What Kind of Credit Do I Want?

Are used for buying lots of small purchases and save you the trouble of always carrying cash. There is a limit to how much you can charge to a credit card. Do not go over this limit or the financial institution may charge you. If you pay off all you owe in the billing period, you will not be charged interest. As long as you pay off the minimum amount on the due date, you can keep your credit cards open as long as you want. Shop for a credit card with the lowest interest rate possible. Check to see if it has an annual fee. Some credit cards offer rewards programs, which let you earn points for charging things that you would be buying anyway.

Is a loan made for a certain length of time with payments of the same amount made each month. These are for large purchases such as a car, boat or personal loan. The lender uses the car or boat as "collateral" and could take it back if you didn’t pay off the loan. Navy Federal offers loans for new and used cars, boats, motorcycles, RVs and for special occasions such as a wedding or vacation.

Is like a credit card because you have a set amount that you can charge. That amount can be renewed if you make payments to the credit line on time. You use a revolving line of credit by writing a check, not by charging with a card. Interest is charged as soon as you use the funds. It can be like a personal loan.

Are loans for real estate. When you buy a home or second home, visit the Navy Federal Mortgage Center online for more information about this type of loan.