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Credit Comes With Risks


On the topic of fees, credit isn’t without risks. The interest is understandable– you pay for the privilege of taking out a loan, which can be a low percentage like with mortgages, or high percentage like with credit cards. As long as something is paid quickly, the interest is not as problematic as fees that may be hidden in the paperwork. Credit cards are especially notorious for hiding fees, which can add up quickly. When considering building your credit, you may need to do a little more research. For instance, a bank may offer a credit card that lacks promotional offers, but has lower interest rates and no fees, so long as you have an account with that bank. This beats a card with 0% interest for one year but a hefty fee for every month thereafter. Do not expect to cheat the system by jumping from card to card, too, because it’s easy to forget and will look bad on your credit report.


  1. Interest payments are to be expected, low or high. Pay the balance in full every time to avoid interest payments. Credit cards often carry hidden fees, even if you pay the balance. Do research, trust banks over third party lenders. Even if a card says 0% APY, that promotion will expire