Picking a Credit Card

When you turn eighteen all of a sudden credit card companies start mailing you offers. Someone somewhere probably told you that you should get a credit card to start building “good credit” because that will help you get loans in the future. That person is right, however if you choose the wrong credit card and use it poorly, no bank will ever give you a loan. Here are things you need to know about picking a credit card
Why You Should Get a Credit Card
As stated before, credit cards are a good way to build good credit. What that means exactly is that during the four years at college, you use your credit card. This is an opportunity to create a record that proves you regularly pay back money that you borrow. Having a proven track record means that later in life you can ask a bank to borrow higher sums, for a car or a house.
Another reason to get a credit card for college is to get the rewards that a lot of cards offer. Credit cards are a competitive business that is constantly battling to get and keep customers.
How to Pick a Credit Card
There are so many different offers out there that your head spins, so make it easy on yourself.
Choose the Right Program
The credit cards that offer cash back or retail points seem like a lot of fun, but might not be the best choice for you. You have to think about how you plan to use the credit card first. Will you pay off your monthly balance in full every month? If so then the reward cards are great for you. If not, then forget the reward cards and pick one with a low interest rate.
Read the Fine Print
Before you commit to any contract, especially a credit card, read the fine print. Yes it’s boring and yes it’s hard to decipher the legal bumbo-jumbo, but by skipping over this section and just blindly signing is exactly why this stuff is long and boring. The credit card companies want you to be the sucker who blindly signs and then has to play by their rules. Be an adult and comb through the fine print to protect yourself. Getting used to this now will help you in the future. Welcome to adulthood.

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