Use them carefully.
Credit cards offer great benefits, especially the ability to buy now
and pay later. But you’ve got to keep the debt levels manageable and
pay on time. If you don’t, the costs in terms of fees and interest,
or the damage to your credit score, could be significant.
Among the most important things to know and do:
1. Understand your
card’s terms, especially when interest will be charged and at what interest
rate. Be aware of the circumstances that would allow your card issuer
to increase your interest rate.
2. Pay as much as
you can to avoid or minimize interest charges. If possible, pay your
bill in full each month. Remember, paying only the minimum due each
month means you’ll be paying a lot of interest for many years with little
reduction in the amount you owe. Those interest costs could far exceed
the amount of your original purchase.
>>
next
page
|