Smarter Swiping Equals Better Banking
Whether you are interested in a low-rate or rewards-based features, credit cards are a powerful tool for members! With spending power like that there comes a great responsibility, managing your use of this tool is vital to ensure you continue to get access to the best opportunities in the future. Garden Savings doesn't just think about how to get you the best products, but we also think about how these products could help you with your financial goals.
U.S. consumers are once again increasing their collective credit card debt, which now exceeds $1 trillion. The Credit Card Accountability, Responsibility and Disclosure (CARD) Act protections, which went into effect in February 2009, require card issuers to disclose rates and other information more clearly. This should make it easier for consumers to monitor what they owe. But, regulations can't prevent people from making poor debt management habits.
Here's some advice for controlling credit card use:
- Actively manage your account. Review and examine your credit card statements and transactions promptly. Look for unauthorized use, of course, but also look for announcements. Adding your card to your mobile wallet gives you real-time alerts for when you card is being used. This means you will know as soon as something is charged to your card and avoid having to pay for unauthorized charges.
- Keep your credit score healthy. The higher your score, the easier it is to get a loan and, often, the more favorable the interest rate. The most important ways to maintain and improve your credit score is by paying all your bills on time and not taking on excessive debt. If you don't have enough credit history this could also delay your access to other loan products. Check out our Credit Builder or Rebuilder Loan to gain some financial wellness.
- Watch your card balance-to-limit ratio. It's OK to occasionally "max out" your credit card for important purchases, as long as you can pay it off in a few months. But over the long term, try to keep your total credit card debt to a reasonable 10% to 20% of your total credit limit. If the ratio gets much above 20%, and you can handle the payments, ask for a higher limit on your current card or get another one. Don't add new cards too often, though, and don't close several unneeded accounts in a short period—either move can lower your credit score.
- Understand the fees Most credit cards have hefty annual fees, balance transfer fees, and over-the-limit charges. Before you sign up for a credit card you want to make sure you understand how and when those fees will be charged. Our Garden Savings Mastercard Credit Cards are a member favorite becuase we do not charge any of those pesky fees.
If you want some spending power with tools to help you continue towards your financial goals now's the time to apply for our Garden Savings Mastercard Credit Card. Whether you are interested in a low-rate or rewards we have you covered, with no additional fees. Apply online today!
Garden Savings Federal Credit Union
The local Credit Union in your neighborhood.
A Better Place to Bank.
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