Credit

Amanda Fergeson, 4/4/14, Pp. of Business, Mgmt. & Finance

How it Helps...

You can get cash back.

  • Signing up with the right company can earn you anywhere from 1-5% back on your purchases.

It provides a certain amount of safety.

  • Paying with a credit card makes it easier to avoid losses from fraud. When your credit card is used fraudulently, you aren't out any money - you just notify the company of the fraud and aren't responsible for the transactions you didn't make while the credit card company resolves the matter.

It is universally accepted.

  • When travelling or making certain types of transactions (such as renting cars or rooms), debit cards or cash are not always accepted. Credit cards make it easier for the owner of the business to account for any damages caused to their property as well as ensure the legitimacy of the currency.

How it Hurts...

Irresponsible use can cause higher annual fees.

  • This happens when you can't pay your credit card balance in full and on time.

Irresponsible use can also cause debt.

  • This happens when you spend more than you can afford.

The effects of irresponsible use of a credit card can lead to a low credit score.

  • This can happen because of several things, including not paying your creditors on time, owning several credit cards, and "maxing out" (exceeding the limit) of one or more of your credit cards.

"Remember that credit is money." ~Benjamin Franklin

Credit Bureaus & Contact Info.

Equifax

  • 1-800-685-1111
  • Fraud Hotline: 1-888-766-0008

Experian

  • 1-888-397-3742

TransUnion

  • 1-800-916-8800
  • Fraud Hotline: 1-800-680-7289

What I Learned

Using credit can easily lead to debt and, once in debt, it is very difficult to get out of it.