If you like saving money, credit cards with rewards are definitely worth it, especially since many don’t charge annual fees. Even the average rewards credit card will give back about 1% of everything you buy. That’s $10 for every $1,000 spent, and it adds up over time. Plus, the best credit cards with rewards are even more valuable, offering far higher earning rates on purchases and, in many cases, initial bonuses worth hundreds of dollars. So using the right credit card to earn rewards on purchases you’d be making anyway is clearly better than getting nothing when you pay in cash. Credit cards with rewards aren’t for everybody, though. For starters, you should only use them for purchases that you’ll pay in full by the due date. If you carry a balance from month to month, interest will quickly eat away at your rewards earnings. The best approach is to use a 0% credit card for purchases that will take longer than a month to pay off and a rewards card for everyday spending. Rewards shouldn’t be your top priority if you have limited or damaged credit, either. Finding a credit card with low (or no) fees that will approve you is far more important. This will help you begin building credit as soon as possible and save money. And the rewards you’re likely to be offered at this point probably won’t be worth paying extra for.
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