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Credit cards can be an easy way to buy things and are lifesavers in an emergency…
but they can also ruin your credit and cause years of money trouble if you don’t use them right.
Check out the basics of handling a credit card and see how something so good can become evil in the wrong hands.
Oh yeah, don’t forget you get a free gift when you read this helpful info and pass the little quizlet at the end!
ALWAYS READ THE FINE PRINT (YES, EVEN THOUGH IT'S BORING)
Not all credit cards are the same. Each company sets its own rules, rates and fees and some can be tricky. They may offer a low interest rate,
but the first time you forget to make your payment on time, you’re slapped with a $35 late fee or they double your interest rate. Ouch!
Or they may charge a fee each year just to let you use their credit card…some annual fees can be as high as $90!
SHOULD YOU TRUST ANY CREDIT CARD OFFERS?
Of course! We created the Plugged In card for our younger members to help you establish good credit, buy things conveniently and
give you access to money in an emergency - without ripping you off.
THE “PLUGGED IN” VISA HAS A LOW RATE AND NO ANNUAL FEE
If you do decide to make payments rather than paying the entire amount due, the “Plugged In” Visa interest rate is only 9.90% APR.
(That’s the same rate established adults with great credit and a long history of making their payments on time get.)
Plus, there’s no yearly charge to have a credit card from Linn Area Credit Union.
USING YOUR CARD CAN HELP YOU BUILD A GOOD CREDIT RATING
If you charge purchases on your new credit card and pay the entire amount you charged by the date the bill is due, you won’t have any interest
charges. Believe it or not, using your credit card helps build good credit. It shows you know how to handle your money and you’re not charging
things you can’t afford to pay for.
ALL CREDIT CARDS HAVE A CREDIT LIMIT
The credit limit is the maximum amount of money you can charge on your Visa card. You’ll get a letter before you get your card telling you what your
credit limit is. Don’t charge more than this amount or you’ll have to pay a penalty fee of $15.
If you need a higher limit, call the credit union and ask if it’s possible to raise it. This is probably easier than getting another credit card – too
many cards can cause you to lose track of how much you’ve charged and get you bogged down with more debt than you can handle.
MAKE YOUR PAYMENTS ON TIME
If you have a balance due on your card or have charged anything on your credit card, you’ll receive a statement in the mail each month. It shows a list
of all of the charges that you made and the new balance. You can save money and avoid paying interest charges on purchases you’ve made by paying the entire
new balance before the payment due date (which is usually the 2nd or 3rd day of the following month). You can pay any amount between the minimum payment
due (which is listed on your statement) and the entire balance. Just make sure you at least pay the minimum before the due date every month.
If your payment is not received by the 8th day of the month, there will be a $15 late fee charged to your account. And if you’re 60 days or more past
the due date… the interest rate on your Visa will increase to 15.9% APR until you’ve paid on time for 6 consecutive months. Yeah, that’s not fun but you
see why it’s important to make your payments on time.
MAKE YOUR PAYMENTS AUTOMATICALLY
To help you make sure you make your payments before the due date, you can have the credit union transfer the money out of your account each month.
You can choose to have us pay the minimum payment due, a set amount, or the entire balance… it’s up to you. Just call the credit union at 378-0101 x 0
if you’d like to set up automatic payments (and remember to have enough money in your account to make your payment!).
GET CASH FOR EMERGENCIES
You can get cash with your "Plugged In" Visa at most financial institutions in the United States. It's called getting a cash advance. Just go to any bank or credit union where you see the Visa logo on the door and show them your credit card along with a photo ID. You can also get one at an ATM machine - just insert your credit card and use the PIN number that Visa sends you.
You won't want to do this for non-emergencies (like money for the movies or a new pair of jeans), because there is a cash advance fee of 2% of the amount you withdraw (with a minimum of $1 and a maximum fee of $5). Plus interest on cash advances starts being charged on the day you get the advance. But you can get a cash advance for any amount up to your credit limit...which can be a lifesaver in an emergency.
Or you can stop in and apply or call 378-0101 and we’ll mail you an application!
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