News You Can Use

University Relations
News Bureau (662) 325-3442
Contact: Jennie McGee
May 14, 1998

STARKVILLE, Miss.-Telephone and mail solicitations for "the lowest" credit card rates usually are offers too good to be true, says a Mississippi State University authority on finance and economics.

According to Larry White, consumers tempted by the advertised offers need to keep one thought prominently in mind: "You don't need a lot of credit cards."

In addition to the possibility of overextending credit limits, multiple cards also increase the risks incurred if they become lost or stolen, he says.

"Go for the one credit card that offers the greatest amount of benefits at the lowest cost," White advises. Before making the final selection, he suggests asking yourself the following questions:

How will I use this card and how much can I afford to pay? Credit cards must be used in a responsible manner. Don't charge more than you can afford and, if possible, plan to pay off the balance each month.

What will it primarily be used for? You may wish to restrict credit card purchases to certain categories like travel, food, clothes, or entertainment.

Where is it accepted? Choose a card that has worldwide acceptability.

What are the payment terms? Determine if the annual fee and percentage rate are the most competitive. Also judge whether the credit limit is acceptable for your financial circumstances.