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  • No, honey. That's not what i'm saying. Credit can be a great thing! You just have to be responsible. There's a right way and a wrong way to handle credit and loans.
  • Really? What are the responsible and irresponsible ways?
  • Let's start with the irresponsible ways. Don't borrow money when you'll have no way of paying it back. Don't pay your bills back late. And don't use your credit card like its a debit card! These are not responsible ways and can create unhealthy habits.
  • Okay, and the responsible ways?
  • The responsible ways to handle credit and loans are to always read your credit agreements and make sure you understand and agree to everything you're signing up for when receiving your credit card. Another thing is to keep your balances low. This makes it easier to pay your loans back. When your bills are due, you should pay more than the minimum due, this can make your interest rates lower and credit companies love when you pay more than the minimum. Pay your credit card bills on time and monitor your credit cards for fraudulent charges because you can go into debt if somebody else is using your card without your knowledge.
  • Wow mom! Thank you. I have another question though. What are the benefits of having good credit?
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