Using Credit Wisely

Miranda Hrytzik

Debit and Credit Cards

Debit Cards - A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

Credit Cards - A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.

How to Develop Positive Credit History

  1. Pay every bill on time - When paid on time, you look more responsible with your money and create better credit because of that responsibility
  2. Let accounts age - Don't cancel any accounts, as that hurts your credit. Merely let them sit there, unused, and make your credit history even better
  3. Only use the card for what you can afford - Don't buy something you know you can't pay for, because paying each bill in full and on time shows off your responsibility, and buying an excessive amount of things will hurt your credit

Financial Apps and Websites

Investopedia - Their financial dictionary is easy to use and understand, and helps you to figure out if you probably need something or not.

Kiplinger - Offers a broad range of topics about money and is a fun way of gaining knowledge about money.

Wise Bread - A way to learn about saving money from lots of different people, not just experts. People share their own experiences and tips.

NerdWallet - You can compare things like credit and debit cards, mortgages, investment accounts, etc.

Quora - It does require you to make an account, but it helps when struggling with a money issue; you can search Quora to see if anyone else has experienced the same issue and if they provided a solution.

Advantages and Disadvantages of Credit


  1. Credit cards can save time and trouble
  2. It's easy to pay for something expensive and not have to walk in with a large amount of cash
  3. You can pay for things that you don't have the money for at that moment


  1. You could overspend and be left to pay for something you can't afford
  2. It's easy for someone to steal credit card numbers if you aren't careful, and the thief could spend a lot more than had they stolen some cash
  3. High interest rates make you pay even more than you already had to


Annual Percentage Rate

How expensive a transaction will be on each credit card, and can be compared when applying for a new credit card so you know which has the best deal. Banks use a formula to determine how much interest you have to pay on your outstanding balance.

Cost of Credit Calculator

Imagine wanting something that is three hundred dollars. With eighteen percent interest and a monthly payment plan of fifty dollars, it would take seven months to pay off, and you would end up paying $316.72 instead of just the original three hundred. That may not seem like much more, but the more expensive the item and the less you pay each month, the more you end up spending overall.

Credit Reports

When can you get a free credit report?

You can get one free credit report every twelve months from each of the three major credit bureaus, TransUnion, Equifax, and Experian.

Why is it important to check your credit report?

So you know that no frauds have been using your cards and everything is being accurately reported.

What if errors are found on the credit report?

Write a letter disputing the errors and sending it to a credit reporting agency or your information provider.

Financial Difficulties

If a borrower is experiencing financial difficulties, don't sweat it. Apply for new, better paying jobs, keep paying off those bills even if it feels like they're strangling you, do what you can to retain any good credit you have. Everything will probably work out eventually.

And try this site for help