Instead of working in your favor (as with a savings account), the power of compound interest works against you with debt.
If you start with a $500 balance on your credit card at 19.8% interest, then each year make two additional charges of $75 each, and pay only the minimum monthly payment of 3.5% of the balance or $20, whichever is greater, after 25 years the interest charges amount to $3,121.
After 25 years, you still have a balance of $624!
Tags: compound interest, credit card, Primerica, savings
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Your credit score can determine:
• Whether you will be approved for credit
• The interest rate on your loans
• The cost of your homeowner’s and car insurance
• Whether you are approved to rent a house or apartment
Shouldn’t you know the score? Primerica’s DebtWatchers™ program gives you your FICO® credit score, notifies you via email or text messages of key changes to your Equifax Credit Report,™ and provides access to four Equifax credit reports every 12 months with continuous enrollment.
What Makes Up My Credit Score?
FICO® credit scores are the most widely used by lenders. Scores range from 300 to 850.
Atlanta Journal-Constitution, July 6, 2008
Tags: credit card, credit score, debt, FICO, Primerica
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