Managing Your Debt
Steps to Financial Fitness

10 Steps to Financial Fitness | Establish a Budget | Credit Card Tips | Clean up Your Credit

Credit Card Tips

• Shop around for the best credit card to fit your needs. Look for:
  • Low annual interest rate (APR)
  • No annual fees
  • A grace period for late payments
  • A good credit limit (how much you can spend)
  • Extra services like frequent flyer miles or cash rebates
     
• Pay off the month's total spending with each billing cycle - use the card only when necessary, not as a way to accumulate additional debt. Otherwise, next month you'll be paying interest charges on this month's accumulated interest, as well as current expenses.
   
• Don’t spend more than you can afford to pay on a monthly basis. Credit cards can seem like free money. Limit your spending so that you can always make your payments.
   
• Be wary of “special offers.” The low rates offered may only last for a couple of months.
• Compare the terms and conditions.
   
• Keep all copies of your credit bills.
   
• Limit the number of cards you get in order to track your spending.
   
• Call your lenders if you need to work out a different repayment plan.

Helpful Links

Choosing and Using Credit Cards
www.ftc.gov/bcp/conline/pubs/credit/choose.htm

6 Smart Ways to Use Credit Cards
www.ivillage.com/money/life_stage/startingout/articles/0,10509,165365_36495-2,00.html

Free Credit Report
www.freecreditreport.com Credit Card Information
www.creditinfocenter.com/cards/