Acceptance, Bills, Reports, Late Fees, etc.

Once you have been accepted for a credit account you will take on the responsibility set forth by the credit agreement. The agreement will state that you are now responsible for paying back the money you borrow on a regular schedule at the rate you agreed upon. Each month your creditor will send you a statement or a coupon book which you will use to make a minimum payment. Typically, making a minimum payment on a credit card account usually only covers the interest and does little to effect the balance of the account. If possible, you will want to try to pay a little more than the minimum payment required so that the account balance is paid down each time. You are not required to pay more than the minimum payment that is required but it is smart to pay as much extra as you can to keep your balance down.

Late Fees

It is very important to make sure that your payments on credit accounts are made on time as required by the creditor. Failure to pay your accounts on the due date specified on the statement will lead to late changes imposed by the creditor. If you are not careful, late charges can add up quickly if you make consecutive late payments. Be sure to make at least the minimum payment each month to avoid unwated late fees.

Credit Reports

Once you have established credit over a period of time you may want to check your credit report. A credit report is a statement which outlines your existing credit and credit history. Creditors use this report to check your "track record" with other creditors to ensure you are making payments on time and have not defaulted from any of your accounts. Creditors will use this report each time you apply for more credit elsewher or when you are looking to get a loan, say for a car or a home. If you have been late on making payments to creditors or if you have taken more credit than you can handle, the credit report can paint a negative picture of you to other creditors.

To get a copy of your credit report you can go online to www.experian.com or to www.equifax.com and order a report. It is a good idea to check you credit report and score before applying for more credit. This will give you the opportunity to see you credit rating before the potential creditor and determine what your chances of getting the new credit are.