Using Credit Wisely

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

The difference between a credit card and a debit card is that with a debit card, when something is bought, money is pulled straight from the bank account that the card is assigned. A credit card is a card used for largely priced things, when used, the creditor pays it off. Then you must pay the creditor monthly until the object is paid off, plus interest.

Three ways to develop a positive credit history are...

1. Paying over the minimum amount each month for cost the of the object.

2. Continually paying monthly and not missing a payment date.

3. Not opening several credit card accounts if you're unable to pay them off.

5 financial apps that can help manage your money:

Advantages of Credit

1. Credit allows consumers to buy larger priced necessities, even if they don't have the amount on hand.

2. Credit is easy to pay off if paid correctly.

3. Using credit correctly can bring your credit score up, letting you use more credit on items you'd like to buy.

Disadvantages of Credit

1. If a credit user misses a monthly payment for credit, their fees will add up, causing them to pay more.

2. Paying the minimum monthly payment can lead to bad credit, always pay over the minimum!

3. If a credit user continues to miss payments, their creditor will lose trust and perhaps close the account.


APR is the Annual Percentage Rate. This is how much interest you pay yearly for your credit card, usually users pick the smallest APR credit card. APR is important to know so you can pick the right credit card for you that you won't have to pay too much for.

click the link to test total amounts of payments with apr added.

Here's an example

I want to buy a $350 xbox bundle from Best Buy. Enter the total amount of your desired item into the Total Purchase Amount. My credit card calls for 18% interest, which I enter into the APR box. And I must pay at least $50 a month. I want to pay $55 a month, which I enter into the Planned Monthly Payment box. Then I click calculate and it gives me all the information I need.
Financial difficulties?

Click here to be sent to a credit counseling agency website that may be able to help with your situation.