Picking a credit card can be overwhelming, given the number of options on the market. If you're considering a new credit card, start by examining your spending habits.

Credit card users fall into two groups: those who pay off their balance every month, and those who carry a balance from month to month. You should focus on different features depending on which group you fall into. (If you don't have a credit card already and aren't sure how you'll use one, assume you'll carry a balance at least some of the time.)

Carrying a balance

If you carry a balance, you're paying interest on your purchases. That means the interest rate is very important to you, since a lower rate means lower payments and more money saved.

Watch out for introductory offers with a low or 0% rate, as they often come with high interest rates after the promo is over. Look for a credit card with a rate that's low all the time so you don't pay more in the long run.

Paying off your balance

If you don't carry a balance, you're likely not paying any interest. You should avoid cards with high rates in case your situation changes, but other features likely matter more to you.

Many credit cards offer rewards programs where you can earn cash back, points or miles as you make purchases. A lot of cards come with free perks, too. Some are more general, like travel insurance or free checked bags when you fly, while others cater to specific interests or hobbies, like wine or golf. Find a credit card that matches your lifestyle so you can take advantage of the features offered.

No matter how you use your card, check the annual fee. While you may get enough out of a rewards program or other perks to justify paying one, there are always options without.

If you're looking for a new credit card, be sure to compare our options. Our Visa Signature^® card features up to 2% cash back^◂, and you won't pay an annual fee^† with any Veridian Visa^®.