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Personal Finance

Credit Cards

Credit cards are a convenient way to carry money without carrying cash.  Plus, having a credit card is a good way to establish credit history-- if you manage your debt and make timely monthly payments.  People get in trouble with credit cards when they overspend.  Their outstanding debt gets too large to pay off quickly, and interest quickly adds up.  A credit card isn't extra money, it's an extra loan. 

Use your credit cards wisely.  Don't charge more than you can afford.  Pay the balance each month.  If you must carry a balance, be sure to make more than the minimum payment to pay it off quicker, and with fewer financing charges.  Make your payments in a timely manner.  Always review your bill to look for erroneous charges, and to learn your spending habits.

Credit Reports

A credit report is a record of your credit history.  Your credit history includes whether you have paid your bills on time, as well as your monthly credit card and loan payments.  Your credit report also shows who has inquired about your report. 

Employers, landlords, banks, major stores, courts and credit card companies can all access your credit report.  That's why maintaining good credit is important-- it affects all areas of your life. 

Fraud Prevention

Credit cards and ATM cards are ways to access your money.  Keeping these safe and secure are important.  Don't give your account numbers to anyone-- especially over the phone or on unsecured web sites.  Save your receipts and compare them to your monthly statements.  Choose your PINs wisely-- don't make it easy for others to guess them.  If you think your information has been compromised, contact your bank as soon as possible.  Contacting financial institutions early may help you to limit your losses.