Comparing credit card offers can be a nightmare task if you are unfamiliar with all of the options and fine print that goes with each credit card application. Typically, all card offers now have some form of extra or bonus to entice you to select their card. What they don't tell you up front is that many of these "bonuses" also contain hidden conditions that can get you into hot water if you are not careful during the selection process.

Do you plan on carrying a balance? - Generally cards that offer reward incentives carry a higher APR, if you don't plan on carrying a balance then this does not affect you. Also many of the rewards programs have restrictions on them when you miss a payment or when your account is not in good standing.

Do you like to save a little on your retail purchases by getting cash back from the merchant? Do you have a favorite hotel you always use when doing business travel? You need to ask yourself what you will be using the credit card for first and then select the offer to match your needs, not the other way around.

Will you be replacing your current card or adding a new one to your collection? A typical feature of most credit card offers is the ability to transfer your old card's balance to the new one. Some cards will allow you to transfer the balance for free and carry it at a 0% interest rate for a introductory period of time. Some will even allow you to carry the balance interest free until you completely pay off the balance - a handy feature especially if you are carrying a large balance on another card.

Reward Programs

There are an array of reward programs to choose from however there are three main categories, miles, points and rebates.

Miles - You earn Miles for airline ticket purchases or other predetermined purchases

These cards are great if you are a person who does a lot of air travel and already have a favorite airline chosen. But beware, cards in this category typically have a large annual fee associated with them reducing the benefits you receive from the card unless you are someone who uses the card often.

If you are a person who uses your credit card a lot and pay your credit card bill in full each month then this type of credit card may be worth applying for.

Points - earn credit for retail purchases by using your card at selected merchants

Retail points reward programs may be the most popular and widespread of the reward programs available. Seemingly every retail outlet you can think of has their own credit card offer with a points system which allows you to save money on purchases by redeeming the points for goods at the retail outlet.

Retail credit card offers are tailor made for people who do a lot of shopping at a particular store. If you have a store you frequently shop at, make sure to see if they have one of these credit card offers which can help you save money when you shop there. Just be sure to pay your balance each month or you will lose the value of your points because you will be paying interest on this balance.

Cashback - get money back in cash form for using your credit card

Earning cash back on your purchases sounds like a great idea but can get you in trouble if you abuse the card. Make sure to pay that credit card bill each month or the cash back you have earned will simply be used to pay off your balance, not what you intended when you signed up for this type of offer.

Cash back cards can also be tied to a service or merchant such as gas cards, hotel cards, auto rebate cards and many others.

Keep this in mind. All of the rewards, points, miles and introductory rates are only as good as your credit habits. Missed payments often void your introductory rates and many times will negate the rewards you have earned. Always read the issuers detailed terms and conditions before applying for a card so there will not be any surprises