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iQuestions Faculty, Ron Blue 
 
 
Question:  
 
What is the best kind of credit card to have? 
 
Answer:  
 
You know, when I was growing up, in the banking industry, if you 
didn’t repay your debts on time and fully, you were known as a 
deadbeat. It’s really fascinating that today in the financial services 
world, if you have a credit card and you pay it off on a monthly basis—
therefore not paying any interest—you’re known in the financial 
services world as a deadbeat. Why? You’re cheating the lender out of 
the interest that they were planning on earning. 
 
Now, what kind of credit card should you have? Well, one that has no 
annual fee and low interest rates.  You can circumvent all of that by 
making sure you pay off your credit cards in full every month, so that 
you never, ever have to even worry about what the interest rate is.  
 
The rewards they now offer on credit cards are gimmicks. There may 
be something that appeals to you, and that’s OK, but don’t ever fall 
into the trap of thinking you’re making a good decision by buying in 
order to get an airline mile, and then paying 18% interest on the 
amount of money that you borrowed to get that one mile. That just 
doesn’t make any sense whatsoever. 
 
So, the best kind of credit card to have is one with no annual fee and a 
low interest rate, but more important than that is the one where you 
pay off every month on time. 
 
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