Adult Financial Literacy Guide | Page 17

Credit Cards Use this Checklist from GetSmarterAboutMoney.ca to choose a credit card, use it wisely, and keep it safe.       Shop around for the card that best suits all of your needs. Find out what interest rate you’ll pay on late payments. Limit the number of credit cards you apply for at the same time as this could affect your credit score. Read and understand card terms and conditions before you apply. Are there annual fees? How much time do you have to pay your balance FreeImages.com Content License Lotus head before you pay interest? Consider whether a rewards program will benefit you (cash back, travel, movies, etc.). Are the rewards worth the additional fees? If you receive multiple card offers, accept only the one you want and shred all other offer information. When you are looking for a Credit Card: When you have your Credit Card:  Always pay your bill on time to avoid interest costs.  Avoid taking cash advances on your card, interest is usually charged immediately on these withdrawals.  Keep all of your credit card purchase receipts and compare these to your monthly bill to make sure there are no incorrect charges.  Track your spending throughout the month to make sure you don’t go over your limit and that you have the money to pay your bill when it’s due.  Keep your card number, pin and other card information private. Don’t save your card information on online retailer sites, especially if you share a computer.  Learn how to protect yourself from identity theft  Let your card company know when you are going on vacation – if your card company sees purchases outside of your area, they may disable your card. 17