ink of the possibilities! With a credit
card, young adults can enjoy more
financial freedom while building a
strong credit history. It's a win-win when
used responsibly.
How it works:
A credit card is a loan. You use the card to
make purchases and pay for them when
the bill (or statement) arrives, which you
can pay in part or in full. You'll be charged
interest on the balance you don't pay off.
ere are benefits!
• Credit cards are convenient and
accepted almost everywhere.
• You can build a good credit history by
using them wisely.
And there's a downside…
• If you don't pay off your balance, you'll
pay interest on the money you still owe.
• Late payments will hurt your credit
rating and may incur fees.
• You may be tempted to overspend or
rack up more debt than you can repay.
Geing Your
First Credit Card
What College-Bound
Kids Need to Know
What are your options?
• Secured credit card – requires you
to put down a deposit, equal to your
borrowing limit. It's a low-risk card
because you can't spend more than
your deposit.
• Authorized user – allows you to use
the card without liability for payments.
If you're an authorized user on your
parents' account, you'll get to use a card
with your name on it, but your parents
will receive the monthly statements.
• Student credit card – intended for
full-time college students, these cards
vary on terms, fees, and interest rates.
e key to choosing your first credit card
is to do your research first, manage your
spending, and pay the monthly bill in
full if possible and on time, every time. If
you're ready, consider the Redstone Visa®
Traditional card. Visit redfcu.org for
more details.
r e d f c u.o r g
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All loans subject to credit approval. Rates, terms, and conditions are subject to change without notice. Other restrictions may apply. RFCU is an Equal Credit Opportunit y Lender.
