When choosing a credit card, ask yourself if you plan to pay the balance in full each month. Many people don't pay their bill each month -- they always carry a balance and pay interest on it. Yet many of these same people sign up for a card because it has no annual fee, without considering the benefits of a card with a lower interest rate or a more generous grace period (before interest begins accumulating). In the long run, a card that doesn't charge an annual fee could end up costing you far more in interest than a card that charges an annual fee.
In general, if you expect to pay your balance in full most months, look for a card with a full grace period and no annual fee. However, if you plan on carrying a balance, then a card with an annual fee and low APR (Annual Percentage Rate) may be a better choice.

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