Helpful Credit Tips…and a Few Habits You Should “Decline” – Part 1

Most credit card users understand at least the basics of credit card responsibility: repay what you charge and expect to pay interest if you spread your payments over time. But there is so much more we can easily do to make our credit cards work much harder for us: 

·        DO shop around. If you get a solicitation in the mail, on campus, on the Internet, or at the local bank, verify the quality of the company making the offer, and then compare rates and fees. The credit card industry is very competitive… interest rates, credit limits, grace periods, annual fees, and terms and conditions vary significantly.

·        DO use the same name and format each time you apply for credit. Don't leave out middle initials or "Jr."

·        DO read the fine print on the credit application. The application is a contract…read it thoroughly before signing. Watch for terms such as "introductory rate" or other names for low-rate periods that expire.

·        DO ask questions. You are the customer and the bank is competing to provide a service. If you don't understand something, ask.

·        DO set a budget and stick to it. Developing a realistic financial plan will help you keep your finances in order.

·        DO be wary of anyone who claims they can "fix" your credit. The only thing that can fix a credit report is time, and a positive payment history.

·        DO open your bill and pay it on time every month. This helps protect you from negative credit information, identity theft, and unauthorized charges.

·        Do pay at least the minimum due. Paying more than the minimum due is smarter and much, much cheaper.

·        DO contact your credit card issuer if you have trouble making payments. This issuer may work with you to create a payment plan you can manage.

·        DO be careful with your credit card. Keep it secure. Always have your bank's phone number available in case your card is lost or stolen.

·        DO view credit as an investment in your future. By using credit wisely, you build a good credit history. This allows you to rent an apartment, get a job, purchase a car, and buy a home.

·        DO order a copy of your credit report annually. Your credit report is a lot like a report card—it “grades” your performance as a credit customer. It needs to be accurate so you can be properly considered when you apply for credit.

·        DO close out credit accounts you don't use. 

There are also some credit practices that never work in your favor. See our list of credit “Don’ts”.