As you face the mounting pressure of the winter
holiday
gift-buying season, STOP and take time to protect yourself from credit
card tricks and traps. To help, AFFIL is sharing these tips to
consider before you break out the plastic. Adapted from "
Credit Card Tips for College Students,”
Consumers Union © 1998-2007.
1. Don’t get tricked, trapped or suckered into a card with bad terms.
If you want a credit card, get one with a long-term low interest rate
(APR). If you get a low introductory rate, chances are it’ll start at
0% and then jump to 20% with one almost-on-time-but-didn’t
-quite-make-it payment. Still want a credit card? Just know what you’re in for…
2. Once you choose a card, don’t let your guard down.
Credit card companies are notorious for changing rules and playing
GOTCHA. Look through those mailings they send…they may include a nasty
change in terms.
3. Pay your bill on time. Better yet, pay it
several days ahead of time. If the due date is on a Sunday and your
payment (duh) arrives on Monday – you’re late! Don’t laugh, this is
REALLY common. And when you’re late – see (1) above, your interest rate
jacks up.
4. Pay your bill in full. Whenever possible. And as quickly as you can.
5. Do not go over your credit limit. And set the
credit limit as low as possible. Don’t be fooled – credit card
companies LOVE to give you a credit limit you can’t afford.
6. Stay as far away from a credit card ‘cash advance’ as you can.
The interest rate on cash advances is MUCH higher and credit card
companies apply any payment you make to whatever else you owe first.
That cash advance hangs around unpaid and with increasing interest
until you DO pay your bill in full. Did we already mention that
they’re looking to get you?
7. Ignore those in-store “15% off today if you sign up for our credit card” offers. You’ll pay back what you saved and then some REAL fast.
8. Carry only one card. Less confusion. How many companies do you want abusing you at once?
10. Remember your other option: CASH.
Still not convinced? Watch a funny video and see how the credit card companies are laughing:
