Important things to know about Credit Cards

Nov 2, 2022Financial Literacy

According to the Federal Reserve, approximately 84% of adults in the United States have at least one credit card.  Credit cards can be a valuable financial tool, but if mismanaged can be quite costly.  

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is understanding your credit score and reports or preventing overdraft fees, our curated playlists will provide you with important information.

Credit Cards:

 Using credit is one way to borrow money.  Credit cards may be used to draw on a line of credit with the understanding that you will pay that money back later, with interest, and sometimes with other additional fees.  Credit cards work by establishing a line of credit, which is an agreement between the cardholder and financial institution.  This line of credit outlines terms such as credit limit (how much you can borrow), your annual percentage rate (APR), and other fees.

 Our Credit Cards module, located in the Financial Foundations playlist explains other factors of how credit cards work, such as payments, and building a credit history.  The module also dives into five key benefits of using a credit card, and very important factors about the cost of different cards.  A cardholder’s needs will vary person to person, but it is critical to research and understand how to go about picking a credit card, as well as how to remain secure when using it.  With financial fraud on the rise, no one is immune from credit card theft.  Better understanding how cyber-crime occurs can go a long way toward preventing it from happening to you.  Complete this module to better understand if a credit card is right for you.   

 The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

 Explore the program today:

 *The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.

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