Choosing a credit card

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When you are deciding which credit card to get, ask yourself one question: Will I be paying interest on my debts?

According to a report by www.nerdwallet.com, if you pay your credit card balance in full and on time each month, then you won’t be charged interest. In that case, it is worth it to get a credit card with rewards.

These cards give you points, cash or airline miles every time you use them. However, rewards cards have higher interest rates; high enough to wipe out the value of the rewards you earn.

That brings us to what to do if you do carry a balance (in other words, you don’t pay off your debt every month). You will want to minimise your interest payments, so you should pick a credit card that has a low interest rate.

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Your credit card is issued by a bank. The bank determines your interest rate, fees and rewards, so it is important to find a bank that offers a card you like.

In general, the better your credit score, the better the cards you can qualify for. The most generous rewards rates, the best perks and the lowest interest rates are available to those with excellent credit.

Choose a credit card that is optimal for your needs. If you carry a balance, you can find great credit cards that specialise in low interest rates.

Remember that you will need a co-signer on your card even after you are 21, unless you have your own source of income.

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Having a credit card is better than not having one, but not having a credit card is much better than misusing one.

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