Finance Tip for this week- Understanding Credit Cards

Hello Divas, I know that we all have credit cards and know how to use them of course, but do we all know how to manage them? We found a great resource for understanding credit cards- it is an online brochure, aptly named,“Understanding Credit Cards” published by the American Financial Services Association Education Foundation (AFSAEF). The free brochure can be downloaded from the foundation's website, www.afsaef.org.

Here are some tips from the brochure for managing credit cards:

Do not charge more than you can afford to repay.

Pay your bill on time to avoid fees and a possible increase in your cards' interest rates.

Be aware that paying only the minimum each month may mean it takes you a long time to pay off your balance.

Maintain the best credit record possible so you will be offered the best rates.

Decide in advance how you will use your credit card - whether it's for emergencies only or for routine purchases.

Understand the terms, conditions and costs for a credit card before you select one for your use.

Know where your credit card is at all times; don't leave it lying around.

Make a central record of your credit cards and keep it in a safe place (other than your wallet).

Keep track of your credit card purchase receipts so you can check them against your monthly statement.

Destroy receipts and statements once you no longer need them.

Thanks Divas- remember to Shop Smart and Be Fabulous!