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Frequently Asked Questions On Credit
Here are answers to some questions about managing your credit.
What is credit? A:
You could consider credit as a tool you can use to build your credit
history. You could also use it as a way to stretch your finances each
month. Credit is your reputation when it comes to money and
responsibility. It's what lenders and employers look at to make sure
you're reliable when you want to rent an apartment, get a job, or buy a
car.
A:
First, stay within the set credit limit on your card and keep track of
how much credit you have left (i.e., your available credit). Second,
always pay at least the minimum amount due on time. Paying late will
result in late payment fees and negative reporting to credit bureaus.
A: As
soon as you get your statement, check the due date and minimum payment
due. Make sure you pay at least the minimum payment each month and mail
your payment at least seven to ten days before it's due, to allow for
mail time.
A:
You can monitor your balance each month to make sure you have enough
available credit for purchases. Check your most up-to-date balance or if
available view your current statement online.
A:
Remember that your credit card is a tool that allows you to buy what you
want, when you want it. But it's not free money and every dollar you
charge will eventually have to be paid back. Also, budget your spending
so you're only charging what you can pay off at the end of each month.
A:
Your financial reputation could be damaged for 7 to 10 years.
Mismanaging your credit signals a lack of financial responsibility to
any company that might lend you money or hire you for a job. What's
more, it's tough to repair bad credit and it takes years of work and
financial control.
A: Be
honest. If you think you're going to miss a payment, take the initiative
and call the creditor immediately. It's important to remember that if
anything happens, it reflects negatively on you, not your creditors.
A:
You can request a copy of your credit report by writing to any one of
the three major credit bureaus. Include your name, Social Security
number, date of birth, daytime phone numbers, your addresses for the
past five years, and photocopies of two forms of identification. There
is usually a fee required.
A:
Variable-rate cards have APRs based on financial indexes such as the
Prime Rate or London Interbank Offered Rate (LIBOR). When the index
decreases, so does the interest rate on your card. Your annual
percentage rate (APR) is a combination of the index and a previously
disclosed number of percentage points. A fixed APR doesn't vary based on
index rate fluctuations.
Credit Resources Equifax: |
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All information on this site is deemed reliable but not guaranteed and should be independently verified |