In the US there are 100s of credit cards offered by a number of banks and issuers. The credit cards features and benefits are numerous. Given all this how can one make the right decision in picking a credit card? Read below for some tips.

Low APR Credit Cards: These credit cards typically offer low (0% - 2.99%) APR for an introductory period, typically 6 months. These credit cards are meant for people who cannot pay their balances every month and want low interest to accrue on them. If you intend to apply for one of these credit cards, also check if the low apr applies to balance transfers as well. If so, you may be able to transfer high APR balances from other credit cards and consolidate. Keep in mind that at the end of the introductory period, regular apr will apply.

Balance Transfer Credit Cards: These credit cards allow you to transfer your balance from another credit card or loan and thus consolidate your payments. These typically come with a low apr introductory period so that you payment as well as interest accrual is low. After introductory period, regular apr will apply which is typically much higher.

Instant Approval Credit Cards: These credit cards allow you to apply online and know the status of your application within minutes. Typically you will need excellent credit. In some cases, the issuer will need additional time to make a decision on your credit card application.

Cash Back Credit Cards: These credit cards allow you to earn a cash back on your purchases. Cash Back typically varies between 1% - 5%. Amount of cash back depends on your purchases and purchase locations. Read details for the credit card for more information before you apply.

Student Credit Cards: These credit cards are typically meant for students who may not have credit history or have bad credit history. In addition, these are meant for those who may not have regular income as they are students.

Business Credit Cards: These credit cards are meant for businesses, typically small businesses. You usually get more leeway on your payments i.e. 60 days instead of 30 days etc. You also typically get higher credit limit as businesses may need to make more purchases than a typical consumer.

Prepaid Debit Cards: These credit cards are usually meant for people who have no credit or have a bad credit and thus will not typically get approved for a credit card. You will have to pre-pay / deposit money with the credit card issuer who will then allow you to make purchased against this deposit. These debit cards are similar to having a debit card from you bank itself. Issuers may impose feeds like activation fee, transaction fee etc. So, read credit card details before you choose to apply for these cards.

Charge Cards: These cards have a restriction on payment. Typically payment is due in full when statement is received.

Rewards Credit Cards: Now a days, all credit cards come with some form of rewards. These rewards can be cash back, airline points, gas reward points, home-improvement rewards etc. With every purchase you make you can get rewards. Cash back and Airline Points are the most popular rewards options that people opt for. Although, with current gas prices, Gas Rewards Credit Card are getting popular as well.

More about this topic in next post: How to Select a Credit Card - Part II