Shopping for a new credit card? Despite the tough economic times, there are hundreds of offers designed for all groups of customers and various types of a credit score. They provide different terms, features and rewards programs. No wonder that many consumers feel lost in the mass of credit card deals available on the market. How to choose the most suitable plastic when there are so many attractive offers? 

If you want to find a good match, it makes sense to work out what type of a credit card user you are. Banks divide all customers into two groups - "revolvers" and "transactors". They have different money management habits, so they will benefit from different credit card features and terms. If you figure out where you lie, you can choose credit card deals which suit your lifestyle and spending pattern.

Transactors are customers who primarily use their credit cards as a payment device, reducing the need to carry a large amount of cash. They pay off their debt in full at the end of the billing cycle. This strategy lets transactors avoid interest charges. They also don’t take cash advances on their credit cards because there is no interest-free period for cash advances.

Good choice: Consider credit cards with various rewards programs. These offers typically have a higher APR than plastic without any rewards. The reason is simple - lenders are not charities, so they try to cover the costs of the rewards programs they provide. If you don’t pay interest, it means that you can just enjoy rebates and incentives at little or no cost! 

Rewards credit cards can vary from cash back offers to exclusive affinity deals. People who enjoy traveling will like frequent flyer or hotel rewards credit cards that offer free flights, hotel stays, vacation packages and other travel-related incentives. Point rewards credit cards will let you accumulate points for every purchase you make. 

Since transactors don't pay interest, it makes sense to take into consideration various fees that you lender may impose. Pay attention to the annual fee: it can be over $100. Another catch is a grace period. It can range depending on the lender. Choosing a plastic with a long grace period, you will have more time to eliminate your debt. Keep in mind that if you miss paying in full by the due date, you will need to pay interest for the full period. 

Revolvers are customers who use their credit cards as a revolving line of credit. They typically make minimum monthly payments and carry their balance from month to month. Thus revolvers accumulate debt and pay the full whack of interest. No wonder that they are favorite customers of credit companies!  

At the current economic environment the majority of credit card users are revolvers. Most of them didn’t plan to have a long term debt, but their financial situation has become dire. Various emergencies, gas expenses, small indulgences and a high APR made up one large debt.

Good choice: Consider credit cards with a low interest rate. It will help you reduce your borrowing costs and eliminate your debt sooner. Keep in mind that it is not the initial borrowed amount of money that takes you so much time to pay off your debt in full, but the interest that you accumulate on your balance.

If you want to freeze your APR, pay attention to credit cards with a zero APR on balance transfers. They are typically available for those who have a solid credit score. You need to fill out an application form and state that you want to transfer your existing balance onto a new card. The interest-free period lasts about 6-12 months. This strategy fits people who want to eliminate their debt and become a transactor. 

Try to ignore the temptation to get a plastic with an attractive rewards program. As we have already mentioned, these offers come with higher interest rates, so very can be rather expensive if you have a large balance. 

What type of a credit card user are you? If you already have a plastic, then you can easy find it out. Find your credit card statements for the past several moths to analyze how you spend money and pay off your debt. If you don’t have any credit cards yet, then think how you would spend money if you had a plastic. Be realistic. Most people intend to use their credit cards as transactors, but they do borrow and accumulate interest.