The Bottom Line
By Susan L. Smith,
Director of Training & Financial Education

Meet Susan L. Smith:

In years past, credit cards were not the financial support system they are today. Department stores only accepted the card they issued. Restaurants, grocery stores and gas stations only accepted cash! If the maximum charging limit was set at $5,000.00, when the balance reached $5,000.00 the card would be rejected. Ah, no over limit charges.

The Office of the Consumer Credit Commissioner has a lot of information on interest rates and laws pertaining to the rates. As consumers, we should be doing a lot more research before signing up with the credit card company that sends mailers to our homes. The details are in the small print. Seriously, take a yellow marker and read the fine print. Highlight the important facts, i.e., interest rate plus prime, annual fee, membership fee, grace period for payments and charge for balance transfers. What are terms for cash advances and convenience checks? They will be very different from terms for purchases. Did you know you could make payments directly to the cash advance or transfer balance? Check with your credit card company for details and follow up to make sure it is applied correctly.

Another task with the yellow marker is for your credit card statement. Highlight the balance, due date, interest rate and date the last payment posted. Read those neat little paragraphs printed below the payment detail and highlight anything important. There is a world of information available; we just have to take the time to read it.

Credit card companies, among others, use credit scores to determine interest rates. Rates can be increased if your credit score drops because of an unrelated financial problem. As a wise consumer, it is up to you to choose the best product for your use.

Do you know the interest rate on each card you use? Awareness is a very important tool to financial success.

Here's to a happy and financially successful 2008. We look forward to hearing from you.

Happy New Year!

Susan L. Smith, Director of Training & Financial Education of Consumer Credit Counseling Service of Greater Dallas. You may email her at TheBottomLine@cccs.net.