Word of the Week:
Credit Cards

Definition: A credit card lets you buy now and pay later. When you spend on a credit card you are borrowing from the issuer and your card balance is the total amount you currently owe.

Key Takeaway: When you spend with a credit card, you are taking out a loan.

Challenge: Before applying for a credit card ask yourself:

..what types of rewards interest you?

..does it have an annual fee? is it worth the fee?

..do I have a big purchase coming up to take advantage of the sign up incentive?

Find out:

..when your minimum payment it due.

..what the penalty is for late fees (and other penalties).

Fun Fact: There are almost 400 million open credit cards in the U.S. - a little more than one for every person.