Educational Resources - Borrowing Basics
Types of Credit
Cost of Credit
Applying For Credit
Manage Your Credit
Managing Your Credit
Once You Get Credit
- If possible, pay off your entire bill each month. If you can't, try to pay more
than the minimum balance due. This will reduce interest charges and total interest
- Pay on time to avoid late fees and to protect your credit. If you cannot pay on
time, call your creditor immediately to explain the situation. They may waive late
fees or be willing to make different payment arrangements.
- Always check your monthly statement to verify transactions. Call or write to your
creditor right away if you suspect errors in your statement.
- Ignore offers creditors may send you to "reduce" or "skip" payments. You may still
be charged interest charges during this period.
- Think about the cost difference if you purchased your item with cash versus if you
purchase your item with credit.
- Remember, if you purchase a $500 stereo with a credit card with a 20% annual percentage
rate, it will cost $1,084 and take 9 years to pay off if you only pay $10 monthly