Using Credit Wisely
This is a very widely used financial app. It gives you a real time look into all of your finances. It also automatically tracks your spending which can help you with budgeting etc.
This app is connected to your bank account and uses your income to suggest your daily, weekly, and even monthly spending.
This app analyzes your income and savings and takes small amounts from the account that it determines you wont use and puts it into account that you can with drawl from at anytime. Basically it saves money you never would have used anyway.
This app offers free credit scores in addition to monitoring your spending to offer you good loan options.
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This app records your spending and tracks all of your expenditures so you can look at your daily, weekly, and monthly spending and organize them as best as possible
What is the difference between credit cards and debit cards?
Debit Cards- Debit cards are connected directly to your checking account. This means that you are taking money directly from your account, this means you don't have to pay interest!
How to develop a good credit history!
- Pay your bills on time- Frequently paying your bills late can lower your credit score drastically.
- Don't apply for a bunch of credit cards in a short period of time- this lowers your score as well. Try to build credit history responsibly, over a period of time.
- Use as little credit available as possible- The less you use the credit the better your score will be. Simple as that!
What are the advantages/disadvantages of using credit?
- Immediate Access- It helps pay for unexpected expenses with the option to pay over time
- Security- Credit cards can easily be cancelled if lost, while money is lost forever.
- Convenience- Credit Cards are accepted almost anywhere including online.
- Interest- interest takes a long time to pay off and if you don't pay it back on time it can potentially hurt your credit score.
- Blowing Your Budget- Credit makes it way too easy to spend way more than you can afford
- Fraud- Having a credit card could open you up to having your credit stolen which can potentially ruin somebody's life.
Example: Say you wan to buy an Xbox One with a credit card. Total Cost of Xbox: $350
APR for the card you are using: 18%
Minimum Monthly Payment: $50
It would cost you $372.54 over 8 months to pay for the Xbox.
What to do if you are experiencing financial trouble
You can also call a financial counseling agency.
Here is one you can use: 0Debt Goal Inc.