Using Credit Wisely
Mastering the Monster
What's credit and debit?
In order to develop a positive credit history, make sure you...
- Make payments on time
- Avoid excessive credit use
- Restrain from opening multiple new credit cards at the same time
Financial apps and websites are available to help you in the financial realm: Betterment (financial advisor), Mint (budgeting), SigFig (financial advisor), Simple (accounting), LearnVest (financial planning), etc...
Advantages & Disadvantages of Credit Cards:
- Adv: Convenient
- Adv: Useful in emergencies
- Adv: Purchase more expensive items
- Dis: May have to pay interest
- Dis: Easy to overspend
- Dis: Identity theft is possible
The annual percentage rate is the amount of interest you will pay annually. The lower the APR, the lower your monthly payments will be. If an item costs $400 and your APR is 18%, then you will pay a total of $429.30 in 9 months, the extra $29.30 being the interest.