I came across the following article this morning and thought it would be good to share. I have a lot of friends and clients who really do not understand "credit" and how little things they think are helping their credit score, are actually hurting it. It is important that when you take out a line of credit that you understand all of the responsibilities that come with it. You need to know things such as: interest rate (the offer rate and lifetime rate), how the interest rate works, the annual fee and all other fees involved on the account,when your payment will be due, what the difference is between paying the minimum fee due and the account balance or another amount, what happens if you can't pay on time or the minimum amount due, what happens if you go over your credit limit, what happens if you lose your job and can't pay it at all, etc. Credit cards are the worst kind of credit to have. Be extremely careful when taking out a line of credit with a credit card company. There are several different types of credit lines you can have. Some lines of credit qualify to allow you to deduct the interest paid on the account every year from your taxes. Credit card interest is not one of them. Beware....credit can cause extreme financial problems and stress. Credit can be deadly. Always research, be knowledgeable, ask questions and use credit wisely. Credit is a big responsibility and you need to be sure that you can make it work for you.
http://money.msn.com/credit-rating/5-ways-young-adults-ruin-their-credit-cardratings.aspx
Remember, taking care of yourself and your loved ones is most important in life. I care about you and your future! ~ Katie
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