Credit cards
When used correctly, credit cards can be a great tool in financial planning when it comes to reaching financial goals. When used incorrectly, poor credit can be devastating to your finances and your financial well-being.
The Washington State Department of Financial Institutions partnered with KCTS9 to create Cash With Draw, a series of informative hand-drawn videos that walk through key financial strategies.
Advantages of Credit Cards
- Convenience
- Credit card statements can help you track your spending
- Incentives and rewards earned
- Helps build your credit score
Disadvantages of Credit Cards
- Easy to spend beyond your means
- Fees if not paid on time or paid off each month
- If you only make the minimum monthly payment which is a small fraction of what you owe, the balance will accrue interest and cost you more over time
- Fees for cash advances
- High interest rates
Credit Tips
- Create a budget and stick to it.
- Manage your accounts: keep your balances low and make your payments on time.
- If you are having trouble paying, contact your creditor. Don’t wait and hope it gets better.
- You can request a free copy of your credit report every 12 months.
- Credit cards don’t hurt your credit score as long as you make your payments on time.
Resources for Credit Reports and Scores
The Consumer Financial Protection Bureau has a variety of resources for personal finances including credit cards, student loans, and managing your money.
Credit Cards – Learn about finding the right credit card for you, applying for a credit card, paying off a credit card, and other credit related topics.
Credit Reports and Scores – Learn the difference between credit reports and scores, what factors affect your credit score, and how to identify fraud or theft on your account.