ABA Education Foundation Urges Consumers to Avoid Top Five Credit Mistakes

Bankers and Students Prepare for 5th Annual National Get Smart About Credit Day

WASHINGTON, Oct. 16 /PRNewswire-USNewswire/ -- The American Bankers Association Education Foundation today released a list of the five most common mistakes consumers make when using credit, in honor of its fifth annual National Get Smart About Credit Day on Oct. 18.

"Get Smart About Credit Day traditionally occurs in classrooms, but it's also a day to examine your credit habits and make positive changes," said Laura Fisher, ABAEF director. "Whether you're trying to manage your health or your finances, the gradual development of good habits leads to long-term success."

On Oct. 18, more than 2,800 bankers across the country will teach students about using credit wisely. Lessons will focus on managing a credit card, understanding a credit report, protecting personal financial information and avoiding overspending.

According to the ABAEF, the five most common credit mistakes are:

-- Paying late or missing payments: Pay as much as you can, as soon as you can, and always pay by the due date. To avoid paying late, schedule payments online, request a due date that suits you and call your lender if you're going to pay late.

-- Borrowing more than you can afford to repay: Consider what you can afford in good and bad financial times. Using all of the credit available to you will lower your credit score and put you in danger of going over your credit limit.

-- Ignoring the warning signs of credit trouble: If you're having trouble making payments, talk to your lender. Most creditors are willing to work out alternative payment plans, especially in emergency situations such as job loss or major illness.

-- Spending without a saving net: As little as $500 can cover common emergencies such as a car repair or an unusually high utility bill. Start a savings fund at tax time by splitting your refund between up to three separate accounts with IRS Form 8888.

-- Being careless with personal information: Shred all documents that contain personal information. Be alert to unauthorized charges by checking your accounts regularly and your free credit report annually.

To see if your local bank is participating in Get Smart About Credit Day, visit http://www.aba.com/aba/static/2007gsacbanklist.asp. Learn more about using credit wisely at www.aba.com/consumer+connection. Visit www.annualcreditreport.com to order your free credit report.