Using Credit Wisely

The difference between credit and debit

The main difference between debit and credit is that a credit card you are using BORROWED money. With a debit card you are using money in your bank account and can only use as much as you have.

Positive ways to build credit

A way to build credit is to always be up to date with payments and always pay on time. Do not open up a lot of credit accounts in a short period of time. Also do not close old accounts that you do not use anymore.

5 different money management sites/apps

MoneyManagement.org - Helps you make a proper budget and helps you make a plan to pay off debts.

BlananceCheck.org - It can help you set goals for yourself and can track your spending.

BankRate.com - Has automative saving plans sets plans for different living

Mint.com - An app that you can put your money in and it sets a budget for you and manages everything.

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Pros and Cons of using credit

Pros - Able to use in emergencies like medical bills

Building credit for the future

Allows you to get a car or home for a cheaper payment


Cons - Not paying bills could lower your credit

Impulse buying

Over spending on things thinking you have money

What is APR?

APR (Annual Percentage Rate) is the amount of interest your loan or card will have when making a purchase. When getting a card or a loan you should really get the lowest APR as possible. The reason is because you will pay less money over time.

How much it would cost with an 18% APR

Say you wanted to buy a new TV that is $3999.99 and you make a monthly minimum payment of $100 a month with a 18% interest. It would take you 62 months to pay off this payment. You will pay an additional $2154.29 just from your APR and your total cost will be $6,154.28

When and where can you get a free credit report?

You are entitled to get a credit report every 12 month for free. You can request for it online at annualcreditreport.com. This is important to know because if you have bad credit you are not going to be able to buy things for cheaper. Also you will find out issues with your bill and could call your credit company and fix issues to possibly raise your credit score.

Having financial issues?

You could find a credit counselor to help you with your issues at NFCC.com. They have many buildings around the U.S., especially in Ohio, you can go and visit for help. They can help you on managing your money to pay your bills properly and offer solutions on your issues.
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