Financial Management

What is the difference between a credit card and a debt card?

A credit card uses money that you have to pay off in the future or builds up debt. A debit card takes money out of your bank account or money that you have.

Three ways you can develop a positive credit history

  1. Only borrow what you can afford
  2. Pay your credit card balance at once and on time
  3. Use only the small amount of credit you have available

Five different financial apps and/or websites that help people manage their money

  1. mint.com
  2. Learnvest
  3. sigfig
  4. Betterment
  5. FutureAdvisor
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Three advantages and three disadvantages of using credit

Advantages:

  1. Easy purchases
  2. Protected purchases
  3. Can be helpful in case of emergency


Disadvantages:

  1. Blowing your budget
  2. Credit Card Fraud
  3. Increased debt

What is APR and why is it important when applying for a credit card?

APR stands for Annual Percentage Rate is the amount of interest you have to pay annually

and you end up paying more money in the long run when using a loan than when you would pay up front due to the APR and it is important when applying for a credit card because if a company doesn't charge any APR the first 12 months or so you can save a lot of money.


http://www.practicalmoneyskills.com/calculators/calculate/costOfCredit.php?calcCategory=debt

When and where can you get a free credit report and why is it important?

You can get a free credit report every 12 months at annualcreditreport.com and it is important because mortgage lenders, banks, utility companies, prospective employees and more. If you find errors in your credit report you should dispute the error with your credit card company
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What should a borrower if they are experiencing financial difficulties?

A borrower should contact their credit card company and contact a debt consolidation service or credit counseling service. A credit card company that someone could contact is Apprisen.