How To Use Credit Wisely

Efficient Ways To Use Credit

How Are Credit And Debit Cards Different?

There is a HUGE difference between credit cards and debit cards. With debit cards, you use them when you are buying things, and after you use them, money gets taken from one of your bank accounts that you already have money in, and that goes to the store. With credit cards, you use them to buy things but instead of the money coming out of an account that you already have with a bank, it gets charged to the card, so at the end of the month, you have to pay for the your purchase then. It is a buy now, spend later policy.

How To Get A Positive Credit History

When you use your credit card, there is a bill at the end of the month for how much you've spent on the stuff that you've bought. You can pay that bill off in full each month, or pay the minimal amount and collect debt that you would continually have to pay off as you go with the card. A good way gain positive credit is to pay off. It helps usually if you pay in full.This goes the same way with loans. Another way to help your score is to get a secured credit card so that you could put money into the cards account and it would be fully paid off because your credit limit would be the amount of money that's already on the account.

Good Sites For Keeping Your Money In Check.

Site 1: FutureAdvisor. FutureAdvisor Is worth $9 to $19 dollars a month. It is there to give people advise over their finances. Especially on investments.
Site 2:Mint. Mint is a free to use website that also gives advise on budgeting, along with budgeting your money for you.
Site 3:Credit Karma: Gives you your credit report and lets people monitor their spending patterns.
Site 4:Goodbudget: Goodbudget "brings the time-tested envelope budgeting method into your smartphone" so that you know how to budget your money.
Site 5: Pocket Guard. Pocket Guard lets you access your bank accounts on mobile phones to check on your balances and transactions.

The Advantages And Disadvantages To Credit.

Advantages: Credit is there for you when an emergency comes by, such as your child getting hurt unexpectedly. You can put the bill on your credit card and then pay it off as you go. Additional benefits come with credit cards such as discounts from stores, life or travel insurance, etc. Buying something expensive and paying it off as you go is an advantage, because you can have it while you keep paying it off.
Disadvantages: If you miss a payment, your credit score could drastically change, making it harder to get a loan, buy a car, etc. Large amounts of debt could pile up, making it so that instead of getting the things you want with your money, you have to pay off those credit cards first. Your card could get stolen and have big purchases made, without you knowing, so you have to pay most of that off when everything gets figured out.

APR And Its Importance

Your APR is your Annual Percentage Rate and that is the amount of interest that will be paid with loans. The higher or lower the APR, the higher or lower the monthy bill is. It is important when applying for a credit card because your credit card comes with its own APR. You want a card with a low APR so that you don't have to pay as much interest on a loan.

Let's say you wanted to buy a basketball hoop worth 1500 dollars. If you have an 18% APR and you could only pay 50 per month on that hoop, you would pay a total of 2007.70 dollars by the time it was fully paid off because of the APR.

When And Where Can You Order A Free Credit Report?

You are able to get a free credit report every 12 months from the 3 credit reporting agencies. It's important you do so every 12 months because then you can check if anything has gone wrong with your financial situation. If you find any errors with your reports, go to both your reporting company, and the company that provided that information, tell them what when wrong and why you think it might have gone wrong.

Credit Counseling Agencies

Credit Counseling Agencies help people get through moments of financial crisis. They help guide people through their troubles and teach them what to do next.
Contact information for a credit counseling agency in Ohio below.

Address: 5555 Renner Rd, Columbus, OH 43228

Phone:(614) 552-2222

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