//Borrowing Like a Boss
Knowing the basics about credit makes you anything but basic. You’ll appreciate the knowledge when you need it. Start your credit journey by learning how it works before using it. Like many things in life, if you can start on the right foot, it’ll make it easier in the future. Here are five credit tips to commit to memory:
- Credit cards aren’t free money. They’re borrowed money you have to pay back.
- Always have a plan for how you’ll repay what you borrow.
- Financial institutions charge interest to borrow money. But there’s a loophole with credit cards! Pay off a credit card in full each month, and you won’t pay a penny of interest.
- Your credit score is like a report card grade of how you’ve used credit. It impacts what interest rate you’ll receive when you borrow money. And could affect your ability to buy a car, rent an apartment, and get a job or a cell phone.
- Build a good credit score by making timely payments and not maxing out credit cards.
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Elements of Money is a financial information and content resource for teens provided by BALANCE. SRP Federal Credit Union does not provide, and is not responsible for, the products, services, overall website content, security, or privacy policies on this site. These services are offered as a member convenience only and your participation is strictly voluntary. Mobile carrier message and data rates may apply. SRP cannot guarantee and does not represent that your credit score or any other personal financial goals will improve by use of these services. Teens accounts at SRP Federal Credit Union are for ages 13 through 17 and require joint ownership of the minor’s parent or legal guardian over the age of 18. Membership eligibility requirements apply. Please visit a branch location or www.srpfcu.org for more information. SRP Federal Credit Union is federally insured by NCUA.
