1. Choosing and Using Credit Cards

2. Beware of the Free Shirt! Many credit card companies offer students free items just for filling out an application. Every time you fill out an application it counts 10 points against your credit rating. If you are approved you will soon have cash at your finger tips in excess of $5,000, which might sound good, until you get that first bill!

3. But I have to have one to build my credit rating… While credit cards can build your credit rating, you can also do that by putting your name, instead of your parents on utility bills or cell phone bills.

4. Credit Card Terms A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application.

5. Annual Percentage Rate (APR) The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements. The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.

6. When considering the APR Many cards offer introductory APRs that are very low. Read the fine print, they often jump to as high as 20% after an initial period of a few months. Other have hidden APR jumps for late or missed payments. Even your first late payment can cause your rate to jump to 20%.

7. How it can add up quickly… For example: 20.9% APR $3000.00 current balance $75.00 minimum monthly payment $10.00 extra amount paid over monthly minimum Results in a regular payoff time of 23 years, 5 months and 11 years, 6 months when making the per month extra payment.

8. Annual Fee Check the annual fee. Most incentive cards (for example, airline mileage) charge you an annual fee for having the card. Look for a no annual fee card, if you cannot find one, then shop around for the lowest annual fee. It should not exceed $100.

9. Free Period Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account.

10. Transaction Fees and Other Charges A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.

11. If you decide to get a one… Do your research about what to look for Shop around for the best card Talk to your parents about it Only get one! Use it for emergencies only and pay it off every month If you get into debt ask for help immediately!!!!!