Using Credit Wisely

A credit card vs a debit card

  • A credit card you use to buy things using borrowed money from your bank and you have to pay it back.
  • A debit card is a card you use to buy things with money that you already have in your bank.


Developing Credit

Three ways to develop good credit

  1. Always pay bills on time
  2. Keep a job
  3. Get a credit card reference

Tools to help you manage your money

  1. Mint budgeting app - You connect the Mint app to your bank and the app can use your details to help create a personalized budget.
  2. Pocketguard budget - the Pocketguard budget app connects directly to your bank accounts so that you can always have access to your current transactions and balance
  3. GoodBudget - Goodbudget is a digital envelope budget system that helps you manage your finances using the envelope budgeting method without carrying around a stack of envelopes when you need to make payments.
  4. Mvelopes - Mvelopes is another excellent budgeting app to help you get a hold of your finances in 2016. You can link your bank account to this app to make it work and it is another digital envelope budget method app that can help you stay on track.
  5. Wallet - Wallet is a budgeting app that is basically a beautiful expense tracker for individuals. Just like you might track expenses for a work trip, you can do that for your personal budget with Wally.

Advantages and Disadvantages of credit


  • Emergencies
  • Protection of purchases
  • Building good credit

  • Blowing your budget
  • High interest rates
  • Credit card fruad


APR stands for annual percentage rates.It is the amount of interest on your total loan amount that you'll pay annually. This important to know so you know that when you take out a loan, you know that you will owe more than what you took out and can afford it.

If you take a loan out of 1500$, with a 18% interest rate and you decide to pay 75$ month. The total amount you will pay is 1,796.72

Getting A Free Credit Report

You are entitled to get a free credit report once a year from Equifax, Experian, or TransUnion. This is important to know because this is what employers, money lenders, and utility companies look at. If you find an error you need to contact the credit bureau and get it fixed or it will hurt your credit score.

Counseling Agencies

Here is a good example of a credit counseling agency -

Alpha Community Services
121 West Water Street, Suite D
Sandusky, OH 44870
The non-profit organization can be reached at 419-626-1450. Additional offices of this free credit counseling organization are below. Counselors will discuss the clients overall financial situation and take a holistic approach to helping them reduce their credit card debts, lower the interest rates on any loans they have, and enroll individuals in programs such as Debt Management Plans.