Bankers and Students Prepare for 5th Annual National Get Smart About
Credit Day
WASHINGTON, Oct. 16 /PRNewswire-USNewswire/ -- The American Bankers
Association Education Foundation today released a list of the five most
common mistakes consumers make when using credit, in honor of its fifth
annual National Get Smart About Credit Day on Oct. 18.
"Get Smart About Credit Day traditionally occurs in classrooms, but
it's also a day to examine your credit habits and make positive changes,"
said Laura Fisher, ABAEF director. "Whether you're trying to manage your
health or your finances, the gradual development of good habits leads to
long-term success."
On Oct. 18, more than 2,800 bankers across the country will teach
students about using credit wisely. Lessons will focus on managing a credit
card, understanding a credit report, protecting personal financial
information and avoiding overspending.
According to the ABAEF, the five most common credit mistakes are:
-- Paying late or missing payments: Pay as much as you can, as soon as
you can, and always pay by the due date. To avoid paying late, schedule
payments online, request a due date that suits you and call your lender if
you're going to pay late.
-- Borrowing more than you can afford to repay: Consider what you can
afford in good and bad financial times. Using all of the credit available
to you will lower your credit score and put you in danger of going over
your credit limit.
-- Ignoring the warning signs of credit trouble: If you're having
trouble making payments, talk to your lender. Most creditors are willing to
work out alternative payment plans, especially in emergency situations such
as job loss or major illness.
-- Spending without a saving net: As little as $500 can cover common
emergencies such as a car repair or an unusually high utility bill. Start a
savings fund at tax time by splitting your refund between up to three
separate accounts with IRS Form 8888.
-- Being careless with personal information: Shred all documents that
contain personal information. Be alert to unauthorized charges by checking
your accounts regularly and your free credit report annually.
To see if your local bank is participating in Get Smart About Credit
Day, visit http://www.aba.com/aba/static/2007gsacbanklist.asp. Learn more
about using credit wisely at http://www.aba.com/consumer+connection. Visit
http://www.annualcreditreport.com to order your free credit report.
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