Tips | January 6, 2010

Five tips for credit cards

The United States central bank – the Federal Reserve – has five top tips for getting the most from a credit card.

The tips are:

1. Pay on time

2. Stay below your credit limit

3. Avoid unnecessary fees

4. Pay more than the minimum payment

5. Watch for changes in the term of your account

It also included a link to a credit card repayment calculator, which determines how long it would take to pay off your credit card if only the minimum monthly payment is made. It showed that a $2000 debt on a credit card with an annual interest rate of 20% would take whopping 26 years to pay off using only the minimum monthly payment.
Although directed at people in the US, the tips and calculations can be readily transferred to people in other countries.

eZonomics team
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