Charge Wisely: Keeping Your Credit Cards in Check
By Bill Frischling
WashingtonPost.com Staff
June 27, 1996
Do you use or abuse your credit cards? Do you have more than one or two? Do you reach for them more often than you do the cash in your wallet?
Now the important questions: What do you really know about credit? Have you ever read the fine print? Do you know how long one late credit card payment can follow you?
Credit card debt has reached astonishing levels since plastic first was introduced in the 1950s. The American Bankers Association reported in March that credit card and other installment debt for 1995 totaled $1.035 trillion in the United States alone. That's $3,900 for every person in the country or one-fifth of the total national debt of the U.S. government.
Before getting another credit card, you should get an education about credit. Learn about different types of credit, the pros and cons of using credit cards,
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U.S. credit card and installment debt totaled $1.035 trillion in 1995. That's $3,900 for every person in the United States
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how to manage and eliminate your debt and how different rates -- and the fine print -- can drastically affect your debt levels.
You should also analyze your current debt load. Is $5,000 too much to carry for a person who earns $25,000 per year? Run your numbers through a debt check-up calculator and find out where you stand.
Remember that your debt history follows you. There isn't much that credit bureaus don't know about your past. TRW, one of the largest credit reporting bureaus in the world, answers some common questions about what they know and don't know about you and tell you how to check your credit history.
Credit cards are somewhat like cars in that there are a million deals for the same product. Thousands of companies offer MasterCard and Visa, but all at different rates. Comparison shopping is important. Compare different credit card interest rates and find the one that will be the best for you at the lowest cost.
- Links in this story
(in order of appearance)
- · Understanding Money and Credit, from Household Finance Corp. A guide to different types of credit, managing debt and improving your credit rating. Nicely written with no sales pitch.
- · Debt Check-up Calculator, from Sooper Credit Union. Enter your financial data and find out how heavy your debt load really is.
- · Common Credit Questions, from TRW, is an FAQ (Frequently Asked Questions) about what is in a credit report, how to obtain one, and how to fix your credit. The FAQ is halfway down the page.
- · Credit Card Rates, from Banxquote, lists hundreds of credit card companies, grouped by region, and their fees, fixed rates and variable rates. Contact information and mini-corporation snapshots are available.
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