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Usage of credit cards can get addictive if you realize how easy they can make life for you. There are many people who depend on the credit cards for their day to day expenses. This has lead many credit card companies to take advantage of the dependency. It is least surprising to see so many players in this field and each of them seems to be doing pretty well too.

If you are new to credit cards and are wondering how to select the best credit cards or if you are one of those who has had a horrible experience with credit card companies and have decided to select the best credit card companies in future, here is how you can move forward:

Concentrate on the rate of interest

The APR or annual percentage ratio is one main factor that must shape your decision. Banks usually compound the interest over the period of 12 months. If you have to know exactly how much you will have to be paying, the APR will help you figure it out. You will have to divide the APR by the 12 and you will have the cost that actually matters to you.

You are opting for the credit card in the first place because making full payments for your purchases each time is not feasible, so APR is surely going to matter when you take time to make the payments. Many people get misled by the APR advertised by the banks. This is because some banks have an introductory APR rate which changes to a much bigger sum in the future. When deciding on the credit card, never go by the introductory APR, instead lookout for what you have to pay later.

Lookout for rewards

You are going to be using these cards and hence will qualify as loyal customers to the company. With a lot of competition among the credit card companies, the companies are now offering benefits to customers in terms of reward points for every purchase. This is one way the customer earns at least a part of the amount he spends, though in terms of goodies.

Take note of the annual fee

The annual fee varies between credit card companies. Some may waiver the annual fee taking into consideration the number of transactions you use the card for.  Of late, there are very few banks that will not levy annual fees so the best you can do is look out for the most economical one.