Using Credit Wisely

August Bevard

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The difference between credit and debit is credit cards are not linked to your current account and you pay it off later. Debit cards take funds directly from your account and you pay when you use it.

If you're trying to build a positive credit history, set a budget and try to stick to it. Paying bills on time and keeping balances well below the credit limits.

Some apps and websites that will help manage your credit are listed below. Helps with budgeting

GoodBudget: Create a budget off of personal cash flow

Mvelopes: Budgeting anywhere you go.

BillGaurd: This will help you see what you've bought and protect from fraud.

Pocket Expense: tracks your spending so you can create budgets easier.

About Credit Cards

Credit cards are very convenient to use and can be very helpful in some situations. When you get your statement, you can see what you've bought and can track and manage it. Also, if you ever have a problem, most credit card companies will protect you from disputes and try and handle them. Even though credit cards have a lot of advantages, there is also a bad side. If you don't pay off a purchase you made in time, you can be charged a lot of money. Or even worse, if you don't pay for your home mortgage, you could lose the house because banks have the right to take away anything you've bought with their card. Not to mention how hard it is to not buy a new outfit or pair of shoes when you have so much money on the card. APR is an important thing to know because it determines your finance charges if you don't pay off any recent purchases. If the payment is late, you will be paying more than before.
Say you are buying your first car for $1500. If your APR is 18% and you pay $85 a month, it will be payed off in 21 months. On the last month, it will only cost $55.45. Also the total finance charge or the money you pay toward interest is $255.45. Credit can add up a lot of extra money that you will need to pay off later.
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How to Get a Free Credit Report

One way you can get a credit report is by contacting 877-FACTACT.

A different way is to go to

Or you can get one once every 12 months from each credit reporting agency.

Your credit report shows your financial behavior and identification information. Getting a credit report lets you see what lenders see when they look at your info. If you were to run into an error on your report, contact both the credit reporting company and the company that provided the information.