​What is a credit?

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• The ability to borrow money and pay it back later.

• What is credit?

• Building a Credit History: On-time payments establish a positive credit history, leading to better loan terms and interest rates in the future (e.g., mortgages, car loans).

• Convenience and Security: Credit cards offer secure transactions, rewards programs, and purchase protection.

The Power of Credit (Positive)

• Debt Trap: Minimum payments can trap you in a cycle of high-interest debt.

• Overspending: Easy access to credit can lead to impulse purchases and exceeding your budget.

• Negative Credit History: Late payments damage your credit score, making borrowing more expensive.

The Perils of Credit (Negative)

Credit is a tool, not a replacement for a budget. Only spend what you can afford to repay.

​​Live Below Your Means

​Aim to keep your credit card balance below 30% of the limit.

​​Credit Utilization Ratio

​Set up automatic payments to avoid late fees and interest charges.

​​Pay on Time, Every Time

Regularly check your credit report for errors and fraudulent activity.

​​Monitor Your Credit Report

​Building a Healthy Credit Strategy

• Annual Fees: Consider cards with no annual fees if you rarely carry a balance.

• Interest Rates: Choose a card with a low introductory and ongoing APR (Annual Percentage Rate).

• Rewards Programs: Select a card with rewards that align with your spending habits (e.g., cashback, travel points).

Credit Card Comparison & Selection