Credit Cards and Good Credit

 

A credit card is a card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made, and borrowing limits are pre-set according to the individual's credit rating.

Advantages

 

  • Use for emergencies
  • Buy now, pay later
  • Purchase protection
  • Helps establish good credit if used wisely

Disadvantages

     

  • Overuse
  • High interest/annual fees
  • Increase your debt
  • Establish poor credit if not used wisely

Stay in Control of Your Credit Card

 

  • Shop for the best credit card
  • Don’t charge anything you can’t pay for
  • Pay your monthly bill on time and in full

Be Careful

 

Do not miss a payment due date or unknowingly build up a larget amount of debt. These common mistakes leave you in BAD standing with your credit card company. Keep track of your expenses and bills, and watch out for warning signs of uncontrolled credit usage. What is uncontrolled credit usage? Uncontrolled credit usage can be paying off one credit card with another or only making the minimum payment on a card. If you are having trouble making your credit card payments, call your credit card company, they may be willing to work out a payment plan with you.
  

Need Help?

  • The Student Money Management Center offers UNT students free one-on-one financial coachings. Make an appointment with them to create your personal financial plan and budget.

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