Summary of Credit Cards
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Summary of Credit Cards
That little piece of plastic in your wallet can be a godsend when you don’t have cash and you find yourself needing to buy something. But be careful. Know how they work and what can happen if you don’t play by the rules.
Credit card use can be a part of a sound financial strategy rather than just a way to buy things today and worry about paying them off later. Credit cards are an effective way to build up your credit score. Using them regularly and paying off the balance fully each month shows the prospective lenders that you are a good credit risk. This will come in handy if you want to take out a mortgage, a car loan, or a business loan in the future. With this in mind, let’s look at some strategies you can adopt right now to make your credit excellent.
Practical Ideas I Can Start with Today
- Dispute any mistakes in my credit report, and add any missing positive information.
- Use my credit card every month. Make small purchases and pay them off to show I can handle credit responsibly.
- Get my credit report and ensure that my credit history is good. If it isn’t, work on making it good.
- Sign up for an automatic alert on my email or phone that will notify me when my credit card payment is coming due.
- Learn all the applicable fees on my credit card(s).
- Learn how long and how much it will take me to pay off my credit card balance if I pay only the minimum amount.
- Read my credit card statement each month. Look for any changes or unauthorized charges.
What you have learned
- How Credit Cards Work
- Types of Credit Cards
- Credit Card Interest Rates
- Types of Credit Card Annual Percentage Rates
- Credit Card Fees
- Protections for Credit Card Holders
- Unauthorized Credit Card Charges