The first step in choosing a credit card is thinking about how you will use it.

• If you expect to always pay your monthly bill in full -- and other features such as frequent flyer miles don't interest you -- your best choice may be a card that has no annual fee and offers a longer grace period.
• If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
• If you expect to use your card to get cash advances, you'll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.