Credit and Credit Cards

Yes, credit cards. Here are a few basic things about credit and credit cards that you should know. Of course, always ALWAYS read the fine print they give you!

• Each time you apply for a credit card, check your credit score-or someone else checks your credit, your credit number slowly declines. Be absolutely sure that you want a credit card. And never use a web site saying they'll check your score for free.
  
  
• You don't have to spend your credit limit! The best way to use a credit card is as though it's a debit card. Only use it if you have the money to pay it off.
  
  
• To go along with my second point, you do not have to pay interest either. As long as your balance is at $0 by the time your bill is due (that means you paid off what you owed) you have nothing to pay interest on! Imagine that!
  
  
• Picture this scenario: Best Buy is offering 6 months no interest with their in-store credit card. This is a good deal, only if you use it right! Let's say you bought a sweet TV for $1500. You are paying the minimum on your card with no interest for 6 months. The second you pass the 6 months...all that interest you did not pay-you now have to pay. So if you are taking advantage of a no interest for a time deal, pay it off within that time and you really have no interest.
  
  
• Remember, your credit card is not the only thing that builds credit. Things like student loans, medical bills, cell phone bills, etc. count with your credit.
  
  
• If you are looking for a credit card, and follow these basic rules, you should be in great shape. Find a credit card that gives you % back on purchases. For example, the American Express card gives you 3% back on gas, 2% on travel/dining, and 1% on everything else
  
  
• In the end, let your credit and interest work for YOU.