There are several factors to keep in mind when picking a credit card, but the most important one in my opinion is that it should have NO ANNUAL FEE. There are so many credit cards available without an annual fee that I don't see any reason to get one that does. The main benefits with a credit card are already achieved through a standard one, so one with an annual fee doesn't seem justifiable no matter what marginal bonuses are added on. And annual fees are like a guaranteed cost. They are not necessary and should be avoided in looking for a credit card, at least when you are starting out. For many of the other readers on this site, if you do spend a lot of money each year for your entire family, these cards may make a lot of sense. For me or any other college student, however, almost every credit card should be annual fee free.

The second thing I look at is the rewards. Most cards give 1% back as a basis, either through cash back or points, and have additional benefits on special vendors or in revolving categories. This is how you measure the potential return a card can give you on how much money you spend. There is often also a nice signup bonus where you can get $50-$100 after your first purchase or spending a set amount of money in a set amount of time after receiving your card. Also, I personally prefer cash-back but there are other options such as points and miles that you may prefer. It is important to look at what rewards program your card will offer and if it matches your tastes. I'll mention some of the rewards with certain cards below.

The third thing to look at is the network. I generally find card acceptance for networks fall into two tiers: Visa and Mastercard are the most widely accepted while Discover and American Express seem to have lower acceptance, although this has recently been changing. I believe that Discover's student credit card is fairly popular, and I generally don't have too much problem with its acceptance at vendors in general. Depending on how much of a credit history you have, I would recommend trying to get a Visa or Mastercard, all else being equal (rewards and annual fees).

Another important feature to pay attention to is the APR (annual percentage rate). However, I would say this is the least important number if you do what I do and pay off your entire bill at the end of each month. The APR is the interest rate charged on any unpaid debt after the grace period. I'll have to admit that I don't know the APRs of any of my credit cards simply because I never pay interest. This number generally varies between 10-20% but may be higher or lower and it is very important to pay attention to it if you are someone who is likely to be unable to fully pay the balance on your card at the end of the month.

What are some of the other things people pay attention to when choosing a card?