Good credit can open doors to buying a home or a car, but credit can also come with some risks if you do not understand the specific terms and conditions or abuse your power to make purchases with credit.
Before you obtain a credit card it is extremely important to weigh the benefits and the risks to make sure it is in your best interest to do so.
Benefits vs. Risks
| Helps in emergencies | High fees |
| Convenient | High interest rates |
| Easy for internet purchases | Short or no grace period |
| Required for car rental | Leads to impulse purchases |
| Safer than carrying cash | Can lead to bad credit if not used properly |
| Possible travel & cash back rewards | Confusing credit terms |
CREDIT REPORT WEBSITES
All US residents may receive one credit report from each bureau annually. Contact the three credit bureau reporting agencies below to request your copy.
Equifax | www.equifax.com |
Experian | www.experian.com |
TransUnion | www.transunion.com |
- annualcreditreport.com is free
- freecreditreport.com is not free -- it is a subscription site from one of the credit bureaus that will try to sell you reports from the other two
- www.MyFICO.com - see a pie chart of what goes into your credit score
- www.bankrate.com - see what credit cards offer the best rate
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