Using credit

This week, the Office of the Attorney General’s “Consumer Caution Corner” seeks to educate consumers about using credit and what factors impact one’s credit history.

You can build a credit history or improve your credit history. One way is to get credit and use it wisely. That takes time.

How can I get credit?

If you do not have credit, the best place to start is with a credit card. Compare several credit cards. Apply for the credit card that gives you the best deal. Look for:

• a low annual fee

• a low APR, or annual percentage rate

• lower fees:

• if a payment is late

• if you go over your credit limit

• a long grace period. This is the time between when you spend money and when the card charges you interest. Look for one that is at least 25 days long

If you cannot get a regular credit card, try to get a secured credit card. Apply only for cards that report your history to the three credit reporting companies. Look for a secured card with:

• no application fee

• a low APR, or annual percentage rate

• lower annual fees

• no processing fees

• higher interest rates on the money you deposit

How can I improve my credit?

You can use credit to build and improve your credit history.

• Use your credit card a few times a month.

• Buy things you can pay for that month.

• Pay the whole credit card bill every month. Do not leave a balance on your card.

• Pay your bill by the date it is due. Paying even one day late will cost you money.

People who engage in these practices start to see a better credit history over time. Each week, the OAG’s Consumer Protection Education Program shares Federal Trade Commission publications that provide consumers and businesses with the “know-how” to identify and protect themselves from unfair trade practices and marketplace schemes. If you would like to file a consumer complaint, please pick up a form at the OAG (ion Capital Hill) or request one by email from consumer_counsel@cnmioag.org. After completing the consumer complaint, please submit it by email or in-person.

We cannot act as your private attorney. If you need legal assistance, we will recommend that you contact a private attorney or legal aid organization. We cannot give legal advice or act as your private attorney.

Michael J. Cyganek is consumer counsel of the Office of the Attorney General.