Know Thy Credit Card

I recently shopped at store where the salesperson offered me 15% off my purchase if I opened a charge account with them. Since it was a large purchase I accepted the offer figuring I could save a few dollars.

The bill arrived mid-month after I had paid all my bills and the due date was the first of the month, before I normally pay bills. The bill got lost among piles of paper. I ended up with a $50 late payment fee and interest charged on my purchase!

I promptly called the company, explained that I was a new customer and requested they change my billing date. They also, as a courtesy to a new customer, removed the late fee. The bill now comes at the end of the month with payment due mid-month along with all my other bills.

Credit cards provide great convenience and must be used wisely.
Here are a few credit card tips:

- Establish the same due date - call each company to adjust your billing cycle. This helps keep you current even if you pay all bills online.

- Keep fewer cards - too many cards may have a negative impact on your credit card score.

- Know your Debt to Credit ratio - if you have several cards and your debt balance is low that will influence your score positively. Low balance is key!

- Be aware of Length of Credit History - when you pay off your debt do not rush to close the account. The length of credit history is a positive towards your credit score. It could earn you lower interest on loans.

- Add up the interest - take each credit card bill for the past six months and add up all the late fees and interest you have paid. That can be a shocker!! What could you have done with all that money?

- Read the fine print - when the credit card company mails Terms and Conditions it's telling you something has changed. Make note of new late fees, interest rate, due dates, penalties, etc.; it could save you lots of money.

Be $ Smart - keep more money in your pocket by staying up to date on the terms of your credit cards.

www.bettermoneyhabits.com

Have you heard about Khan Academy? It's a not-for-profit with the goal of changing education. It offers a wonderful, easy way to learn by providing a free, world-class education for anyone anywhere. It covers math, science, finance and history.

They have recently partnered with Bank of America and created a website offering videos that teach about money management: www.bettermoneyhabits.com

You may learn how to compute compound interest, to manage credit and to buy or rent a house. You do not have to be a BoA customer as the site stands alone.

We are so fortunate to live with and use technology. If we don't know something, there are so many ways we may learn using the internet. Check out the site and see what new ideas they offer. My favorite section is on understanding credit. It really opens your eyes to the cost of borrowing and building your credit score.

Be $ smart; keep learning how to better manage your money.