The Basics

Your Credit Score & How To Build Good Credit
Are You Credit Wise?
What do I need to know about credit?
The Basics are, well, basic. Follow these four pointers and you’ll be off and running.
1. Look for hidden costs.
When applying for a credit card, look beyond “No Annual Fee” for hidden costs. There are other fees that can cost you more in the long run. For instance:
  • Late Fees. Most cards charge fees when payments arrive late. Some issuers have a set fee, while others charge a percentage of the minimum due. Paying late fees just twice in a year could cost more than an annual fee - so take every step to ensure your payment arrives on time.
  • Over-Credit-Limit Fees. If you charge more than your credit limit, most issuers have a set fee, such as $10 or $15, while others charge a percentage, such as 5%, of the amount you are over your limit.
  • Lost Card Replacement Fees. Some issuers charge cardholders whose cards have been lost or stolen more than once or twice. These fees are usually $5 or $10.
2. Build good credit.
  • Always pay your bills on time.
  • Keep balances low on "revolving credit" (i.e., credit cards).
  • Pay off debt instead of moving it around.
  • Do not close unused credit or store cards as a short-term strategy to raise your credit score.
  • Don't open lines of credit that you don't need.
3. Know your rights
  • You have the right to get a free copy of your credit report, once every 12 months, from each of the nationwide consumer credit reporting companies - Equifax, Experian and TransUnion. For instant access or more information on obtaining your free credit report, visit www.annualcreditreport.com or call 1-877-322-8228.
    Learn About Your Credit Report
  • If you’re 18 years old or older, you cannot be denied a card based on your age, racial background, gender, marital status, religion, national origin, or participation in a public assistance program. Your credit history and other personal information are the sole basis for a financial institution’s decision about issuing you a card.
  • You have the right to protection against unauthorized purchases. As a MasterCard cardholder your card issuer won't hold you liable in the event of an unauthorized use of your U.S.-issued MasterCard card. This coverage extends to purchases made in a store, over the telephone, or online.
    Learn more about Zero Liability
4. Get the FAQs
The answers to some of the most common and most important questions – from whether you are guaranteed a card after being pre-approved to medical insurance issues – are here. Read Frequently Asked Questions