Using Credit Wisely

Keagan Holt

What is the difference between credit cards and debit cards?

Credit Cards- When using these, you ares simply borrowing the banks money. Then at the end of the month you must pay that amount back plus interest.

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.


An APR is the amount of interest you pay annually. Your APR increases the total cost of an item over time

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.

Credit Reports

You can order a free credit report once a year over the internet. If you find any mistakes on the report you call or email the company that issued it.

What to do if you are experiencing financial trouble

I you are experiencing financial trouble LET THE COMPANY KNOW! Whether you call or email them they will try to help you.

You can also call a financial counseling agency.

Here is one you can use: 0Debt Goal Inc.