First of all, credit cards are not created equally. Before you choose one, think carefully about your spending habits and how you plan to utilize the card.

If you must charge your purchases, try to make a smart decision by using a card that will do something for you-- and not to you.

Annual fee: with so many credit cards on the market, it generally doesn't make good sense to pay an annual fee for the privilege of carrying a piece of plastic in your pocket. However, there are cards that can make a rate guarantee, such as prime interest rate for life. This might be a smart decision in the event that you regularly carry balances on a card.

Membership perks: some cards offer really cool "benefits" in exchange for carrying their card. Some of these extra benefits can be seen as value added services, such as travel insurance or extended warranty protection. Be careful though, because the devil's in the details. Carefully read your card membership agreement because a lot of these cards have a list of exclusions longer than your right arm.

Credit monitoring: as a consumer you're very well aware of the importance in having up-to-date information about what is on your credit rating. Because your credit score is based upon your financial performance, it makes sense that you would want to know immediately if someone posts negative information about you on your credit file.

Default rates and penalties: before you sign on the dotted line and accept a credit card, be certain of the terms and conditions surrounding the use of your account.

Credit card companies almost universally charge default credit card rates if you make two consecutive late payments, but there are also card issuers out there that will increase your APR if you're late in making payment to any creditor.

Default rates can sometimes be as high as 30% -- or more - so be careful and know ahead of time what you're getting into.

Customer service and online payment: nobody plans on having a problem with their credit card, but if you do, you want to know that excellent customer service is only a phone call away.

A growing number of credit card companies are outsourcing their customer service to foreign countries, where communications could be a challenge. In addition, some companies are even utilizing prison inmates as customer service representatives.

Balance transfer checks: find out what your prospective credit card company's balance transfer rules are, because some companies will mail you "free" balance transfer checks.

If they do, be careful how you utilize them, because there are credit card companies that will permit you to draft a check in excess of the amount of available credit to which you are entitled, which can result in excessive fees and charges being assess to your account for going over your credit limit.

There is no such thing as a free lunch, and this is especially true for your credit card and the company standing behind it.

If you decide you must have a credit card, make sure it's one that will do something for you, rather than being just another way of hurting your credit rating or increasing your debt loan obligations with sky-high credit card rates and fees.