Story Detail
Credit Cards- The good, the bad, and the ugly
We where a guest speaker at a high school to 50 students taking a finance class.
THE GOOD:
* Convenience
* Builds credit history
* Security in emergencies
* Safety-no need to carry cash
* Enhanced responsibility
* Budgeting tool
THE BAD:
* Annual fees
* Interst rate-fixed or variable
* Introductory offers
* Late payment fees
* Conditions
* late payments affect your credit score
THE UGLY:
* Fixed rates are not always fixed
* Too many credit cards, affect your credit score
* Special offers can be misleading
* Paying the minimum balance only increases the cost of orignal pirchase
CREDIT CARD SECURITY:
* Treat credit cards like cash
* Report lost/stolen/missing cards immediately
* Sign your card upon receipt
* Keep card and PIN in a safe place
ARE YOU READY:
* Do you need a credit card?
* Can you afford a credit card?
* Can you pay off balance each month?
* Why should you get a credit card?
* Shop for low interest rates
* Check for grace periods
* Rewards