Thinking of upgrading to a credit card with more perks? Use these 4 tips to pick the one that's right for you

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There are hundreds of credit cards out there offering a myriad of perks and benefits, including the ability to earn travel rewards or cash back for the purchases you're making already.

If you're thinking of upgrading your current credit card to new one that'll provide more of a bang for your buck, financial advisor and Select contributor Kristin O'Keeffe Merrick shared some pointers on the do's and don'ts of choosing (and managing) a credit card with NBC's "TODAY" that are definitely worth considering.

Check out the full interview in the video below and read on to see some of her best tips.

While getting a new credit card can be exciting, it's important to remember that credit is borrowed money — and borrowed money comes at a cost. Issuers charge interest on your balance if you don't pay it off in-full each month.

In her interview, O'Keeffe Merrick cites that a credit card APR's can be as high as 25%, and this can make your total debt add up quickly if you're unable to pay off your balance each month. And if you make a late payment or forget to pay your bill altogether, you can rack up late fees and wind up damaging your credit score.

While you should make it a habit to only use a credit card for charges you can pay off immediately, if you do find yourself carrying a balance, you could try calling your credit card issuer to ask for a lower APR. This could help you save some money since more of your payments will go toward your balance instead of just the interest. Alternatively you could transfer your balance to a card with 0% introductory APR period and use that time to save money on interest charges while you pay off the balance.

Select ranked the Citi Simplicity® Card and the U.S. Bank Visa® Platinum Card as some of the best credit cards with 0% intro APR periods.

Because most balance transfer cards do come with a small balance transfer fee, you'll need to do the math to make sure the money you save on interest will outweigh the fees.

For starters, if you're interested in getting a credit card that offers a lot of perks and a strong rewards program, you'll typically have to pay a larger annual fee. Card issuers charge annual fees to help them offset the cost of offering cardholders numerous features and benefits. So it makes sense that the more perks and benefits being offered, the higher your annual fee may be.

For instance, the Citi Double Cash® Card has no annual fee and offers 2% cash back on all eligible purchases (1% when you buy and 1% as you pay) plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel^SM portal through 12/31/24. New cardholders can earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. The American Express® Gold Card, on the other hand, comes with a $250 annual fee (see rates and fees), but cardholders can earn 60,000 Membership Rewards® points after spending $6,000 on eligible purchases with your new card within the first 6 months of card membership. And in addition to 4X Membership Rewards® points earned on dining and 3X for travel, cardholders can take advantage of $120 ($10 per month) in annual dining credits and $120 ($10 per month) in annual Uber Credits .

“Almost every card has an annual fee associated with it," O'Keeffe Merrick says. "Some of them can be as high as $500, which can be a lot of money unless you’re using the card right.”

If you decide to go with a credit card that has a heftier annual fee, make sure the card is offering perks you're actually going to use. Because while perks like annual statement credit feel "free," you're technically paying for them through the annual fee.

There are many perks that can be offered through travel credit cards besides just a welcome bonus that can potentially be redeemed for no-cost flights and hotel stays. O'Keeffe Merrick suggests considering airline-specific credit cards based on the airline you fly with the most, or based on the airline that has a hub at the airport you typically use. This way, you know you'll be using the card's perks — like free lounge access and a free checked bag — to the fullest extent while you travel.

Furthermore, if you don't travel by plane often or don't even have a specific airline you choose frequently, an airline-specific credit card may not be right for you.

O'Keeffe Merrick also points out that some rewards cards allow you to use your points toward your hotel, car rental and other transportation needs while you're traveling. Or, they just automatically include certain travel protections. The Chase Sapphire Preferred® Card includes an auto rental collision damage waiver, baggage delay insurance and trip delay reimbursement, so you won't have to pay extra for these add-ons.

Aside from welcome bonuses and rewards points, many credit cards offer lots of little perks on things like streaming services, ride share credits and gym membership credits that may also fit your needs and make any annual fee you pay well worth it.

The Blue Cash Preferred® Card from American Express, for example, offers an unlimited 6% cash back on select streaming services, including Netflix, Hulu, Spotify, Apple Music, Disney+ and Prime Video. So if you're already subscribed to many of these services, you can now get rewarded for it and earn some sweet cash back. The card is also offering the Disney Bundle which can include Disney+, Hulu, and ESPN+ with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Preferred Card. Enrollment required.

And if you want a card that does good for the causes you care about, there are now credit cards that can fit your philanthropy. As an example, every purchase made with the Aspiration Zero Card results in the planting of a tree.

At the end of the day, though, you shouldn't be drastically changing your lifestyle in order to keep up with the perks of your credit card.

“They need to be used in a way where they adapt to your life," O'Keeffe Merrick says. "If you don't travel, then a travel card is not for you."

When you're finally ready to make the move and upgrade from your current credit card, considering all the perks and benefits you'll receive can be very exciting. Just make sure you're also thinking about your personal needs and interests and weighing whether or not it's worth it for you to pay an annual fee.

O'Keeffe Merrick also says to keep in mind that borrowed money isn't free. That being said, the healthiest way to use a credit card is to make a purchase and pay it off immediately so you can still get in on the perks without having to pay any additional interest.

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For rates and fees of American Express Gold card, click here.  

For rates and fees of the Blue Cash Preferred card, click here.