Using Credit

Buying on credit is easy. It’s convenient. It is also expensive.

Before you buy anything on credit, consider your purchase carefully. Ask yourself if you really need the item you are about to purchase. If the answer is no, then don’t buy it! Take your time when you’re shopping. If you buy on impulse, you may end up with something you don’t want or need.

There are several types of credit. Loans from banks, credit unions or trust companies are common. You can also get credit cards from credit companies, department stores and service companies such as gas stations. When you’re buying a large item, like furniture or a car, the seller may offer you financing.

If you must use credit, use it wisely.

Pay off your credit card balance each month to avoid paying interest. If you know you won’t be able to pay off the balance all at once, look for a cheaper way to buy the item. Usually, it is cheaper to borrow money from a bank, credit union or trust company than it is to use the credit offered by the store. Banks, credit unions and trust companies have lower interest rates.

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