Using credit wisely

Financial Management

Tyranny Hawkins 5/1/16

1. Credit card is a run up an amount of money that you will owe in the future, a balance that you will be required to pay back at a later date.

Debit card is purchases deduct money from your current account this is from funds that you already have available.


2. There are many ways to develop good or positive credit history like paying your bills on time, apply only for credit cards you need and making sure if you get a credit card you actually will use it and pay it on time. Having a mixture of credit types is also good because this shows that you can pay other credit cards on time as well.


3. Betterment- this improves something and makes it better, improvement in financial betterment, improvement that increases the property value, the act of bettering and this could help you sell your house in the future.

Mint- is a very large amount of money, is in perfect condition, this can invent and fabricate, where coins of a country are manufacture by authority of government and you can make things better by using this.

Dwolla- this is used to move money, this has good security, people will help you if you have any questions, there are no transaction fees and this is a reliable system.

FutureAdviser- this account helps you reach your goal sooner, license advisers and service specialists will always help you, review your portfolio daily for tax saving opportunities, flexibility investment is maximized and this is a good system that can help you up tain your goals.

Popmoney- this helps you send money securely and get money fast, money moves directly from bank account to bank account, receiving money is easy all you need to have is a bank account, email or mobile number, it tells you exactly how much money it would cost to transact something and this helps you send money safely and sufficiently.'


4. Three advantages of using credit- purchase power and ease of purchase this is when credit cards makes it easier to buy things, protection of purchases is when credit cards may also offer you additional protection if something you have bought is lost, damaged, or stolen, building a credit line helps you by getting a good credit history and this is important like applying for credit cards, loans, rental applications and or even some jobs.

Three disadvantages of using credit- blowing your budget a credit card encourages people to spend more money then they have, high interest rates and increased debt is when credit card companies charge you an enormous amount of interest on each money that you don't pay off at the end of each month, this is how they make there money and how most people get into debt, credit card fraud is when cash and credit cards can be stolen, this can be physically stolen and stolen by getting your credit card number, people can use your credit card and stack up debt.


5. APR- Annual percentage rate, this is important to know when applying for credit because this represents the total cost of credit, including fees, expressed as an annual rate. If my total purchase amount for something is 100 dollars, I will pay 18% interest and $50 a month to pay it off. It would take me a total of 3 months to pay this off, the final months payment which is the last payment on this account would be $2.29, the total finance charge, which is the total amount of money you have payed toward interest would be $2.29 and the total cost would be $102.29.


6. You can order a free credit report from http://www.annualcreditreport.com/ , you can get this anytime and this is important because a credit report is a summary of your financial history, credit reporters and lenders check your credit report to decide whether or not to extend your credit and at what rates. Your credit report is also an important tool to manage as well because creditors and lenders use the information in it, such as your payment history and the number of active credit accounts so, they can evaluate your credit worthiness. If you find errors on your credit report you should contact the credit reporting agency regarding their dispute resolution process.


7. This is a credit report agency that I found ConsumerCredit.com, http://www.consumercredit.com/ohio.aspx and they can help you with financial difficulties by offering a debt management plan to qualified individuals and also by financial counseling and budget consultation are free of charge and callers are under no obligation. The number to this credit report agency is 800- 769- 3571.


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