The first step in choosing a credit card is determining how you will use it. If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don't interest you--your best choice may be a card that has no annual fee and offers a longer grace period.

ID you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).

If you plan to frequently use your card to get cash advances (from bank or an ATM), you'll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards actually charge a higher APR for cash advances than for purchases.

Another major consideration in choosing a credit card is APR--annual percentage rate--the way of stating interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states interest as a yearly rate. A single credit card may have many APRs. For example, your card may have one APR for purchases, another for cash advances, and yet another for balance transfers.

There are also tiered APRs where different rates are applied to different levels of outstanding balance. For example,, 16% on balances of $1-$500, and 17% on balances over $500.

A penalty APR is another possibility. The APR may increase if you are late in making payments. Your card agreement may say, "If your payment arrives more than ten days late two times within a six month period, penalty rate will apply."

Then there is infamous "introductory" APR. A different, and most certainly higher rate will apply after introductory rate expires. Always find out how much new rate will be before signing any agreement.

Finally there is delayed APR. A different rate will apply in future. For example, a card may advertise that there is "no interest until next July." Be sure to find out what APR will be after July.

1. Buying a home before you are ready for home ownership

Lots of people get pressured into buying a home by well meaning friends and family who tell them what a waste of money renting is. While renting does not build equity, it comes with a whole lot less responsibility and expense than home ownership does. Take your time and don’t buy until you are ready to buy.

2. “Falling in love” with house.

This happens when we are overwhelmed by emotional aspects of buying and spurred on by subtle pressures of seller and their agent. Just like we tend to overlook faults of people we love, a buyer who falls in love with a house might end up overlooking flaws that will haunt them later.

Buyers often find out things after sale that might have stopped them from buying if they knew in advance. Although Agents and sellers are obligated to disclose certain defects or circumstances about a property, those requirements may not cover everything that you’d want to know. After reading disclosure list, if any, ask specific questions about anything else that’s important to you. For example, if idea of living at a former crime scenes turns you off, ask if any major crimes or incidents occurred at home.

3. Misunderstanding loyalties of Real Estate Agent.

In most areas Real Estate Agent represents seller and not buyer. That means that you can’t expect agent to keep anything you say from seller. If you’re offering 200k, but you’ll go to 210k if you have to, keep that secret to yourself. If agent knows your top limit then he or she is actually obligated to tell seller if that’s who they represent.

4. Overpaying because of pressure or deceitful sales tactics.

Buyer soften pay more than they have to because they are warned that there are “other offers” being considered so they need to make their highest offer first. That may or may not be true, but never make an offer that’s higher than you would make without any outside pressure. An offer is legally binding if it’s accepted and you’ll have to live with that buying price for a long time to come.

Another reason buyers overpay is because they don’t realize that anything can be negotiated including closing costs, inspection fees and price of repairs. Real magic happens when a motivated seller and an earnest buyer sit down to conduct business.

5. Failing to get mortgage pre-approval before shopping