Using Credit Wisely

By Lindsay Hunter

What is the difference between a credit card and a debit card?

A credit card is borrowed money and a debit card takes money straight from your bank checking account.

Describe three ways you can develop a positive credit history.

Pay bills on time, stay under the credit limit, obtain a credit card.

Give a descGive a description of five different financial apps and/or websites that help people manage their money

Saved plus, LikeFolio, Wallaby, FutureAdvisor, Simple.

Explain three advantages and three disadvantages of using credit.

Ability to buy a house and/or car, an advance for applying for a job, a better chance to obtain a loan.

High interest rates, fees and penalties, high amount of debt.

What is APR and why is it important to know when applying for a credit card?

Annual Percentage Rate, it determines how much more you pay a year.

When and where can you order a free credit report? Why is it important?

Online anytime, you need to make sure that there are no errors or mistakes on your report.

What should a borrower do if they are experiencing financial difficulties?

Check with a professional and discuss possibilities of financial help.
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