Introduction: Why have a credit card?
A credit card is a powerful financial tool with diverse advantages, especially for building your credit history. At the same time though, it should be managed very carefully, because it may cause you to spend more money than your budget allows. To become financially secure it is necessary to learn how to manage your credit cards wisely.
Adult learners may have credit cards in their names, and they need to update their relevant information to prevent acquiring fraudulent debts and to possibly repair their credit histories. In the case of students, who may be less likely to have credit cards in their names, can either be an authorized user (no legal responsibility of paying the bill) or a joint owner (more responsibility, able to start building up credit history). Regardless, students need to fully understand the process and the seriousness of selecting the best card for their present and future needs.
Throughout this module on credit cards, you will learn about:
- The pros and cons of credit cards
- How to select the right credit card for you
- How to read a credit card billing statement
- How to manage your debt
You will also learn to identify the relationships between credit cards, credit history, credit report, and credit score (FICO).
For successful management of credit cards, you can follow five steps listed below. Let's get started!
Chapter 1. Advantages and disadvantages of credit cards
Chapter 2. How do I choose the right credit card for me?
Chapter 3. What's in a credit card monthly billing statement?
Chapter 4. What makes up the FICO Score?
Chapter 5. What's in a credit report?