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10 Tips to Get Smart About Credit
Throughout the year banker volunteers from across the country visit classrooms and teach students how to use credit cards responsibly in support of the ABA Education Foundation's Get Smart About Credit program. For those who do not receive a classroom lesson, the Foundation offers the following tips to get smart about credit.
T— Talk to your credit card issuer if you have questions. The credit card business is
very competitive and wants to provide good customer service. If you are unsure about something, ask.
O— Order a copy of your free credit report annually. Your credit report evaluates your performance as a borrower and needs to be accurate. To obtain a free copy of your credit report from the Federal Trade Commission, visit www.annualcreditreport.com.
G— Go to your local bank or call your credit card issuer if you are having trouble making payments. Often they can work with you to establish a more manageable payment plan.
E— Evaluate varying credit card offers. Choose the card that offers the right features for you.
T— Take time to shred important documents, including medical records, financial records and credit card offers. Identity thieves can use the information on those documents to open new lines of credit in your name.
S— Save for emergencies. Experts recommend having three months salary in reserve, but as little as $500 will help pay for common emergencies. Use a realistic budget to help pay down your debts while saving.
M— Make sure that you pay your credit card balance in full each month. Avoid making only the minimum payment and do not pay late.
A— Access your account online to monitor and compare charges with receipts. Regular review of your accounts helps protect you from unauthorized charges or identity theft.
R— Read your credit card aggreement carefully. Understand what your finance charge and Annual Percentage Rate are and when your grace period expires. ABA's Consumer Guide to Credit Cards is a resource that helps cardholders understand credit card terms and specifics.
T— Think seriously, when it comes to your credit. Banks look at your credit history as an indication of your future financial behavior. The ABA Education Foundation's online resource Credit Dos and Don'ts addresses frequently asked questions and common misconceptions about credit.
For more information, contact Erin Scheithe.
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