There are two components to responsible credit card use: spending wisely, and paying wisely. Doing both is important because these habits will affect your ability to be approved for other forms of credit later in life, including loans for buying a house or a car.
Credit Basics – What it is, why it’s so important
As a college student, you have probably received offers for credit cards. If you have graduated, the number of credit card offers has probably continued, if not increased. Exactly what is credit and why is it important? In this section you will find out the answers to these questions:
What exactly is credit?
What are the benefits of credit?
What is the difference between a credit and a debit card?
What is good credit?
How is credit established?
How can good credit be maintained?
You are entitled to one free credit report from each of the three credit reporting agencies each year. You can do this by visiting www.annualcreditreport.com. This is the only authorized free credit report service. All others are impostors. Although you can request all three reports at the same time, you can monitor your credit more frequently by spacing the reports throughout the year. Additionally, if you are turned down for credit, insurance, or employment, you are eligible for an additional free report from the agency they consulted. To request this report, contact the appropriate agency within 60 days. Continue reading “Credit Report Basics”
College and post-college years can be lean times for your bank account. If you’re monitoring your account balance and trying to live within your means, it should be easy to avoid overdrafts, right? Not necessarily. Your bank’s policies and your personal account settings play a big role in whether your transaction will be approved or declined, and whether you incur a dreaded overdraft fee.