Credit cards are one of the biggest problems families face. Far too often people charge up just about anything and everything because they assume they will be able to pay it back. Even if your intentions are good, you still may run into problems paying back the money you have borrowed. Credit card interest rates can cause you to pay thousands of dollars back to the credit card company if it takes you more than a year to re-pay the money you borrowed. There are a few credit card options out there that may help you save some money.

Pull a copy of your credit report and score before you start contacting your creditors. Credit card companies are often un-willing to work with individuals that have poor credit. If you have fair credit, be prepared to get stuck with higher interest rates and fees. Always read the credit card terms before you activate a credit card. Unfortunately, credit card companies like to offer you one thing and give you another. You might be thinking you are racking up some free sky miles when you are really racking up interest rates. The sky mile bonus won't kick in until you have spent a certain amount on the credit card and until you have been a credit card member for a designated amount of time. If you find this out after you open the account, call the credit card company and discuss your options. You may want to close the account, although it doesn't look good on your credit report to continually open and close new credit card accounts.

The best way to pay down your credit card debt is to open up a low-rate credit card. Usually you can transfer your balance on existing credit cards to this low-rate or 0% interest rate credit card. As long as you don't use the card to purchase anything else, you will keep a low rate for 12 months, sometimes longer. You also cannot be a minute late with your payment or else that low rate will skyrocket to a higher one. Chase Financial Services is know for offering 0% interest rates to their card holders, then bumping those rates to 20% or higher if you have a late payment. Always find out what the penalties are before you sign up for a low interest rate credit card and make sure you can pay your bills on time.

To avoid late payments, pay your bills online or sign up for automatic payment withdraw. Credit card companies are known for changing their payment address and if you mail your payment to the old address, it could take a few weeks for the mail to be re-routed. This will cause you to get a late payment fee, which can be pretty expensive and it will increase your interest rate. If you like paying by check, pay your bill as soon as possible. Some credit card companies will give you a kick-back at the end of the year because you are a good customer.

Here are a few of the best low-cost credit card options:

Low Rate Credit Card
Low-rate credit cards are the ideal solution for individuals that carry-over their monthly balance. If you do not have good credit, it will be hard to get a low rate credit card. Since low rate credit cards are so popular, they have a large screening process. You normally need to fax them a copy of your recent paystub, fill out an application, and you might even need to fax in a copy if your taxes. The entire process can take a couple weeks because the bank doesn't want to take on customers that are at a higher risk. If you have ever defaulted on your payments in the past, you probably won't be accepted for a new card.

Another thing to watch out for with the low rate credit cards is the annual fee. Depending upon the reward plans and other services that are attached to your credit card, you may be stuck paying outlandish annual fees. These companies will give you "free" gift cards for spending so much money and then about 3 months later they will charge you an annual fee of $35 or more.

Gas or Cash Rebate Cards
The rebate cards are the best card options for credit card users that charge a lot and pay-off a lot. You have to spend a certain percentage of your credit card before the credit card company will start giving you back money. These cards come with a bonus rebates on specific purchases. So if you spend $300 on gas each month, you will get about 5 percent back. That is a pretty good rebate for anyone that buys a lot of gas each month.

Before you sign up for the credit card, find out where you can shop. Most rebate cards will give you back money or gas credit for shopping at certain retailers or drug stores. The percentage rate is normally around 5 percent for purchasing at the listed retailers, and then it will be about .5 percent for other purchases. In order to get the percentage rates, you will need to spend a set amount of money each year.

You have the option of choosing how to redeem your rebate. Some credit card companies will offer gift cards to vendors like Cinemark, Old Navy, Blockbuster, and Sharper Image. If you want cash back, you will be given a gift card over a check. The credit cards that come with cash back rewards in the form of checks normally have higher interest rates.

Rewards Cards
The reward cards are similar to the cash back cards, only you need to collect a certain number of points before you are given the reward. Usually the rewards start out small, gift cards for Old Navy, The Gap, and movie theatres. If you choose to keep accruing points, your rewards will be higher. The gift cards will bump up from the $25 amount to the $50 - $100 amount. You can also choose rewards like air fare or vacation deals. In order to get the highest rewards, you need to use your credit card a lot and go to retailers that are on their list. If you want a reward card, stick to the big companies like American Express and Citi. These companies offer frequent-flier miles and they will transfer your miles right over to the airline when you are ready to go on a vacation.

While rewards cards come with their fair share of benefits, they also come with hefty annual fees. They also boost up the interest rate if you are late with one payment and they are un-willing to negotiate that interest rate if you are late. If you want a reward card, shop around and look for one that doesn't have hidden fees. Find out how many points you need before you can start redeeming your rewards. Most credit card companies will not offer the reward until you have accumulated at least 1,500 points. These rewards are the small ones like $25 gift cards to the Gap.

When you are shopping for a credit card, talk to the customer service agent about your limit. In order to maintain a high credit score, you should never use more than 30 percent of your total credit limit available. If you abuse your credit cards and constantly go over the limit, you will be nailed with penalty charges and high interest rates. You also need to be weary of the credit cards that offer balance transfer programs. While this may sound good, the balance transfer could put your new credit card over the limit. They might also charge you for doing the balance transfer.

Another thing you need to watch out for is cash advance fees. The cash advance fees are really pricey, usually 20 percent or higher. It is never a good idea to take cash out of your credit card, avoid doing it at all costs. The interest rate for cash advances will start immediately; you do not get a grace period. Each payment you make toward the balance of the credit card will go to the lower interest rate first. So if you have a balance of $1,000 and only $100 was used for cash advances, you will pay off the other $900 before your payments will impact the cash advance amount. You will also pay an upfront fee to take cash out of the credit card.

Watch out for credit card companies that pull your credit report and use it to determine if you should be charged a higher interest rate. Several credit card companies will justify raising your interest rate because you were late with your auto or mortgage payment. Always read your agreement first because some credit card companies can just raise your interest rate whenever they want. These companies will not negotiate a lower interest rate with you, so it may be easier to pay off the card and open a new one.