Choose a Card According to Your Payment Habits

Different cards fit different needs. Some charge lower interest rates but may carry an annual fee. These would be a good choice if you tend to carry a balance (the savings you get from the lower interest rate may exceed the annual fee). Many cards charge higher interest rates but don't impose an annual fee. These would be a better choice if you pay off your balance every month (if you don't carry a balance, you're not affected by the interest rate). Other cards offer rewards for certain levels of usage. These rewards (frequent flier miles or rebates for example) may be attractive to people who travel often for business.

Use Cards with Care to Protect Your Credit Rating

Using credit wisely means:

• Controlling your spending.
• Paying your bills promptly.
• Paying more than the minimum amount due.
• Keeping copies of your receipts and checking them against your monthly bill.
• Keeping a list of all your account numbers in case cards are lost or stolen.
• Guarding against card fraud and identity theft by cutting up your old cards and shredding statements and unwanted credit card offers.