Money Talks News - When it comes to credit scores and managing credit, people can have a lot of questions.
Americans should be experts at credit, since many of us use it from an early age, but do we know as much as we think we do?
We are going to test your skills with some questions.
Adam Levin, author and founder of Credit.com, will provide the correct answers.
First question is in terms of what is in your wallet. Exactly how many credit cards should you carry?
"More than one. Beyond that, it's up to the individual," Levin said. "But you should certainly have a credit card that you use for everyday expenses, which is a rewards card, and then have at least one more card which is a low-interest rate that's available for emergencies."
Next question, does carrying a balance on your cards improve your credit score?
"No, it doesn't improve your credit score, but it may make the credit card company like you more," Levin explained.
The next question is one that comes up a lot: When you are trying to pay off a credit card balance, do you attack the one with the high-interest rate or the biggest balance first?
"Always high-interest rate," Levin stated. "Because the faster you get the high-interest rate down, the more of your dollar actually goes to pay the low-interest rate balance."
Next, should you co-sign for your kids, siblings, parents or friends?
"Co-signing can be very, very dangerous, especially when the co-signer never sees the bill," Levin explalined. "And never knows if the primary signer has actually run into financial trouble until it's too late."
Finally, if you are obsessed with your credit score, how often should you check it?
"As often as you possibly can," Levin said.
If you are going to use credit, the more you know, the better off you will be.
The best classroom to learn more about credit is on the Money Talks News website. Just go there and do a search for "Credit."