Smart Decisions, Be Credit Smart

What Is Credit?

Credit is having the ability to buy a product or service, by making future monthly payments on that product. The catch to buying products with credit is interest. Depending on your creditworthiness your interest may be high, or low.Personal loans are used to buy houses, cars, and school. Buying less expensive products requires a credit card.

Credit Cards Can Be Dangerous

Credit cards are plastic cards that are issued by banks and businesses that enable you to buy products that you can not currently buy. You can use credit cards anywhere you want, but you should choose wisely. Credit cards can be easily abused, much caution should be taken. You should be able to afford every payment, to avoid over the limit and penalty fees. If all your payments are made on time your APR will improve. You should also consult your credit card provider about your credit limit, to protect you from spending to much money. Be sure to prepare for other fees such as your annual fee.

How To Stay Protected

Credit card ownership is a huge responsibility, and if you let your guard sown it will beat you to the ground, or put you in debt. You may want to keep your card in a safe place, because anybody can steal your identity, and cause much mischief. You may want to constantly check your balance to see if any unknown purchases have been made.

Budgeting is a good idea. Limit your spending to avoid piling debt, and make your payments on time. Falling behind on payments will make things worse, along with the additional fee.

The next time you buy yourself something with your credit card ask yourself if you really need it? Or if it can wait till you have the money saved up.