Five things you need to know about credit cards

  1. Applying for a credit card (or any other type of credit for that matter) can lower your credit score (FICO score).

  2. Applying and getting turned down for a credit card can hurt your credit rating.

  3. Making the minimum payment each month and you will end up paying over three times for goods you purchased. Three times!

  4. DO NOT use your credit card to get cash advances. Your interest rate for this goes way up, sometimes as high as 24%!!! Read the fine print on your statement.

  5. If you exceed your credit limit there will be penalties and they are steep.

A terrific and sobering documentary was made pertaining to consumer debt. It is called Maxed Out.