Using Credit Wisely

By: Victoria Coward

Difference between a credit card and a debit card

Credit cards give you option to have money now, and pay later. But, there is risk that comes with it if credit card bills are not paid off in time. Debit cards take money directly out of a checking account.

Ways to develop a positive credit history

  1. Always pay off your entire balance
  2. Always make payments on time
  3. Avoid applying for too many new credit accounts and loans

Financial apps and websites that help you manage your money

Advantages and Disadvantages of using credit


  • It is convenient, it can put cash in your hand when you need it.
  • Record keeping; Credit card statements help you keep up with your expenses.
  • Build positive credit.

  • You can spend more than you can pay off.
  • High cost fees if bills are not paid off in time.
  • It can increase your debt

When and Where you can get a free credit report. ; Once a year you are capable of getting a free credit report and it is important because it can help you keep track of your transaction and current score. If you find errors in your credit report, report it to the credit company.

Credit Counseling agencies

The NFCC helps you by having a counselor meet up with you individually and determine the best options to meet with your individual needs. They also develop a personalized plan to help you prevent future difficulties.

Call 800-388-2227 800.355.2227800.355.2227

APR and its importance when applying for credit cards

APR is the Average Percentage Rate. It is important to know the APR when applying for a credit card so you will know just how much you will be spending in interest by using a companies credit card. For example, if you are using credit with 18% APR and paying the minimum of $50 a month, trying to pay off $500, will actually cost 545.78.