People who consider a credit card "free money" are headed for trouble. Here's an example:
Hired as a co-op student at a credit union, Heather worked hard and received a promotion. She wanted new clothes, so she applied for a credit card.
Heather paid the minimum monthly payment of $20. Because of her payment record, the credit union agreed to raise her credit limit. Heather was off to Jamaica, where she used her credit card a lot.
Heather paid down her credit card debt, then ran the balance up again--again and again. Five years later, Heather owed more than $5,000--and, technically, she still was paying for her Jamaica trip. Twelve years later Heather finally paid off her credit card debt! Not only did she pay triple the amount charged; she was unable to save money.
Start slowly with your first credit card. A smart money management rule is to avoid paying interest on your credit card charges by paying the balance in full each month. That way you'll enjoy the convenience a credit card can bring, but you'll avoid unnecessary finance charges and debt that never seems to end.
At True North, we can start you out with a credit card at a fixed rate, so you don't have to worry about rude surprises, and we also offer no annual fee and no fees on cash advances, balance transfers, or convenience check usage! Contact your local branch today for more information or apply online!