Do you encounter a lot of ads every day? If you do, then you probably know that many of these ads arrive in the form of unsolicited email and bulk postal mail for different kinds of credit cards. These advertisements use different tactics and offers to convince you to get their cards. They will try to tempt you with staggeringly low introductory interest rates, no annual fee credit cards and other possible rewards and incentives. You may find it hard to cut through all of the advertising jargon and determine which best credit card would be best for your financial situation.

In my opinion, we would find it a lot easier to find a few good prospects out of the myriad of offers for travel rewards cards, no annual fee credit cards, low interest credit cards, and the other kinds of credit cards if we can use a simple cut and dried algorithm. Of course, you can also try a careful examination of your spending habits along with a little bit of calculation to determine the best card offer.

You should also keep in mind that credit card companies issue credit cards because they want to make money through finance charges and/or annual fees. This means that no annual fee credit cards will usually have higher interest rates than cards that charge an annual fee. It would be wise to consider how you use your credit cards so that you can determine whether you will benefit from a no annual fee credit card or a low interest rate credit card.

If you always pay off your balances in full, or carry very little balance, then there's a good chance that you can benefit more from no annual fee credit cards. This is because no annual fee credit cards tend to offset the savings from having no annual fee by charging higher interest rates than other cards. Your finance charges will be low, regardless of interest rate if you can keep your balance low.

You should also remember that the interest rate will become much more of a factor, if you carry large balances and do not pay your balance in full. If you handle your credit account this way, then no annual fee credit cards may not be the best choice for you. The credit card with the lowest interest rate may be the best option in your case, because the savings you will get from paying lower finance charges will offset the annual fee that you will be required to pay.