YOUR MONEY From the Federal Reserve Board Tips On Managing Your Credit Cards (NAPSA)—Credit cards can be a useful tool, even when moneyis tight. However, you have to know how to take control of your credit cards and your finances so they don’t take control of you. Here are some tips on how to get the most from yourcredit cards. The tips—along with a credit card calculator—are from the experts at the Federal Reserve. Pay on time. Paying your credit card account on time can help you maintain a good credit record and avoid late fees. A good credit record leads to a higher credit score, which can help you qualify for lower interest rates. Howlongwill it take me to pay off my credit card balance if | make only the minimum payment? Mytotal balance: Myhighest annual % percentage rate (APR) (Pleasescroll down to see it will change yourbilling cycle to fit your cash flow and schedule. Stay below your credit limit. If you go over your credit limit, your card issuer could charge a fee and increase your interest rate to a higher penalty rate. To avoid this, keep a close eye on your account. 13.00 with a balance: your results) You have entered a balance of $3,000 at 13.00%. We estimatethat: Estimatedinitial minimum $60 payment 16 Years Amountof timeto payoff your balance, if you make no more charges and makeonlythe minimum payment on fime If your bill is due at an incon- venient time of the month, contact your credit card companyto see if 5 [3,000 $2,812 each month Interest charges you will pay in that amountof time @ If you can’t pay your balancein full each month, try to pay as much as you can. try to pay as much as you can. you. Not all cards are alike, par- Over time, you'll pay less in interest charges and can pay off your balance sooner. Watch for changes in the Some have a fixed interest rate, card companies can change the terms and conditions of your e Shop for a card that fits ticularly when it comes to the terms and benefits they offer. others a variable rate. Some will offer a longer grace period than others. Look for the card that’s the best fit for you. Avoid unnecessary fees. Credit card companies not only charge late-payment and over-thelimit fees, but also fees for cash advances and transferring bal- ances. Read your credit card agreement to learn about the fees that your credit card company charges. Pay more than the minimum payment. If you can’t pay your balance in full each month, terms of your account. Credit account. By reading these “change in terms” notices, you can decide whether you want to change the way you use the card. Use the credit card calcu- lator. To make it easier to manage your credit cards effectively, the Federal Reserve’s Web site has a credit card repaymentcalculator. It’s designed to help you calcu- late how long it will take you to pay off a credit card balance under different payment scenarios. To learn more, visit www.federalreserve.gov/creditcard calculator/.
