CREDIT
Ten Helpful Hints
- Avoid applying for credit on the spur of the moment. Credit decisions should be thoughtful, not based on a free towel or a percentage off of a purchase.
- Do shop around. If you get a solicitation in the mail, on campus, on the Internet, or at the local bank, compare rates and fees. The credit card industry is very competitive so interest rates, credit limits, grace periods, annual fees, terms and conditions vary.
- Avoid applying for more credit cards if you already have balances on others.
- Do call your credit lender and have your credit limit decreased to a reasonable amount.
- Avoid paying only the minimum amount due each month. At best, pay the minimum amount plus the finance charges.
- Do make all credit card payments on time.
- Avoid charging anything you can wear or eat. If you’re paying just the minimum due, given interest rates and other finance charges, you’ll most likely end up paying for 1 meal at Applebee’s for 3 months
- Do read all of the terms and conditions.
- Avoid allowing credit card payments to account for more than 15% of your monthly income.
- Do view credit as an investment in your future. By using credit wisely, you can build a good credit history. This allows you to rent an apartment, get a job, purchase a car and buy a home.
