One of the age old questions for many young Canadians is how do you select the best credit card to help build a credit score.  Credit card providers advertise a whole collection of their products, which include credit cards with zero fees, low interest rates, or even reward points.

While they are similar in nature, each type of credit card carries its own costs that could either help or hinder your accumulation of credit.

The most important questions to ask yourself before selecting a credit card is what your individual needs are, and what type of credit card is best suited to support those needs?

Depending on your financial situation, the costs or benefits of one type of credit card are likely better suited to fulfill your needs then others.  For example, if you have a small or non-existent savings account, a credit card with high interest penalties for missed payments will do more harm than good.

In this situation, a low interest credit card is a better fit.  A low interest credit card is an affordable way to pay for every day expenses, while at the same time helping you to build your credit score.  Low credit card interest rates mean the financial penalty for missing a monthly payment is miniscule in comparison to other credit cards.

However, if you have gone through a personal bankruptcy or have a tumultuous credit history, a guaranteed credit card might be your best option.  Guaranteed credit cards are made for people who experienced a difficult financial history, and need a second chance to rebuild credit.

Unfortunately, the road back to a good credit score is a long road to travel, which is made all the more evident in that guaranteed credit cards are somewhat limited compared to their counterparts.

On the other hand, if you have relatively strong credit and are less concerned about high interest payments, a rewards credit card can help you reap the benefits of sound financial footing.

Rewards cards provide you with points, cash back, or other types of benefits depending on the conditions attached to the credit card, and how much money you spend each month.  Some rewards cards even offer discounts on hotels or flights, which can help you save money to enjoy a relaxing vacation.

A credit card should fit your lifestyle, and strike the right balance between high perks and low interest rates.

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