Every credit card commercial shown these days boast about credit card perks. This one gives frequent flyer miles without blackout dates; another says you can choose between points, cash or other types of rewards. How does one determine which is really the best?

There are a number of issues to look at when you decide which credit cards to obtain and which ones to pass by. Consider the pros and cons of each before you make a decision. For a person who travels a great deal, the frequent flyer miles will probably rank fairly
high in the pros column. However, for someone who is a homebody and prefers to not fly or travel far from home, getting cash back on qualified purchases would probably ranker higher on the pros side of that list.

That brings up another question, what exactly is a qualified purchase? Does that mean that certain purchases do not qualify for cash back? How do you know the difference? Make sure that the term “qualified purchase” is clearly defined.

What other types of rewards are available? Can you switch back and forth between the various rewards that are offered and if so, at what expense?

In addition to these questions, prior to filling out that credit card application you may want to consider items such as; the annual fee, cash withdrawal fees, late fees, credit limit and the always important interest rate. In other words, will this particular credit card meet all of your personal needs or is another card better suited for your lifestyle?

Be sure you consider each item individually as well as collectively.

► Annual Fees: These can range from $35.00 up into the $200.00 plus range.
Do you mind potentially paying $200.00 or more per year for the privilege of obtaining credit from this particular company?

► Cash Withdrawal Fees: To discourage customers from doing this, the fees are usually rather high as is the interest rate on the amount withdrawn.

► Late Fees: There are always late fees if your payment is late.
Not all credit card providers have the same length of time prior to charging this fee. Some do not charge the late fee until the payment is ten days late, others charge after just three days. Exactly how much is the late fee? Late fees can start as low as $28.00 or more frequently $36.00, others charge a percentage of your current balance. Make sure you know exactly how and when the late fee is calculated.

► Credit Limit: Does the card offer you a credit limit that makes having the card an asset to you?

► Interest Rate: Watch out for the introductory rates which are typically much lower than the actual interest rate once a short time period ends.

► Frequent Flyer Miles: How are they earned, when are they paid and what types of blackout dates apply? It does no good to get great airline ticket prices if you cannot use them when you need them.

► Cash Rewards vs. Points: What is the difference and can you switch between them at will, only once or not at all?

Ensure that you have asked yourself all of these questions, and determine which credit card company is going to best suit your needs. Remember, they are soliciting your business! Ask yourself if this company is worthy of receiving your business or if you should take it some place else.

Taking a few, easy, security precautions, you can significantly reduce your chances of becoming the next victim. Think about how you handle your junk mail. Many people do not consider it to be anything more than just that – junk – and quickly toss it into the trash. However, if that particular piece of mail is offering you any form of credit, throwing it into the trash is like handing a thief an open invitation. Some people feel comfortable simply tearing it in half before throwing it away. To reduce the risk of someone stealing the information and fraudulently obtaining credit in your name, shred the mail instead. It only takes a moment.

Never, never, ever throw away bank statements, credit card statements, medical statements of any other financial document into the trash without first shredding it. Shredders can be purchased for as little as $20.00, and should be your first defense against possible identity theft. Cross paper shredders run a little higher, but offer a higher degree of security. The difference between a regular shredder and cross shredding is the size and shape of the paper particles left in the shredding bin. The smaller the pieces, the less likely they are to be put back together. The idea after all is to make life difficult for a potential thief.

Another critical component to keeping your identity yours, is to turn your computer off when it is not in use. Some people leave their computers on all the time. From a security stand point that equates to leaving your house unlocked with all of your valuables plainly visible to every passer-by. This is especially true if you have wireless or cable internet, pay your bills on line or keep personal or business account numbers listed on your computer.

Many people pay their bills via the internet. The programs available for tracking home and business expenses make it much easier to keep up with budgeting and such. However, leaving this information unsecured is akin to posting it on the local bulletin board. No one would do such a thing, it is simply too dangerous. If you chose to pay bills online, simply ensure you have proper firewalls; intrusion alerts and use only secured internet sites for doing any online accounting or banking. It is never a good idea to leave account numbers or access codes on any computer.

In addition to shredding documents and basic internet safety the one thing that is probably the most important of all, is to keep track of your credit history. There are multiple companies that, for a small fee, will track your credit for you and notify you if there are any changes. Those changes include anyone, including yourself, applying for any type of credit in your name, or accessing your social security number for any reason.

Many of these types of services are available through your credit card companies. Read the fine print. See what is available and which services will best suit your needs.

Your good to excellent credit rating makes you a target. Taking these few simple steps to protect it could very well be the wisest investment you ever make.