Which credit card you need depends on how you use credit. Do you pay your bill in full every month or carry a balance? Having a low interest rate credit card if you pay you bill in full every month makes little sense. Apply for a rewards card instead.

New federal credit card guidlines for 2006 may raise the minimum monthly payment required. Though many people will not like the increase, the new rules will actually help most consumers in the long run. In the past paying only the minimum required payment didn't cover much more than interest charges and credit card fees. The higher payment will mean more of your payment goes to actually paying off the debt. The debt will be payed off sooner and hopefully the higher required payments will encourage people to pay off one large purchase before making another.

0% Intro APR Carry a Balance Large Purchases Pay Off Slowly Balance Transfers Click to View Offers

Rewards Credit Cards Pay in Full Every Month Buy Groceries Buy Gas Buy Clothing Click to View Offers

If you need to make a large purchase or plan to remodel your home a 0% Intro APR card can save you money. Make sure the 0% intro rate is long enough that you have time to pay back the purchase.

If you are paying finance charges on a current credit card you may want to transfer the balance to a low interest rate or 0% intro rate credit card.

Everyday things you normally pay cash for like groceries and gas can be purchased with a rewards card. This can allow you to get cash back, airline miles, help you save for a new car and lots of other options. The key is to pay the balance in full every month! Be sure to read all the terms and conditions on the card issuers web site. Many have limits on the rewards you can earn.

Many rewards cards also offer 0% Intro Rates. This gives you the best of both worlds. Make a large purchase and pay it off before the intro rate expires and earn rewards.

Most people will want several types of credit cards for different situations.