Credit card users have different spending and payment habits. You might pay off your credit card bill completely every month, or you may just pay the minimum payment due every month, keeping a small, manageable amount outstanding on your card. You may be one of the millions of people who keep their credit cards at or near the maximum amount allowed. Regardless of which one of the payment profiles above best describes you, there are hundred of different credit cards to choose from that are designed to offer the best value for any one of these patterns. If you take the time to match the proper credit card with your payment and spending patterns you can save a great deal of money. If you don't, you stand to pay hundreds or even thousands of dollars of needless interest or fees.



You might be one of the hundreds of thousands of consumers who are spammed weekly by credit card vendors either by email or regular mail, and if you've chosen a credit card from the selection that has shown up in your mailbox you've probably not chosen the best one available for your particular spending pattern. Credit cards are big business today. Credit card vendors offer a huge array of incentives to lure your business. Four of the most common of these are cash back rewards, award point good for travel services and merchandise, 0% balance transfers and low interest on outstanding balances. Some even offer you the ability to custom design the picture on the card!

One thing that all credit card offers have in common is this: all offers must contain a Truth in Lending Disclosure - it is required by law. Whether you receive an offer of credit in email or regular mail, you should make a game out of reading the disclosure before discarding. Pay particular attention to the interest rate offered - they're usually high, and aren't even close to the best deal that you can get if you shop for credit cards. As a matter of fact, some of the interest rates are astronomically high!

If you look carefully you will find that most credit card offers that you receive focus their sales pitch on one of these four types of rewards: low interest, cash back, award points, 0% balance transfers. Furthermore, whatever area of their focus, they don't perform well in the other three and may actually be extremely predatory in one or more of those areas. Here are some tips you can use to make sure that you choose the right credit card for your payment and spending profile:

1) Do you have a history of paying off the complete balance on your credit card every month? If so, you shouldn't be too concerned about the interest rate on your credit cards. However, don't discard interest rate completely! Keep the grace period in mind - that's the amount of time between when you purchase something with your credit card and when the bank begins to charge interest on that purchase. Often credit card companies charge interest beginning on the date of the purchase - others offer a grace period that lasts until the end of the calendar month, or for 30 days. A longer grace period can help you save money. Also, if you have balances on other credit cards that are charging interest, a card that offers 0% interest on balances transfers may be the choice for you. Or choose a card that offers reward points - your next vacation could be free!

2) A majority of credit card users maintain a manageable balance on their credit cards, usually drifting between zero and forty percent of the credit card maximum. If this is typical of your usage pattern then the interest rate offered should be of concern to you, but you may want to also take advantage of some of the other benefits offered such as cash back on purchases. This is a good, convenient, responsible use of your credit, and makes you an attractive customer to credit vendors; you prove that you are a good credit risk, you pay your bills in a timely manner, and you maintain a positive balance which makes you a good customer.

3) If your credit card balance is constantly at or near the maximum that you are allowed, then the interest rate that you pay is everything. Do not rely upon credit card marketing material found in email, regular mail or mall kiosks to provide you with the best deal - you need to actively shop for the best interest rate that you can find to control the amount of money that you pay in interest on your balance.

4) No matter what your payment pattern is be sure to pay your bills on time and always pay the minimum due at the very least. Credit card vendors have a nasty habit of ratcheting up the interest rate on your credit cards if you pay too little or too late - they sometimes do it without telling you, and your late payment on one card can affect the interest rates on all of your other cards. Be sure to read your credit card statement carefully every single month, and pay special attention to the interest rate that they're charging you.

The more you are informed as a consumer, the better your chances are to save some real money; this is true in all business and particularly true with credit cards. The amount of money that you can save by shopping for the right credit solution depends upon your spending habits and your payment schedule, but it can amount to hundreds or thousands of dollars per year. Be credit wise: adopt a habit of reviewing the credit cards in your wallet or purse once or twice a year, and always be on the lookout, shopping for better offers. Chances are that if you're using a credit card that you've had for over a year or two, you can save money - there are better deals out there.