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Credit Cards: How to Choose One and Use it Wisely

Balance calculation method.

If you are going to maintain a balance, you should consider how the finance fee is calculated. The most common method is the average daily balance, in simple terms, this means that the daily cash balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that calculate balances using two billing cycles; it will ultimately cost you more. There are many cards that do not use this method.


Many card issuers offer reward programs to their customers to encourage them to use the card. Given that you will still make purchases – and the card issuer will not charge an additional fee for the reward program, this can be a good advantage for them.

Look for a program that offers incentives, such as cash or travel, and rewards that you will actually use and that are easy to earn and pay off.

Also, pay attention to whether the rewards have expired and whether there are restrictions on how many points you can earn.

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