• There are approximately 1.2 billion credit cards currently in use in the United States, but which one is right for you? Low APR, membership rewards, long grace periods, balance transfer offers...there are multiple factors to consider when applying for a new credit card. To choose from all those cards you're supposedly pre-approved for, or to find a card you haven't received an offer for, you'll need to analyze your lifestyle and how you use credit on a regular basis. The average American carries between 10 and 15 credit cards, while some individuals have up to 40 or more. To eliminate the cards that aren't benefiting you and choose the one that will best meet your needs, read on.

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What's in your wallet? (Creative commons photo by Mike Linksvayer)

• Before finding the right card for you, you'll need to determine how you use your credit cards and what factors are important to you.

• Use the Federal Reserve Board's handy checklist to outline the credit card features most important to you.

1. Annual Percentage Rate. This can vary from as low as 0% (usually for an introductory offer that lasts only several months) to upwards of 20%. The average APR is currently around 13%.
2. Grace Period. This is the "free period" in which you must pay your bills. Cards that offer no grace period start charging a finance rate from the date of statement, so if you wait a few weeks to pay, you are paying more in interest. Average grace periods are 15-25 days.
3. Annual Fee. Annual fees vary widely. For cards offering full concierge service, automatic upgrades, and other benefits, fees can be upwards of a few hundred dollars. Other cards charge a more nominal fee, around $35 per year, perhaps to be part of a rewards program. There are many credit cards available that have no associated annual fees.
4. Credit limit. This is the upper limit on what you can spend.
5. Rewards. Cards will offer various rewards, ranging from airline miles to cash rebates to a general system of points that can be used for all kinds of purchases. Research airline mile rewards carefully, as programs vary significantly and can involve a range of fees and restrictions.
   • • There are also cards "sponsored" by companies you might use frequently, like Amazon or L.L. Bean who will offer discounts for their products when you use your card.
6. Late fees. Late fees are usually around $30-35 a month, but some cards penalize you with higher late fees, or might increase late fees with more than one late payment.
7. Other penalties. Some cards will increase your APR with late payments or charge fees for going over your credit limit or using a cash advance. Be sure to check the fine print of your credit card contract to determine these oft-neglected details.

• A couple of key online resources will help you narrow down the card for you.

1. Go to CNN Money's card search tool and use their interactive menu to select features that are important to you.
2. The site will generate a list of the top 10 current credit card offers that meet your criteria. You can see the next 10, and so on if the first group is not to your liking.
3. Or go back and reselect the options that are most important to you.
4. Then analyze the results to figure out what card is best.
5. CardWeb is another terrific resource for finding the right credit card for your particular lifestyle.
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     CNN's search tool will list features of the best suited cards.

• Now that you've narrowed down a few cards of interest, it's time to double check their offers.

1. Go to the websites of the cards you've chosen and read all their rules.
2. Be sure you understand how/why a credit card company can raise your rates, when an introductory rate will expire (or if a late payment will automatically increase your rates), and what the annual fees and late fees are.
3. Call their customer service department for any further clarifications.

• Every application for credit means a deduction from your credit score.

1. You only want to apply to the few cards you truly think are a good match.
2. Don't be swayed by tempting rewards offers. Many cards lure you in offering free airline miles or other bonuses that may take years to achieve.
3. Avoid department store credit cards unless it is a store you will shop at often (so the benefits are ones you will actually take advantage of) and you are able to pay off your balance in full each month—store cards are notorious for charging high rates upwards of 20%.
4. Apply to cards one at a time to conserve deductions to your credit report. If you are turned down for a card, you might need to take the time to determine why before rushing into another fruitless application.
5. Many cards offer almost instant responses to credit applications.
6. You can make most of your applications online or on the phone, or you can mail in an offer you've received.

• Credit card delinquencies rose 26% since last year; avoid becoming a statistic by using your new credit card with caution.

1. Review Mahalo's guides to saving money, curbing spending, and getting out of debt for advice on managing credit, even if gets a little out of control.
2. Follow the golden rule of using credit: don't buy what you can't afford, and you'll stay out of debt.
3. Make sure you make regular inquiries to check your credit report so that there isn't any incorrect info that might allow your creditors to increase your rates.
4. And now that you've found the perfect card(s) for you, you can squelch the steady stream of credit card offers you receive in the mail. Call 888 5-OPTOUT, and have your name removed from preselected lists at the three major credit bureaus.