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:
Mint
Mint is one of the most widely used financial apps. It gives a full view of all of your finances from your credit card accounts, bank accounts, and even 401k and student loans. It is a very simple and organized app.
Level Money
Level Money is known as a "mobile money meter". Once your bank account is connected to the app, it has your income listed and shows how you should budget your money for the month. It lists your recent transactions as well as billing information to see what you've been spending on.
Digit
Digit is an app that, once connected to your bank account, takes a small amount from your account that it figures you won't use, and transfers it to a savings account that is managed by them. They help to save your money that may not be used. You may withdraw from the account whenever needed.
Credit Karma
Credit Karma offers free credit reports and scores. This app allows users to program their bank accounts and credit account and view their spending patterns. It offers better credit card or loan offers that can help improve users' finances.
Wally
With Wally, viewing daily, weekly, or monthly payments is simple, and allows you to divide expenses into separate categories. The best part, you can scan your receipts, and the app will automatically input the details or your transaction.
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.
WHAT IS APR?
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.