Credit cards are not bad if used responsibly. Credit cards may allow you to purchase products and services on-line, rent a vehicle, or respond to an emergency. Before you sign up for a credit card do your homework. Review the information in this section starting with the helpful tips below.
- Shop around for the card that fits your needs
- Don’t complete a credit card application for the freebies
- Read the fine print – understand the fees
- Introductory rates may be temporary
- Learn the terminology
- Pay off balance each month
- If you can’t pay the balance each month, pay more than the minimum payment
- Avoid late payments – you may be charged late fees and your interest rate may increase
- Only use credit cards for emergencies
- Avoid cash advances- interest rates may be higher
- Consider student loans rather than credit cards to pay for college. Student loans offer better interest rates and more payment options.
Tools and Tips for Managing Credit Cards