Using Credit Wisely


Credit cards vs. Debit cards

Debit cards- draw money directly from checking account when you make a purchase. There is a hold on the amount of the purchase.

Credit cards- Allows you to borrow money in small amounts for purchases. It's used for basic transactions. Companies Charge interest on each purchase.

3 Ways to Develop a Positive Credit History

  1. The first step get positive credit is to make a budget and live within the budget. By doing this you wont over spend on items. Also limits the amount the credit you'll have because you don't want too much credit.
  2. Best way is to make all your payments on time. According to FICO 35% of your score is based on your payment history. Making late payments hurt your way to positive credit history.
  3. Final way is to apply for a secure credit card. A secured credit works like a regular credit card. Instead you place a security deposit with the credit card issuer to get it.

5 Different Websites and Apps to Mange Money

  1. It's a free app and website that helps manage your earnings, savings, and budgeting. It syncs all bank accounts and mutual funds to you IRA or 401
  2. It does these 3 things, it tracks your account(keep track of your checking, investment, savings, and even PayPal) , track spending, and schedule income.
  3. HomeBudget- it cost $4.99 on IOS $5.99 on android it's easy to navigate it. It shows expenses, bills, income, budget, and accounts and the dollar amounts.
  4. Expensify_ it's a free app on all devices.It's easy to navigate screen has four buttons, SmartScan, Add Expense, Track Time, and Track Distance.
  5. Money Lover- It's a free app for all devices.It helps you understand where your money goes, so you can plan to spend more effectively.

Advantages and Disadvantages of Credit


  1. Easy Purchases- Credit cards make it easier to buy things
  2. Protection of Purchases- Credit cards offers protection if something you have bought is lost, stolen, or damaged.
  3. Emergencies- When you don't have the cash on you credit cards can be useful

  1. Credit Card Frauds- Credit cards can be stolen just as easy cash can
  2. Credit Card Frauds (pt 2)- Credit can be stolen online
  3. High Interest Rates- Credit card companies charge you an enormous amount of interest on each balance that you don't pay off at the end of each month.

What is APR

APR- is the annual percentage rate and is the annual cost of borrowing. APR includes all cost, interest rate, effects of compounding, and any administrative or origination fees. It important because can be used to compare various offers between lenders to figure out which loan terms are best.

When and where can you order a free credit report

The FCRA or the fair credit reporting act requires each of the nationwide credit reporting companies Equifax, Experian, and TransUnion to provide you with a free copy of your credit report whenever you want once every 12 months.

When there is an error on your report you need to contact the credit bureau that is showing the information.

Credit Counseling Agency

  • Advise you on managing your money;
  • Offer solutions to your current financial problems; and
  • Develop a personalized plan to help you prevent future difficulties.


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