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Step 1
Learn your credit score by obtaining a credit report from one of the major credit-reporting agencies. You have a right to know the information that's contained on your credit file. Different agencies use different grading systems, so inquire with the specific reporting agency for more information on where you fall on its credit scale.
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Step 2
Take the time to improve your credit score if it's low. Pay off any delinquent or outstanding debts that may be lingering and dragging your score down, and clear any outstanding credit card debt. Then continue to use your credit card, but pay it off in full every month, ending with a zero balance after payment.
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Step 3
Study your credit card spending patterns. Get an idea not only of your total annual expenditure on credit cards, but also how much of that debt you carry from month to month. Make a note of this figure, since you'll need it to figure out how to get the best credit card rate.
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Step 4
Compare the annual percentage rates (APR) of the credit card offers you receive by mail. Most of these are preapproved cards and targeted to people in your credit score range by credit card companies, so you may be unlikely to get the best possible rate by responding to them. Use your estimate of your total annual expenditure and monthly balances, figure in the annual percentage rate and add in any annual fees or account charges associated with the card to see which one is the best deal.
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Step 5
Go online to compare the various rates and apply for the card with the best set of terms. A site like Bankrate can introduce you to a wide variety of financial services products from the world's most popular names--Visa, MasterCard, Discover and American Express (see Resources below).
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Step 6
Apply through your bank, particularly if you have a long history of exemplary credit. Banks tend to reward customer loyalty and might even sweeten the deal with interest rollbacks and fee waivers. Often, if you have excellent credit, applying for a credit card through your bank is the best way to go.
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Step 7
Ask! If you have a higher-interest credit card and you've been a good customer, credit card companies are often willing to offer you a lower interest rate or better overall terms if you call their customer service department and request a rebate. They would rather have you paying 12 percent instead of 18.99 percent if they would lose your business otherwise.
