Students
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Selecting a Credit Card**
A credit card can be an incredibly useful financial tool — so long as you use it wisely. Here are a few ways a card can be of use:
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Building Good Credit
You buy things, and then you pay for them — it's really a simple concept. No matter what anyone tells you, the best way to build good
credit is to pay your card off every month, in full. If you're doing this, high interest rates won't matter, since you won't be paying interest
anyway.
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For Convenience
Having a credit card is much easier and safer than carrying large amounts of cash with you. If you plan to pay the balance in full every month, look
for a card with no annual fee and an interest-free period of at least 21 days, depending on the card. You might, however, opt to get a debit card attached
to your checking account. It won't allow you to build credit, but it won't allow you to build debt either.
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For The Freebies
Some cards allow you to build points with every purchase towards free merchandise or airline miles. Be aware that some of these cards have a large
annual fee and a high interest rate. You might be better off buying whatever freebie you're trying to earn.
**Content courtesy of Visa's What's My Score program.