Posted on February 1, 2018
For people with disabilities, it is important to understand the difference between using credit or debit for purchases. The main difference between the two are:
People with disabilities who want to rent an apartment or make a large purchase may need to establish credit. That is why it is important to understand how credit works.
To apply for credit, you need to fill out an application that includes information about you, such as employment information, your address, and your social security number. If you are approved, you will receive a credit card.
Your card will have a credit limit. If the credit limit is $500, you can borrow up to $500 from the credit card company at a time. That doesn’t mean you should just use the card for everything. The longer you take to pay back your debt, the more you will end up paying the company in interest and fees. It’s best to pay your entire balance every billing cycle. If you can’t do that, at least pay the minimum amount due as shown on your bill.
Using credit wisely will help you maintain a good credit score. This is important because if you want to rent an apartment, the landlord will most likely check your score to determine whether or not he thinks you can pay the rent. The same is true if you are applying for a mortgage to buy a house, applying for an auto loan to buy a car, and so on.
When you have a good credit score, you might end up paying less for housing or transportation in the long run. This is because loan officers give you lower interest rates if they think you will pay your debt on time. You get a better deal if your credit score shows you can manage your debts. You get a worse deal if you have a low credit score.
Thankfully, you can improve your credit score pretty quickly, because the reporting agencies give you a new score every month. The score is based on the number of accounts you have, how much of your balance you’ve paid off, and how long you’ve had your credit accounts. Having a few accounts for a long time is better than having a lot of accounts for a short time.
Acumen‘s expert fiscal agents are dedicated to assisting and informing those with disabilities on money management. Talk to a fiscal agent today.
If you have any difficulties finding what you need, please reach out to your agent or Customer Service (877) 211-3738, and they will be happy to help!