Understand your credit score.

Consumers rely on credit cards but don't realize the downside

“Another survey, this one by J.D. Power, says that nearly 1 in 5 bank customers are unaware of how their credit score is determined. "The highest rate of respondents that are unsure are the vulnerable and under-40 populations," according to the June survey of 4,000 U.S. retail bank customers nationwide.

Like many, you may believe that carrying over a balance on your credit cards from month to month helps your credit. Not true. It might actually lower your credit score thanks to a credit scoring factor called credit utilization.

Of course, inflation is a price poison that can slowly bleed value out of a dollar, and credit cards might help to ease the budget pain. But debt is not a long-term cure. Work to protect your spending power from inflation and carry credit card balances as sparingly as possible.” This information is provided by NerdWallet

Learn how to create a budget and manage your credit by reading a book on financial essentials.

Financially Independent Teens, Financial Essentials , Financial Essentials for Women by W omen and Financial Essentials for Couples. These books are available on Amazon as a Kindle or print book. Our website has additional information that you may find useful.

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