How To Use Credit Wisley

Financial Management

Differences Between Credit And Debit

Credit- With a credit care you are borrowing money from a company. You have to make monthly payments that include interest rates that you have to pay for using their money. If you make any late payments you can get charged fees and have to pay more to the company. Most cards have a credit limit and you can only spend a certain amount of money with the card or you will have to pay more fees.


Debit- A debit card is a card that is linked directly to your bank account. When you use the card it takes the money directly from your bank account. A debit card is like having all of your money in one card.

Mint Financial App

This is an app will help you will all aspects of managing your money wisely. You can see and manage all of your money in one place with the help of a financial adviser.

Dwolla Financial App

This app is mainly focused towards making payments. It moves your money safely and quickly and is connected will U.S. banks and credit unions.

PopMoney Financial App

This app helps with sending, receiving, and requesting money. You can safely send money, transfer money between your bank accounts, and request money.

Square Financial App

This app allows you to pay with credit cards on many devices. You plus it into devices such as phone, tablets, and computers and you can pay with a credit care. It works for all business and is fast.

LearnVest Financial App

This app is for helping you with financial planning. With this you will receive a dedicated financial planners, a custom financial plan, and real people to help you 24/7.

Developing Positive Credit History

1.Make all your monthly payments on time. If you are even 1 minute late on your payment you will have to pay fees and your interest rate will go up. Late payments will negatively affect your credit score.


2. Avoid going over your credit limit. If you go over your credit limit you are spending more money then they are giving you causing more fees, This will also affect your credit score negatively.


3. Have a mixture of credit. Having different forms of credit such as loans and cards will help your credit score.

Advantages of Credit

Instant Money- With a credit card you have money right there all the time. You can use this money to buy almost anything


Record Keeping- Credit cards can help you keep track of your past purchases and expenses.


Cash Advances- Cash advances can put money in your hands right when you need it, whenever you need it.

Disadvantages of credit

Interest Rates- Most credit card company's have a high interest rates. This means that on top of pay back the credit you used, you have to pay the company for using the credit.


Payments- Purchasing even a shirt will take you months, sometimes even years to pay off. If you pay the monthly minimum will most likely take a very long time to pay off even small purchases.


Fees- Credit card company's will try to fee you for what ever they can. If you are late on a payment, they will fee you and make your interest rate go up causing you to pay even more each month.

APR

APR stands for you annual percentage rate. This tells you how much interest you will have to pay annually. You can also use this number to figure out how much interest you will have to pay monthly. The APR will make paying off a purchase much more difficult seeing as it causing your bill to go up. The APR is added onto your monthly bill making you pay more for every purchase. Even the smallest of purchases can end up taking long periods of time to pay off. Here is an example of APR below:


Cost of Item- $500

Credit Card APR- 18%

Planned Monthly Payment- $50


Number of months to pay off- 11

Total APR charge- $45.78

Total Cost of Item- $545.78

Free Credit Report

To get our free credit report you can order it from Trans Union, Equafax, or Experian. All of these companies will give you 1 free copy of your credit score per year. It is important to know your credit score because it determines a lot in your life. If you have a bad credit score you may not be able to get a loan, rent an apartment, or make any big purchases. Your credit score follows you around your whole life. If you notice an error in your credit report you should contact the credit report company immediately. If you do not get the error resolved it could affect you for the rest of your life.

Financial Difficulties

If you are in trouble financially with debt there are options for you to help yourself. Before you decide to file bankruptcy or get in trouble with creditor, you should try and get help. For some people they find it best to resolve their problems on their own but there are places you can get help. There are many non-profit agency's that will help you set up a plan to pay off your debt for free. These can be very helpful in your journey to a credit and debt free life. For a list of these organizations you can call 1-800-388-2227.