If you're planning to go through the process of getting a new credit card, there are hundreds of options available, even though not all would suit you. While credit card offers may come in plenty, there are several things that you must consider before applying for a credit card, mostly depending on how you intend to use it. This article will look at what to look for when choosing the best credit card for you.

1. Interest Rate

Credit cards can be a powerful financial tool, but only if you utilize them effectively. But before we get to use it, choosing one wisely is the first step. Most credit cards lure you with an introductory interest rate, or APR, of 0%. The Annual Percentage Rate (APR) is the cost of borrowing on the card if you don't pay the whole balance every month.

While a 0% APR may seem to be a good deal, make sure to pay your balance during the promotional period, or else you'll have to pay the new interest rate of up to 25%. The best thing you could do to avoid getting caught off guard is to research and know when the promotional period ends. Since the end goal is to manage your finances, you can also shop around to compare the APR for different cards and choose the cheapest, as it will save you money in the long run.

2. Loyalty Points and Rewards

Before getting a credit card, you have to carefully look at the rewards you will earn if you pay at the end of every month. Most cards use three earning styles; that is, flat-rate reward cards that give you the same rewards on every purchase that can earn rewards; tiered rate rewards that earn you bonus rewards; and rotating reward cards that have revolving bonus categories.

The best reward deals you can get are for cash back cards that return a percentage of your spending to you. Travel rewards are also perfect, as they earn you points or miles each month you use them for travel, which can save you money.

Loyalty points add up according to how much you spend on goods, and you can use them to buy goods. In general, with loyalty points and rewards, you have to check how much you get, and how likely you are to use them, as it saves you money.

3. Annual Fee

Some cards charge a yearly fee for you to use them. This may end up hurting your finances, as the fee is added to the amount due at the end of the year and you have to pay it in full or risk being charged interest on it, as well as on your spending. However, the good news is that there are so many credit cards on the market that you don't have to pay to use one.

Most cards offer rewards and cashback as long as you pay the annual fee, but it's not worth it if you can get the same rewards on a card that doesn't charge an annual fee. However, the fee may be worth it if it pretty much pays itself through the rewards and benefits that you're actually going to use, whether it's car rental insurance or an airport lounge. It's always up to you to research and do the math to avoid falling into a trap that may leave you bankrupt.

4. Credit Limit

If you're looking for a new credit card, it's crucial to know the credit limit it offers. Your credit limit dictates how much credit you can use before you're no longer able to continue spending. Credit card issuers draft the limit according to your credit history and your relationship with them. 

Since you won't know your exact credit limit before you apply and get approved, it's crucial to check on and improve your credit score in advance and pay your bill on time if you want to get a higher limit.