by Joseph Kenny | 11/3/08

It used to be that, back in the day, credit cards were really simple and one-dimensional in nature. Card companies in the past just offered a single card with only basic features. If you wanted to buy something with a credit card, there was often only one set of rules that governed cards from each company, and you adhered to them to obtain the benefits of credit. Fast forward to modern times and you can easily see how that situation is radically different from today. While the fundamental nature of credit cards haven't changed, the application of the concept behind them has grown to expand a wide variety of sophisticated systems.

If you look for a card today, your options can seem nearly limitless. Credit cards come in a variety of levels with different interest rates, bonuses, rewards, terms of use, and policies. There are so many choices out there and ways in which these cards operate that finding the one that's right for you can seem like a daunting challenge. The best way to approach the situation is to determine the nature of your lifestyle and your financial situation, then search for a card that suits the way you live and spend your money.

Of course, despite the wide variety of cards on the market, there are still your standard credit cards. These, however, are often split into two groups: balance transfer credit cards and low interest credit cards. The difference between the two lies in their basic usage. A balance transfer card allows you to transfer a balance from a high interest card to a card with a lower interest rate. This has the potential to reduce the amount you have to pay on a monthly basis and the overall amount that you owe. Low interest credit cards are your standard type that offer a low introductory APR that climbs to a higher rate after a certain amount of time, or a fixed-rate APR that stays low. These are often the ideal choice for the prudent consumer that is looking to improve their credit and not depend heavily on charging purchases.

There are also credit cards that come with rewards programs. You probably hear a lot about these on television and online. The rewards vary greatly, but the essential idea is that you earn incentives for making purchases with the credit card of your choice. These incentives are often times fixed to particular purchases or rewards however, such as gasoline purchases, hotel stays, retail products, and discounts towards future new or used vehicles. For what they offer, these cards often require a user to possess a high level of credit in order to obtain them.
For those with no credit who are just starting out in college, there are student loan cards. These are great for establishing credit when you don't have any, but they must be handled carefully, because their interest rates are often extremely high and the terms of use involve heavy penalties and fines for abusing credit. Also, if you have bad credit, you can obtain a secured credit card, which involves paying the lender a certain amount to act as a deposit to compensate for the risk you pose as a borrower. This "secures" the debt you may owe, so to speak.

In the end, there are a great number of cards to choose from. However, no matter what card may attract your interest, you should always carefully examine your options and read the details regarding card policies and usage terms.