And here's a little key insight into the mind of the average credit card issuer.
When you only pay the minimum balance that card company likes you.
>> And I can't deny the fact that you like me.
Right now.
>> These credit card companies really like you, because you are forking out interest
payments at obscene rates and you never default.
Good for the bank, but way bad for you.
So, here's your first big tip.
Pay off your credit card balances as quickly as you can,
to avoid having interest payments erode your buying power,
particularly when you're being charge obscene interest rates.
And that key tip, brings us to our first key question.
How the heck do so many credit card customers
wind up paying exorbitant interest rates like 25% or more?
>> Well, it's all about the risk the credit card companies claim you pose with
the possibility of you defaulting on your credit card bills.
Enter stage right, your own unique credit score and credit report.
Now hear this.
These two metrics are the single greatest determinant of both whether you can get
credit to begin with, and whether you'll be charged the lowest or
highest interest rates.
So we really need to understand how credit reports and
credit scores determine both your access to credit and the rates you'll be charged.
Now, on to part two, when your ready.
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