PRACTICAL MONEY GUIDE: Credit Card Basics

PRACTICAL MONEY GUIDE: Credit Card Basics ; What you need to know about managing your credit card.

The Convenience of Credit

Credit cards can be powerful financial tools for you 

and your family, and as with all financial products, they 

need to be used carefully. A credit card is a powerful 

payment option that allows you to purchase necessary 

items now and pay later. 

Advantages to Using a Credit Card:

• Being able to buy needed items immediately and earn 

rewards for purchases. 

• Credit cards can also offer more security than other 

options, as they protect from fraud and eliminate the 

need to carry large amounts of cash.

With These Advantages Come Responsibilities

Using a credit card is like taking out a loan. If you don't pay 

your card balance in full each month, you'll start paying 

interest on that loan.

• Credit cards have to be managed wisely in order for you 

to avoid paying interest and accruing debt. 

• Understand all terms and conditions.

• Stay on top of payments and realize the true cost of 

purchases made with credit.

• Maximize the benefits of credit while minimizing the 

risks to become a responsible credit card owner. 

Choose Wisely

The best way to maximize the benefits of credit cards

is to understand your financial lifestyle—what you

need, what you want and how much money you spend.

Begin your search for a credit card by determining

key factors like how often you’ll use it, whether you’ll

want to use it overseas and if the financial institution

that offers it has a branch near you. It’s important to

make sure you know the terms of the credit card in the

following areas:

• Annual Percentage Rates (APRs) and whether rates are

fixed or variable

• Annual, late and overdraft-limit fees

• Credit limit on account

• Grace periods before interest begins accruing

• Rewards including airline miles or cash back

Many banks offer lucrative travel rewards

deals if you are willing to pay the annual

credit card fees.