1. CREDIT
BEGINNERS
FOR
Good credit can open doors. It can
help you get a low credit card APR
and loan rates—and it can make a
difference in getting approved for an
apartment lease and/or what your
finance charges are when leasing or
financing a car.
Having a good credit history is one of
the best ways to prove to lenders that
you’re financially trustworthy. Credit
bureaus keep a record of your credit
habits —information such as how long
you’ve had your individual credit
accounts, the account limits, balances
and your payment history including
late payments.
When you’re just starting out, you may
not have much of a credit history simply
because there’s nothing to report.
There’s nothing bad on your report but
there’s also nothing good either; so
lenders have little to no information on
your credit worthiness.
This is when having some type of credit
card comes in handy. By making small
purchases and paying them off on
time, each month, a credit card can
help build that good credit.
CREDIT CARD?
HOW CAN I GET A
You can apply for a credit
card in just your name
if you are at least 18. If
you are 18 but under 21,
you can respond to a mail
offer or apply online. If you
are 21, you can apply by
phone, by mail, or online.
WHY
SHOULD
I WANT
GOOD
CREDIT?
• Proof(s) of your identity that includes your name, SSN, and current address.
Ex. - a social security card, a tax payer form, and a recent utility bill
• Proof(s) of enrollment in an accredited college or university that includes
your name, school name, and is dated in the last six months. Ex.- current
class schedule or school ID
• Financial information that indicates you have the ability to make your
monthly credit card payments
Credit card companies may want to see:

2. WHAT’S
AN APR?
APR stands for Annual Percentage
Rate. It’s an interest rate used to
calculate interest charges on
your balance. The APR may
vary depending on the type
of transaction.
If you pay your
monthly statement
balance in full every
billing period by the
due date, then you
may not have to pay
any interest charges
for purchases.
You typically cannot
avoid paying interest on
Balance Transfers and Cash
Advances. If you don’t pay
your balance in full every
month, you will pay an
interest charge based on
your APR.
Some credit cards offer a
promotional or introductory
APR—for instance, a
low or 0% APR for six
or nine months. After the
introductory time period is
up, you then pay a higher
APR which is typically
a variable purchase APR.
Before applying for a credit card,
here are a few things you need to know.
?WHAT SHOULD I
KNOW BEFORE
APPLYING FOR A
CREDIT CARD?
Most credit card companies use a calculation
method called the daily balance. Everyday
the company will start by figuring the Daily
Balance for each Transaction Category* and
multiply it by the Daily Interest Rate to get the
Daily Interest Charge.
The Daily Interest Charges then get added
up together to get the Total Interest Charges
for a billing period. See your cardmember
agreement for details on your card.
How are my
calculated?
INTEREST
CHARGES
Transaction
category*
APR
DAILY INTEREST RATE
DAILY INTEREST CHARGE
365
Days
Daily
Interest
Rate
÷ =
Daily
Balance
Daily
Interest
Rate
x
+
+
+
=
beginning
balance
new
transactions
Daily Interest
Charges
+new fees
other credits
adjustments
new
payments
*Transaction categories typically include standard Purchases, standard Cash Advances and different promotional balances, such
as Balance Transfers.
Daily
Interest
Charges
on previous
Daily Balances

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What’s
a credit
limit?
A credit limit is the maximum amount that you can
charge on your credit card. It’s typically based on your
creditworthiness. Your credit limit may increase as you
build a good record of paying your credit card bill on time.
Please review your credit card agreement for how your credit card works. Terms and conditions
may vary across companies and product types.
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FIND OUT MORE
ABOUT CREDIT
for using a credit card?
Some credit cards have annual fees, some
don’t. However, you may get a late fee if
you miss a payment. Other fees may include
balance transfer fees, cash advance fees,
returned payment fees, returned check fees and
minimum interest charges. See your cardmember
agreement for details on your card.
ARE THERE
FEES
You may pay your entire balance shown on your credit card billing
statement at any time. Each billing period you must pay at least the
minimum payment due by the payment due date shown on your billing
statement to keep your account in good standing. To cut your interest
charges you can make more than the minimum payment.
With some companies, you can choose a due date that is more
convenient for you. This will be the same day every month.
WHEN DO I HAVE
TO MAKE A CREDIT
CARD PAYMENT?JANUARY
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