use your credit wisely
Credit cards are a convenient way for ARHCU members to make purchases, they offer fraud protection, can help build your credit and they are useful for emergencies. Although credit cards have several benefits, many Americans are consumed with credit card debt because of overspending and not paying off monthly balances. To quite a few, it is enticing to make minimum monthly payments but if you make only the minimum payment (usually 2-3% of the balance) each month, you will be paying off the debt for years (a portion is from growing interest charges).
use your credit card as a cash substitute, not as a loan
A credit card is a very convenient way to purchase items and services. It is safer than carrying around a lot of cash. Use your credit card as a cash substitute, not as a high interest loan. If you are short on money, find out about other loan options ARHCU has to offer by calling our 24/7 Live Operator Telephone Branch at 916.985.6700 or 800.669.1313 (outside of the 916 area code).
charge only what you can afford
Use your card for emergencies or if you have cash in the credit union to cover the purchase. If you can't pay off the entire balance (or almost everything) each month, then you are overspending.
create a budget
Create a budget to get a handle on your spending. Keep a daily log of your spending to make sure you stay on track. If you continue to overspend, leave your credit card at home to use only for emergencies.
pay the balance off each month
The most important concept regarding wise credit card use is to pay off the entire balance each month. If you cannot pay off the entire balance, pay off as much as you can. To keep on track, stop using your credit card until you pay off the entire balance.
prompt payment will help you avoid late fees
Late fees for overdue payments add up and too many late payments can damage your credit record. Pay your credit card bill ahead of time.
consolidate your cards
You may only need one card with a fixed rate. The ARHCU Visa® Credit Card fits many members' needs. Click here to find out how you can value your credit card.
keep records
As soon as you receive your credit card statement, verify that all purchases fit within your budget and there are no mistakes or fraudulent charges.
safeguard against identity theft
Identity theft is a serious crime. People whose identities have been stolen can spend months or years - and their hard-earned money - cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit. Four helpful web sites to learn more about identity theft and protecting yourself are:
Identity Theft Resource Center
if you think your identity has been stolen, here's what to do now:
Steps |
Links |
(1) Contact the fraud departments of any one of the three major credit bureaus to place a fraud alert on your credit file. The fraud alert requests creditors to contact you before opening any new accounts or making any changes to your existing accounts. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will be automatically notified to place fraud alerts. Once the alert is placed, you may order a free copy of your credit report from all three major credit bureaus. |
Equifax 800.685.1111 Experian 888.EXPERIAN Trans Union 800.888.4213 |
(2) Close the accounts that you know or believe have been tampered with or opened fraudulently. Use the ID Theft Affidavit when disputing new unauthorized accounts. |
ID Theft Affidavit |
(3) File a police report. Get a copy of the report to submit to your creditors and others that may require proof of the crime. |
United States Police Departments |
| (4) File your complaint with the Federal Trade Commission (FTC). The FTC maintains a database of identity theft cases used by law enforcement agencies for investigations. Filing a complaint also helps us learn more about identity theft and the problems victims are having so that we can better assist you. |
