Credit Matters
Financial Aid Calculators
Managing Finances
Creating a Budget
Identity Theft
Money Matters For College Students
You already know how to use your credit card for purchases. And you may think that’s all you need to know. Actually, you’ll Find it interesting — and helpful — to understand some basics behind credit cards.
Your Guide to Using Credit Wisely
A credit card is an important financial tool. It’s a convenient way to carry money without carrying cash, and a good way to pay for larger purchases over time. It also provides financial support in an emergency and lets you build a credit history.
Like any tool, credit cards work better when you know how they work. That’s why you need this guide to using credit wisely. You’ll be able to take charge and stay in control of your finances.
Using a credit card is like getting a loan. Every time you charge something, you borrow the money until you pay it off later that month or over time. In exchange for this “loan,” the credit card company adds interest charges to your account, which you must pay along with the purchase amounts.
By using your credit card wisely and always paying your bills on time, you’re building a good credit history. This can help lay the foundation for your future success.
A credit report is based on your credit history — that is, whether or not you have paid your bills on time. This information, gathered from banks and other creditors, includes monthly credit card and loan payment information. It may also include monthly rent or utility payments.
What is a Credit Bureau?
Credit bureaus collect and sell information about how people repay their debts. They release this information in the form of a credit report to credit card companies, auto financing companies, college loan officers and insurance companies for use by these companies in reviewing loan and insurance
applications. Prospective employers and landlords also have access to this information.
As you can see, it’s very important to maintain a solid credit history. A poor credit
history can make it difficult to get additional credit in the future. To obtain free information about your credit report visit www.annualcreditreport.com.
Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.
The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft.
Identity theft is serious. People whose identities have been stolen can spend hundreds of dollars and many days cleaning up the mess thieves have made of their good name and credit record.
The potential for damage, loss, and stress is considerable. Consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing, or cars because of negative information on their credit reports. They may even be arrested for crimes they did not commit. Learn about protecting yourself from identity theft at http://www.ftc.gov/bcp/edu/microsites/idtheft/index.html.
275 Eastland Rd.