Monitor your credit

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Do you ever carry a balance on your credit cards?

All credit card users can be divided into two groups. On one hand, you have those who avoid interest charges by paying their entire statement balances in full, each month. On the other hand, there are those who pay something less than their full balance, either sometimes or every month, and wind up paying interest charges. If you are never going to incur interest charges, you should be earning some kind of rewards for your spending in the form of travel rewards or cash back. But if you plan on carrying a balance, it's best to avoid reward credit cards and focus on finding a card with the lowest possible interest rate.

If you are carrying a stubborn balance on your credit cards every month, then you are struggling with credit card debt. You may be able to transfer your balance to a card with a 0% APR promotional financing offer for balance transfers. These offers allow you to avoid interest on your existing debt when you transfer it to your new account. Promotional financing offers last a minimum of six months, but the best ones will extend from 15 to 21 months. However, nearly all of these promotional financing offers for balance transfers will impose a 3%-5% balance transfer fee, which is well worth it in most cases. There are a few cards out there though, that don't charge a balance transfer fee. You'll just need to do the math to figure out which card saves you the most. (See also: Best 0% APR Credit Cards for Balance Transfers)

Are you a frequent traveler?

If you travel more than a few times a year, you can leverage your travel purchases to receive free perks. For example, many airline credit cards offer travelers priority boarding, discounts on in-flight purchases, free checked bags, free lounge access, and more. When using a hotel credit card, you often receive elite status in their loyalty program, which can include room upgrades, late checkouts, and even free breakfast. We’ve picked out the credit cards with the best travel rewards.

Do you want to save up for a big vacation?

Travel rewards credit cards offer extra value for your purchases by allowing you to either get a statement credit for your travel purchases or transfer points to various airline loyalty programs to redeem for award flights and rooms. For easy travel rewards redemption, the most flexible travel rewards card allow you to book on any airline or hotel through any service and get a statement credit for it. Others have additional travel partners you can transfer your points to. The best travel rewards card for you will be the one that gets you the most points for your type of spending and traveling preferences.

Do you make a lot of purchases on your card each month?

For those who can pay off their balances each month, there are many options to get the most value for your spending, including credit cards that offer rewards on gas, dining, groceries, and more. If your purchases vary, your best bet would be a card that offers a flat rate of rewards for all your purchases.

Are you running a small business?

Small business owners will be using their credit card frequently for their company's needs, and they should be using a credit card designed specifically for this kind of use. Business credit cards come with valuable features such as receipt tracking, reports on expenditures, and additional rewards for the kind of purchases that businesses tend to make. But most of all, using a business card allows you to separate your company's expenses from your own, making your life so much easier when it comes time to compile your records and do your taxes. (See also: Best Small Business Credit Cards)

Do you have bad credit?

Most credit cards are available to people with good or excellent credit, but that leaves out a substantial number of potential new applicants. If you have bad credit, you can still qualify for a type of credit card called a secured card. Secured cards work just like standard credit cards, except applicants must submit a refundable security deposit in order to open their account. The amount of your deposit then becomes your credit limit. Nevertheless, these cards usually have all of the same protections of a standard credit card, some even offer rewards, and will help you to build or rebuild your credit.