Using Credit Wisely

Difference between Credit and Debit

Debit cards take the money directly from your account when you buy an item, whereas Credit cards add up the money that you will have to pay in the future.

How to Develop a Positive Credit History

  • you need to demonstrate stability; show that you make payments on time
  • you need to have a good mixture of credit types
  • keep your balances way below your credit card limits

Advantages vs. Disadvantages


  • Having a credit card makes it easier to purchase things.
  • Also having a credit card and treating it right you can have a good credit history; which is very important.
  • Credit cards are often very useful in times of emergencies.


  • Most credit companies encourage people to spend the money that they don't have and pay it back later, which ends up being way more that they have to pay because they tack on interest.
  • There's always a chance that your credit card could be stolen and used by someone else.
  • If you use credit cards wrongly they can hurt your credit history.

What Is APR?

The annual percentage rate (APR) is the amount of interest on your total loan that you will pay annually. It is important to know while signing up for a credit card because the amount of APR that is associated with the total amount of money that you will pay extra annually. In the long run, APR adds to the amount of money that you pay for an object. Let's say that you want to buy a new car and the one that you're looking at is $15,680. Also, let's say that you can't pay all of this money up front but you can afford to pay $250 a month. So you lay it out and you pay for your new car over 190 months at a rate of $250 per month. By the time you pay off your car, you will have paid $31,786.37. So instead of really paying $15,680 for your new car, with APR you pay $47,466.37.

When & Where Can You Get A Credit Report?

You can get a credit report every 12 months from each credit reporting company for free. Obtaining a credit report once every 12 months is very important. Credit reports may affect mortgage rates, credit card approvals, apartment requests, and even your job applications. If you happen to find an error on your credit report you need to contact both the company that gave you the information and the credit reporting company.

What Should A Borrower Do If They Get Into Financial Difficulties?

The borrower should talk to the lender before skipping a payment. While the borrower trying to make it on their own, they also need to ask a family member for a little extra help and support. Also, if a borrower gets into some trouble they could contact