USE YOUR CREDIT WISELY
By: Brooklynn Dillon
Credit Card VS. Debit Card
- A debit card is all your money and can only use the money you have. A credit card is one that you use then you pay off later.
Three Ways To Develop a Positive Credit History
- Hold a steady job
- Own a house
- Pay all credit card bills in full and on time
Advantages of Using Credit
- Useful for emergencies
- Purchase expensive items earlier
Disadvantages of Using Credit
- Paying interest if balance is kept on card
- Tempting to overspend
- Risk of identity theft
- APR is your Annual Percentage Rate.
- The lower the APR the better for the cardholder!
- If you buy a car that costs $20,599 and your APR is 18%, and monthly you pay $325. Then, when you finally pay it off your total cost would be $65,711.11.
Free Credit Reports
- You can order a free credit report by requesting one from a nationwide agency.
- You should get a report at least once a year to make sure there are no errors.
- If there are errors, you should go to the FTC website, http://www.ftc.gov/, and go to the "How to Dispute Credit Report Errors".
Credit Counseling Agencies
- The NFCC is a credit counseling agency.
- If you are experiencing financial difficulties they will Advise you on managing your money; Offer solutions to your current financial problems; and Develop a personalized plan to help you prevent future difficulties.
- In Ohio there is the Consumer Credit Counseling Services
- address- 5555 Renner Rd, Columbus, OH 43228
- phone- (614) 552-2222