Credit Cards Lect #1

Credit Cards

• Issued by the bank, paid within 30–60 days, otherwise intested is paid

• Good option if you use money wisely

• If you pay bill regularly, your credit scores goes up.

• Some credit cards have rewards and perks.

• An Example of a Credit Card Bill

  

Wise Spending

• Minimum payments don’t help get rid of credit card debt.

  • Minimum payments are around 2-3% of total payment

  • Interest almost cancels out the minimum payment.

• Checking your Credit Score does not damage it

• Income does not impact Credit score

• A Good Credit score does not mean you're rich

• A Perfect Credit Score does not really matter.

• You should start to build your credit score as soon as possible

• Paying off debt increases your credit score

• Your Employer cannot see your credit score.

• Student Loans affect your credit score

• Using Debit cards will not give you more credit score

• Closing a credit cards hurts your credit score

• Being with a spouse does not mean you merge credit scores.

• Multiple Credit scores are possible.

Perks for Credit Cards

• Cashback → Cheaper maintenance cost, but not many rewards.

• Points & miles → Expensive cost to maintain, but lots of benefits.