Credit cards have become a way of life for millions of people in the US, credit cards are used for shopping, entertainment and even buying everyday groceries. There is no limit to the power of the credit card. Almost every company that offers credit cards caters to various needs, there is a credit card that will offer you discount on shopping for groceries, and one that will offer you discounts on movie tickets, the underlying idea is that credit cards should cater to almost all needs. With so many credit card companies in the market today, there is just one question on everyone's mind, how do I choose a credit card for myself?

There are a few basic parameters that a user should keep in mind before going for a credit card

a) Annual Percentage Rate or APR

If you are planning on buying a lot of things in easy instalments, or you are planning on using your credit card to buy a single large item. Look for a credit card that has low APR so that you pay less on the instalments and a lower processing fee.

b)Annual Fee

Another fine print area, most credit card users today are not even aware that they are paying an annual fee for retaining the credit card. The annual fee for some high end credit cards like American Express is pretty high.

c) Balance transfers

Balance transfer is a facility that allows you to pay for one credit card using another, this feature is not supported by all cards. And if you are planning on using a similar method to pay your credit card bills, then look into the charges that are associated with balance transfers.

d) Late payment fees and hidden charges

Some credit cards charge an exorbitant amount for slipping up on payments, you are best advised to sit down with your credit card representative and discuss not only the late payment charges, but also if there are any additional charges for using the credit card.

The best way to go for a credit card today is to determine the purpose it is intended to serve, if you are planning on getting a credit for using once a year, go for one with low annual fees and lower charges. However if you are planning on using your credit card frequently, then look for cards with lower APR's and balance transfer facility. At the end of the day, the ideal card is one that offers you all the facilities mentioned above, at very low rates.