USING CREDIT WISELY

Information

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Three ways you can develop a positive credit history


  1. Only borrow what you can afford
  2. Make all your payments on time
  3. Pay your credit card balance in full

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

debit card purchases deduct money from your current account. from funds that you already have available and making purchases on various credit card types is slightly different. Credit cards 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.

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


Betterment

The Betterment portfolio is designed to achieve optimal returns at every level of risk. Through diversification, automated rebalancing, better behavior, and lower fees, Betterment customers can expect 4.30% higher returns than a typical DIY investor.

Mint

See all your balances and transactions together. Mint automatically pulls all your financial information into one place, so you can finally get the entire picture.

Dwolla

Our digital payment network securely connects with U.S. banks and credit unions to enable safe, fast, account-to-account transfers

FutureAdvisor

Retirement, college savings, your dream house. Whatever your investment goals are, we can help get you there sooner.

InDinero

inDinero is your entire back office. We take care of your accounting and file your corporate tax returns. Focus on what matters most, and leave the rest to inDinero.

Three advantages and three disadvantages of using credit.

Advantages

Convenience--Credit cards can save you time and trouble--no searching for an ATM or keeping cash on-hand.

Record keeping--Credit card statements can help you track your expenses. Some cards even provide year-end summaries that really help out at tax time.

Low-cost loans--You can use revolving credit to save today (e.g., at a one-day sale), when available cash is a week away.


Disadvantages


Overuse--Revolving credit makes it easy to spend beyond your means.


Paperwork--You'll need to save your receipts and check them against your statement each month. This is a good way to ensure that you haven't been overcharged.


High-cost fees--Your purchase will suddenly become much more expensive if you carry a balance or miss a payment.


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

An Annual Percentage Rate (APR) is the yearly rate of interest on your credit card. This is important because most credit cards involve several different APRs.Different APRs also may apply to different types of transactions.

Example: See picture for Wii U $369.99for 18% with paying $50 a month.

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When and where can you order a free credit report? Why is it important?


  • Get a free copy of your credit report every 12 months from each credit reporting company.
  • It's important because Ensure that the information on all of your credit reports is correct and up to date. Also, your credit report is a detailed look at your credit habits, the types of debt you have outstanding, and is the basis for your credit score. Simply put, it's a picture of your credit.

What should a borrower do if they are experiencing financial difficulties?

Financial difficulty can be caused by unemployment, underemployment, disability, illness and injury. There are, however, many approaches to addressing the financial difficulty and a barrower should talk to the lender before deciding to skip a payment. Lenders tend to be more flexible with borrowers who contact them first. Borrowers lose options if they default first. Ignoring the problem will not make it go away. It will only get worse.

A non-profit credit counselor, such as those certified by the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA), might also be able to help.