Credit Cards - Be Aware
- Applying for a credit card (or any other type of credit for that matter) can lower your credit rating (FICO score).
- Applying and getting turned down for a credit card will hurt your credit rating.
- Making the minimum payment each month and you will end up paying 3+ times for goods you purchased. Ask yourself, would you pay $450.00 for an iPod? $30.00 for a CD?.
- 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.
- 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.