How To Credit Wisely

Your credit guide

Difference between a credit and debit card

Credit Card- A credit card is a card used to buy products with borrowed money and to pay back at a later time.

Debit Card- When something is bought with a debit card, the money comes directly out of your bank account.

Three ways to develop positive credit history

  1. Only borrow what you can afford. If the money you have in your checking account isn't enough to pay for an item with credit, DON'T BUY IT.
  2. Start with one card, having many looks bad on your credit history. Keep it simple.
  3. Don't be late on payments! If it is seen that your continuously paying late payments monthly, people will be weary to allow you to get a loan or credit card.

Companies to Help You Out

Sometimes people just can't do it alone. That's where companies like Wealthfront step in to help. Wealthfront is there to help you invest money where it's needed. Helping you organize your money and start down the right track.
Popmoney is another helpful resource. This however isn't an investment company, they focus on money transfers. Even though they do charge for services, it promises a safe and secure transfer as well as person to person.
Mint is a free budgeting service that securely helps you to keep track and budget accordingly. They provide many different options to create what best fits your needs. The site has a simple display and is easy to use.
Prosper is a loan marketplace. Although they do charge a low rate, you can be assured that there are no hidden fees. They also offer peer to peer lending.
Venmo is a free online payment site. It is easy and fast as well as guaranteed secure. Perfect for when you're in a hurry and need to send a quick payment online.

Advantages and Disadvantages

Ever wondered what makes credit so difficult? Wondering if a good credit score is worth the troubles? Here are some disadvantages and advantages of credit use.

Advantages:


  • Easy to purchase big but needed items. Like a car or house.
  • Protection on purchases if they're stolen or ruined.
  • Credit card benefits such as special offers and discounts on some stores.



Disadvantages:


  • High interest rate ultimately makes you end up paying more for a product than if you would've paid out of pocket originally.
  • Easy to spend your entire budget.
  • Credit fraud as cards can be stolen and then used by others.

What's APR?

APR stands for Annual Percentage Rate. This goes along with disadvantages of credit. This is a percent that's set as a representation of the yearly cost of a loan.
Example:
Lets say I wanted to buy a high quality canon camera. The price of the camera in stores is 3,000$. If the APR is set to 18% and I wanted to pay 75$ monthly, the total cost in the end with the added APR is 4,615.73$.

Credit Score

Credit scores are provided to people free once a year through credit score agencies. If any mistakes are found you should contact a credit reporting agency as soon as possible.

Troubles for borrowers

If a borrower experiences problems they can contact a credit counselling agency.


NFCC info provided below:

Contact:800.388.2227

Website: www.nfcc.org