The top three considerations when choosing a card are annual fees, interest rates and rewards, said Robin Taub, a chartered professional accountant in Toronto
Everyone starts building their credit score somewhere – and for many, it’s getting that first credit card during college or university.These products are “sticky,” said Robin Taub , a chartered professional accountant in Toronto , and author of “The Wisest Investment: Teaching Your Kids to Be Responsible, Independent and Money-Smart for Life.”
Most credit cards carry interest rates of around 20 per cent, with cash advances higher, although there may be promotional rates offered at sign-up. In this stage of their financial life, however, Taub said students shouldn’t tangle with interest at all. “I see so many students – even when I was a student, my own friends – get into $20,000, $30,000, and $40,000 of credit card debt during school years because they don’t realize that, `Oh, it’s not free money,”' she said.
“The purpose of a credit card is not so we can spend freely, it’s because we live in a credit system,” she added. “It’s just important to establish credit and keep it healthy.” “I tend to recommend a no-fee card, and just a very simple, percentage cash back,” Lam said. “Whether it’s for groceries or overall spending – just keep it simple that way, and to stick with one credit card in the beginning.”
Credit Lam Balance History Student Interest Taub Toronto Thuy Lam Robin Taub
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