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Studies have shown that people generally maintain a business relationship with
their first credit card for 15 years, which is why creditors want to get
customers when they are young. The relationship lasts so long because the young
consumer doesn't know how to find better deals.
Many people are suggesting that credit card companies are aggressively trying
to get students hooked on credit by luring them with T-shirts and other
freebies when they apply for cards. This guide is designed to give you the
facts you need to be a wise consumer and the tools to use credit to your
advantage.
A credit card is not an invitation to spend money you don't have. You must
beware of falling into a credit card trap.
Credit card issuers will also penalize you if you pay late or go over your
credit limit. Always pay on time, even if it is just the minimum. Late fees
have skyrocketed and it's not uncommon to find up to a $30 charge applied for a
payment that's only a day late and issuers may also jack up your interest rate
without notifying you. What started as an introductory rate of 6.9% can become
25%.
These days, credit extends beyond just the amount of money you owe. Many
employers and colleges may review your credit reports to judge your character.
A history of late payments, over-the-limit charges, or too much debt may not
paint a pretty picture. We hope that our Caution with Credit program will help
you avoid credit disasters and give you a better understanding of the credit
process.
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