Managing Your Credit

Six Ways to Help You Pay Less Interest

1. Whenever possible pay cash or use your debit card - usually the least expensive way to finance a purchase.
2. Use your credit card only if you can pay your balance in full each month by its due date.
3. If you can't pay the full balance, make the minimum monthly payment by the due date. You'll pay less interest if you make the monthly payment on time, than if you wait to pay the balance in full after the due date - and late payments can adversely affect your credit history too.
4. Carefully research the types of credits cards and choose one that fits your needs. (For example, if you don't routinely pay off your balance in full each month, select a card that charges the lowest interest you can find).
5. Use a line of credit for ongoing purchases, rather than a credit card. Lines of credit typically carry lower interest rates than credit cards.
6. Pay off your higher-interest debts first. For example, if you have a balance on a bank credit card and a retail store card, chances are you're paying higher interest on the store card. Pay it off first.

Next: Tips to help you establish a good credit history