Learn to be Credit Card Savvy Before You Sign On

When teens are in their Senior year of high school, along with all the college info coming their way, companies are handing out credit card applications.  Whoa……learn the rules first.

• Know that when you sign the dotted line, you are held legally responsible for the debt.
• Know that along with carrying the card in your pocket, there are large fees if you don’t pay up in full and do so on time.
• Know that there is something called a Credit Score, which will follow you, and if it’s not in the good to excellent range, you can be turned down for a loan (college and car), job, home.
• Know that when your name is on the card, the bill for any purchases made belongs to you.
• Know that it’s wise to keep your sales slips, and match them to the charges on the bill when you receive it.  Scrutinize it.  Any discrepancies, call Customer Service on the back of your card.
• Know that you don’t let anyone else, not even your BFF, use it.
• Know that if you don’t think you can handle the above, don’t fill out the application.

However, if you’re sure you are mature and responsible enough to handle it, then okay.  A suggestion would be to get no more than a $500. limit.  Remember, don’t purchase what you can’t pay for in full, when the bill comes due.  Pay in full, and make sure it’s received by the company before the due date.  Otherwise, you will have interest fees tacked on to the unpaid balance, as well as a hefty late fee.  Even if it arrives in their afternoon mail, some companies post payment the next day.  Late is late.  Then next month you’ll be paying the interest and late fees….a total waste of money…. as well as purchases made.  Doing this gets you into a financial hole.  It will be tough to dig out.  Along with that your Credit Score takes hits.

Learn early.  Buy only what you know you can pay for when the bill comes in.