In this episode I talk through one of the easiest tools to use to build credit; Credit Cards. But first a disclaimer that getting into credit card use is a slippery slope that needs a lot of discipline and without which can lead to heavy indebtedness without applying the proper knowledge that we cover in this episode.

1. Credit bureaus are companies that provide credit reports on individuals and institutions to creditors. 
   • Creditors are the people who provide loans ie. mortgages to the general population. Well known credit bureaus are ie. Experian, Equifax and TransUnion.
2. Credit scores are measures of credit worthiness ie. the FICO credit score which is created by they Fair Isaac Corporation (FICO). 
   • These credit scores are used by credit bureaus to generate credit reports on consumers.
   • Credit scores range from 300-850.
3. FICO scores take into account data in 5 areas:
   • Payment history.
   • Current level of indebtedness.
   • Types of credit used.
   • Length of credit history
   • New credit accounts.
4. Types of credit card holders:
   • Transactors. Those who pay off their balances in full every month without carrying over any balance.
   • Revolvers. Those who only pay a portion of their credit card balance and revolve/carry over the remainder forward to the next month.
5. Main things to be aware of on a credit card bill:
   • Due date (Normally 30 days from close of the billing cycle** confirm with your provider).
   • Statement balance (Amount you owe during that billing cycle).
   • Minimum payment due (Normally 3% of the total statement balance or $25; whichever is higher** confirm with your provider).
6. Always check the fine print of any credit card offer or statement and be on the lookout for:
   • Late fees.
   • Transferring balances fees.
   • Cash advance fees.
   • Annual fees.
   • Annual percentage rate (APR).
7. Lessons learnt:
   • Try to be a transactor and not a revolver. ALWAYS if at all possible pay off your credit card balance at the end of every billing cycle.
   • Automate payments/set a reminder for when your payments are due.
   • Maximize rewards earned.
   • Avoid fees ie. annual & late fees.
   • Avoid paying interest by paying off your bill in full so that no balance is carried forward.