases. So, you will need to spend a lot of money on the card to make it worthwhile.

d. Bad credits credit card: Bad credit doesn’t mean no credit. If you cannot get a major credit card, then start from a minor credit card like a department store credit card or gas station credit card. Slowly build your credit so that major credit cards will be offered to you later.

e. Credit cards for frequent drivers: Do you practically live in your car? If you do, then choose a credit card that offers the most cash back on gas purchases. Both the Discover open road and Citi’s driver’s advantage are great cars for frequent drivers.

f. Rewards cards for people that want to get points for the money that they spend. Those points are redeem as gift cards to your favorite store. The points can also be converted into cash if you like. Blue from American express is one of the best rewards card. It offers low APR, one point per dollar spent, points never expire, and there is no limit on the points you can earn. Those people from American express encourages you to spend lots of money and you will get rewarded for it.

g. Credit cards for student: It’s important for people to build up their credit score early in life. Getting a credit card and being responsible for it will improve your credit score significantly. There are some credit cards specifically created for students. Discover student card offers cash back on purchases but has a higher APR. This card will benefit people that will pay off their balance each month. Fidelity Investments 529 College Rewards American Express credit card is created for students with good credit score and wants to deposit cash in their fidelity 529 college savings plan.

h. Carefully select a credit card that best suit your lifestyle. Don’t get a high cash back card with high APR unless you know you will pay down balance at the end of each month.

i. It’s important to have more than 1 credit card because you will need a backup in case something happens to your main one. Also, having more than 1 credit card will help your credit score. The FICO score is based on the credit to debt ratio. And we all know how important that score is to us when we buy a house.