USING CREDIT WISELY

using credit the right way ;)

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

Whilst debit purchases deduct money from your current account - from funds that you already have available – making purchases on various credit card types is slightly different. Credit cards run up an amount of money that you will owe in the future, a balance that you will be required to pay back at a later date.

3 ways you can develop a positive credit history!!!

1. Set up a budget you can live with!

2. PAY BILLS ON TIME!!!!!!!!!!!!

3. Apply for credit that you need! Ex: Car loans, house loans, student loans

5 websites that can help you with managing your money!

Mint.com---you can upload your account information and get immediate insight into where your money is going

Wesabe.com---also allows users to track where their money is going by uploading account information and reveals how their spending habits compare with others on the site

Geezeo.com---offers its money management tools through banks and credit unions

Yodlee.com---also works with financial institutions to reach customers interested in online money management

Pennyminder--- is ideal for families with multiple spenders because it allows users to see other family members' spending and jointly manage a household budget

3 advantages and disadvantages of credit!!!

ADVANTAGES: Building a Credit Line - Having a good credit history is often important, not only when applying for credit cards, but also when applying for things such as loans, rental applications, or even some jobs.

Emergencies - Credit cards can also be useful in times of emergency. While you should avoid spending outside your budget

Purchase Power and Ease of Purchase - Credit cards can make it easier to buy things. If you don't like to carry large amounts of cash with you or if a company doesn't accept cash purchases

DISADVANTAGES: Blowing Your Budget - The biggest disadvantage of credit cards is that they encourage people to spend money that they don't have.

High Interest Rates and Increased Debt -- Credit card companies charge you an enormous amount of interest on each balance that you don't pay off at the end of each month. This is how they make their money and this is how most people in the United States get into debt.

Credit Card Fraud - Like cash, sometimes credit cards can be stolen. They may be physically stolen (if you lose your wallet) or someone may steal your credit card number (from a receipt, over the phone, or from a Web site) and use your card to rack up debts.

Annual Percentage Rates and why theyre important to know when applying for a credit card

The annual percentage rate is the amount of interest on your total loan amount that you'll pay annually (averaged over the full term of the loan). Theyre important because each company differs rates and the interest rates can make you pay a lot more and be very alarming once the item is paid



Example:




Total purchase amount

$ 299.99






Credit card APR---15%





Planned monthly payment

$35



Final price=$319.29

Free credit report

Federal law says you're entitled to a free credit report from each of the three majorcredit reporting agencies — Equifax, Experian and TransUnion — once every 12 months. There are three ways to get your free annual credit reports: Request them online at AnnualCreditReport.com.


If you find an error on your credit report you should immediately contact the credit bureau and notify them of the error because this can affect your credit score in a bad way.

CREDIT COUNSELING AGENCY

Apprisen is a counseling agency located in ohio, they offer help with not only money, but many other comprehensive programs and have been around 60 years. They have plenty of experience to get you back on track with your money.


Apprisen contact info--- 800-355-2227

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