Sometimes, we are inclined to think of credit cards as the root of all evil. However, like so many other things in life, credit cards are merely tools. How we use them determines their ultimate effect on our personal financial situations. If used impulsively and improperly, credit cards can lead to ruin. If used properly, and if you find the right credit card for you, you can enhance your personal finance situation.

What are the best credit cards for you?

Rather than getting just any old credit card, you should consider your needs, and what you are likely to use the credit card for. Choose rewards credit cards that work in terms of how they apply to you. If you don't travel much, a miles rewards credit card may not suit you. Perhaps a cash back credit card, or one that allows you to earn points toward buying jewelry and other items.

Creating a plan for your credit cards

It is important to have a plan for your credit cards. Just as financial planning helps in other aspects of your personal finance situation, credit card planning is necessary. You need to make sure that you carry a balance for no more than two or three months (it's MUCH better to pay it off every month), or you will negate your rewards from credit cards. I have three rewards credit cards that I use for very specific purposes:

1. Citi Upromise card: online purchases only. I shop through the Upromise site to get the percentage savings for using the card, and the extra savings at specific merchants. This will help fund part of my son's schooling (a small part, though I plan to leverage it with help from a 529 Plan).
2. Capital One No Hassle card: all of my grocery shopping and "big ticket" items (specific purchases of more than $100). This helps me build airline miles for visits to family across the country.
3. WalMart Discover: only use this when shopping at Sam's Club or WalMart (which is rarely). Builds cash back slowly, but every so often I get a surprise check that allows me an extra trip to the movies or lunch out.

I have specific plans for my credit cards. They are only used for specific purposes, and rarely a month goes by that I don't pay off the balance. As a result, I don't accrue interest charges, and I get added personal finance benefits. The key to successful credit card use is to make credit cards part of your regular financial planning and budget, rather than something outside your normal finances.