ECONOMIC EDUCATION FOR CONSUMERS Chapter 10
|
|
- Ethan Jefferson
- 5 years ago
- Views:
Transcription
1 WHAT S AHEAD 10.1 What Is Credit? 10.2 How to Qualify for Credit 10.3 Sources of Consumer Credit 10.4 Credit Rights and Responsibilities 10.5 Maintain a Good Credit Rating
2 LESSON 10.1 What Is Credit? GOALS Identify reasons to borrow and the trade-offs you make when you borrow. Discuss how to plan when and how much to borrow. Slide 2
3 KEY TERMS credit Equity Credit Video: Funny Money Credit Video Slide 3
4 Consumer Action Ryan lives at home with parents. His take-home pay from a part time job is $1,700 a month. He gives his parents $300 each month to help out with expenses. He would like to buy a new car that he saw at a local dealership. To buy it, he would have to get a loan with payments of $400 a month. He really wants the car. Should he buy it? Slide 4
5 What is Credit? The ability to borrow money in return for a promise of future payment is credit. Future repayment usually includes interest. Example: Suppose you use credit to buy a jacket for $100. If your interest rate is 15% per year, you must repay $115 at the end of the year. 100 X.15 =$ = 115 You give up future spending for the ability to purchase now. Slide 5
6 Why Borrow? For your goals For a home A home as an investment Equity: The difference between the amount owed on a home and the homes' value. Taxes and homeownership For your education Student-loan borrowers average debt in 2011 was $26,500! For your health Slide 6
7 Plan Your Borrowing When to borrow Is it important that I buy the good or service I want now? Do I have to borrow to buy the product? Can I afford to make the payments on the loan Will I be able to buy other products I want more if I borrow to buy this product? How much to borrow Basic rule to borrowing is that your total debt payments (excluding housing costs) should be no more than 20 to 25 percent of your net pay Example: If you make $500/month your total debt payment should be no more than $125/month 500 X.25 = $125 Slide 7
8 LESSON 10.2 How to Qualify for Credit GOALS Explain how lenders judge your creditworthiness. Describe the factors that determine your credit rating. Slide 8
9 KEY TERMS creditworthiness character credit history cosign capacity capital credit bureau credit rating Slide 9
10 Your Creditworthiness Creditworthiness is a measure of your reliability to repay a loan How you can establish creditworthiness Find and keep a job with steady income, either part-time or full-time Establish a checking and savings account at a financial institution. Do not overdraw your accounts Apply for a credit card through a local bank or institution. Charge only what you can afford and pay it off on a monthly basis Apply for a loan and make all payments in full and on time. Slide 10
11 Your Creditworthiness The Three C s of Credit Character A measure of your financial responsibility Credit History: A record of your past borrowing and repayments Capacity A measure of your financial ability to repay a loan Capital The value of what you own (assets) including savings, investments and property Slide 11
12 Your Credit Rating Loan applications Credit bureaus A company that collects information such as your borrowing and repayment history and sells it to lenders. Three largest credit bureau companies Experian, Transunion, Equifax Credit ratings Fair Isaac Corporation, which created the most widely used scale referred to as FICO scores. Between 300 and 850 (Best) Slide 12
13 Credit Rating Factors Book Pg. 334 Payment history Current debt Length of credit history New accounts and inquiries Types of credit used Weighting of factors that affect FICO credit scores Slide 13
14 What are the three C s of credit? Character Capacity Capital What is a credit rating? A measure of your creditworthiness What kinds of information is a credit bureau collecting about you? Your past borrowing Your repayment history Slide 14
15 LESSON 10.3 Sources of Consumer Credit GOALS Explain differences between a secured and an unsecured loan. Describe benefits and costs of using credit cards. Slide 15
16 KEY TERMS secured loan collateral installment loan unsecured loan regular charge account revolving charge account grace period credit limit Slide 16
17 Types of Consumer Borrowing Loans You receive an amount of money all at once to make your purchase Specific payments to repay the loan with interest by a certain date Credit Card Accounts The amount of your purchase is added to your account Pay at least the minimum payment each month No specific payoff date Slide 17
18 Consumer Loans Secured loan Backed by something of value pledged to ensure payment Example: Home loans The property pledged to back a loan is called Collateral Installment loan Repaid in a certain number of payments with a fixed interest rate for the term of the loan Example: Vehicle Loans Unsecured loan Not backed by collateral Based on your creditworthiness alone Usually higher interest rates Slide 18
19 Sources of Loans Banking institutions Banks, savings and loan associations and credit unions Other sources of consumer loans Finance companies Payday loans Life insurance companies Credit card cash advances Pawnbrokers Rent-to-own companies Book Pgs Slide 19
20 Credit Cards Regular charge accounts Account balance must be paid in full each month No stated interest rate American Express, Diner s Club, some department stores Revolving charge accounts Allows you to carry a balance from one month to the next. Pay interest on the account balance Sources of credit cards Visa, MasterCard, American Express, Discover Charities, gas companies, universities, credit unions, Credit card incentives Example: Free gas, airline miles etc. Slide 20
21 Did you know?? The first widely accepted plastic charge card was issued in 1958 by American Express. Average credit card debt per household with credit card debt: $15,799* Each American household receives approximately 6 credit card offers a month. The typical response rate is.33% (one third of one percent). Total U.S. consumer debt: $2.5 trillion, as of December 2011 The average age at which a U.S. consumer under the age of 35 first adopted a credit card is 20.8 years Slide 21
22 Credit Card Costs Annual fees $15 to $100 Many cards do not have annual fees Interest Credit Card Balance Calculator Grace period- the time between the billing date and the payment due date when no interest is charged. Limits and penalties Credit limit-the maximum amount you are allowed to charge Fees if you go over your credit limit Slide 22
23 Control Credit Card Costs A loan as an alternative The minimum payment trap Choose the least expensive card Slide 23
24 LESSON 10.4 Credit Rights and Responsibilities GOALS Discuss ways that laws protect your credit rights. Describe how to take responsibility for your own financial health. Slide 24
25 KEY TERMS finance charge annual percentage rate (APR) Slide 25
26 Consumer Credit Rights Truth in lending Truth in Lending Act of 1968 Requires all banks to calculate credit costs the same way Provide the finance charge and annual percentage rate Finance charge: the total cost a borrower must pay for a loan, including interest and fees Annual percentage rate: the finance charge calculated as a percentage of the amount borrowed Equality in lending Equal Credit Opportunity Act of 1975 Made it illegal to refuse credit based on the basis of race, color, religion, national origin, gender, marital status or age. Slide 26
27 Consumer Credit Rights Protect your credit history Fair Credit Reporting Act of 1971 Requires lending organizations to identify the credit bureau that supplied information used in lending decisions Allows people who are refused credit 30 days to request a free copy of their credit report Requires credit bureaus to give consumers one free copy of their credit report a year. Slide 27
28 Consumer Credit Rights Act if you are refused credit pg. 346 Resolve billing and product quality problems Within 60 days write to company that issued your card Company must reply within 30 days and resolve the dispute within 90 Protection from abusive collection practices Fair Debt Collection Act of 1977 A debt collector may not: Call before 8 am Call after 9 pm Call your place of work if they are aware that your employer doesn t approve Lie or harass you Ignore a written request to a stop contact Slide 28
29 Consumer Credit Responsibilities Accept responsibility Know your debt capacity Take Home pay Fixed expenses (rent, insurance)- Other expenses (food, gas, etc) = What's left? Credit and family Self-control with credit Pay more than the minimum Avoid too many credit cards Pay cash Keep accurate records Slide 29
30 LESSON 10.5 Maintain a Good Credit Rating GOALS Explain how to establish a positive credit history. Discuss how to avoid credit problems and get help if you need it. Slide 30
31 KEY TERMS identity theft debt consolidation loan bankruptcy Slide 31
32 Establish Your Credit History Start small Never miss a payment Save Regularly Charge small amounts and pay them off immediately Establish your own credit Avoid common credit mistakes Read what you sign Be aware of identity theft Identity theft: using someone else s identity to get cash or buy products using credit, or to access financial accounts that belong to the victim. Businesses are responsible for debts, but records of the transactions can ruin your credit history! Slide 32
33 Identity Theft How They Become You Social security #, Driver s license # or Credit Card # How to protect yourself Never give out your Social Security number unless absolutely necessary What to do if you identity is stolen Call the 3 major reporting agencies Equifax, Experian, & Trans Union. Have them to put a fraud alert on your file and ask that they call you before any new accounts are opened or existing accounts are changed Report the theft to law enforcement agencies Contact your bank or other organizations that have extended you credit Call the Federal Trade Commission (FTC) ID hotline or visit the FTC s website. Slide 33
34 Help for Credit Problems Debt consolidation loans Designed to pay off all the smaller loans and give you one payment to make each month Cost of a debt consolidation loan Lower monthly payment, but you pay more in interest It s a bandage, not a cure Credit counseling services Bankruptcy A legal process in which people who cannot pay their debts must surrender most of their property. Stays on your credit report for 10 years. Slide 34
ECONOMIC EDUCATION FOR CONSUMERS Chapter 10
WHAT S AHEAD 10.1 What Is Credit? 10.2 How to Qualify for Credit 10.3 Sources of Consumer Credit 10.4 Credit Rights and Responsibilities 10.5 Maintain a Good Credit Rating LESSON 10.1 What Is Credit? GOALS
More informationChapter 6 - Credit. Section 6.1
Chapter 6 - Credit Section 6.1 Credit is a medium of exchange which allows individuals to buy goods or services now and pay for them later The creditor supplies money, goods, or services in a credit agreement
More informationCredit Cards. Annual Percentage Rate - What you are paying each month -- unpaid balances calculated as a percentage.
Credit Cards Annual Fee - Amount you pay each year to have a credit card. Annual Percentage Rate - What you are paying each month -- unpaid balances calculated as a percentage. Balance - The total charges
More informationCredit Education Program
Credit Education Program Course Objectives Identify ways to decrease spending and increase income Read and understand the purpose of your credit report Discuss common debt traps to avoid How lenders evaluate
More informationLesson 5: Credit and Debt
Lesson 5: Credit and Debt debt: something owed to a person or an organization credit: the privilege granted to approved clients to receive goods or services and to pay for them in the future In February
More informationWelcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Charge It Right 2
Charge It Right Welcome 1. Agenda 2. Ground Rules 3. Introductions Charge It Right 2 Objectives Define credit Explain why credit is important Identify the factors creditors look for when making credit
More informationUnderstanding Credit
Understanding Credit LAURA STEINBECK DIRECTOR OF BUSINESS DEVELOPMENT, SALLIE MAE 2018 MASFAP CONFERENCE Agenda 2 Credit Management Protect Yourself Understanding Credit Reports Summary: Financial Health
More informationCredit and Going into Debt A. What is credit?
Lesson 4 standards E.6.1 Explain the basic functions of money. E.6.2 Identify the composition of the money supply of the United States. E.6.3 Explain the roles of financial institutions. E.6.6 Explain
More informationChapter 27. Your Credit and the Law pp
Your Credit and the Law pp. 434-447 Learning Objectives After completing this chapter, you ll be able to: 1. Explain how government protects credit rights. 2. Name federal laws that protect consumers.
More informationChapter 26 11/9/2017 1
Chapter 26 11/9/2017 1 Average college students has 3 credit cards Also between $1500 & $2000 in debt Things to know if you re getting a credit card Who accepts it? What amount can you charge to meet your
More informationProject Pro$per. Credit Reports and Credit Scores
Project Pro$per Presents Credit Reports and Credit Scores Participant Guide www.projectprosper.org www.facebook.com/projectprosper Based on Wells Fargo s Hands on Banking The Hands on Banking program is
More informationCredit and Debt.notebook August 28, 2014
Credit and Debt What does it mean to have credit? Credit means someone is willing to loan you money in exchange for your promise to repay it, usually with interest. Interest the amount of money you pay
More informationTeens. lesson seven. about credit
Teens lesson seven about credit advantages and disadvantages of credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient than writing checks
More informationTABLE OF CONTENTS. Healthier Black Elders Center
TABLE OF CONTENTS What is credit............................................1 The five C s of credit...................................... 2 Types of credit...........................................3
More informationPresentation Slides. Lesson Four. Credit 04/09
Presentation Slides $ Lesson Four Credit 04/09 advantages and disadvantages of using credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient
More informationCredit: Buy Now, Pay Later
Credit: Buy Now, Pay Later Unit 3 Money Management School Performance Write your answers at the top of your worksheet. 1. Number of times you have missed class this term. 2. Number of times you have been
More informationUNDERSTANDING CREDIT. WASFAA Conference Seattle, WA Speakers: Thalassa Naylor, Sallie Mae Anthony Lombardi, Sallie Mae Date: April 10, 2017
UNDERSTANDING CREDIT WASFAA Conference Seattle, WA Speakers: Thalassa Naylor, Sallie Mae Anthony Lombardi, Sallie Mae Date: April 10, 2017 Agenda 2 Credit Management Protect Yourself Understanding Your
More informationTeens. lesson seven. about credit
Teens lesson seven about credit advantages and disadvantages of credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient than writing checks
More informationCharge It Right. FDIC Money Smart for Young Adults. Building: Knowledge, Security, Confidence
Charge It Right FDIC Money Smart for Young Adults PNC is proud to work with the FDIC to offer their Money Smart program to our customers, to support lifelong learning in Financial Education. Building:
More information2006 BALANCE FINANCIAL FITNESS PROGRAM
2006 BALANCE FINANCIAL FITNESS PROGRAM Tools for Financial Independence Manage money Prepare for future bills Open / maintain checking and savings accounts Use credit wisely Invest money Attend seminars
More informationUnderstanding Credit. What it is, why it s important, and how you can maintain it. Brought to you by Sallie Mae and FICO
Understanding Credit What it is, why it s important, and how you can maintain it Brought to you by Sallie Mae and FICO Introduction A student loan may be your first major credit experience. This is a good
More informationMODULE J: SMART CHOICES FOR MANAGING CREDIT
MODULE J: SMART CHOICES FOR MANAGING CREDIT 1 Common Sense Economics ~ What Everyone Should Know About Wealth and Prosperity http://commonsenseeconomics.com/ Turn on the learning light! CREDIT, FINANCIAL
More informationUnderstanding Credit. Lisa Mitchell, Sallie Mae April 6, Champions of Financial Aid ILASFAA Conference
Understanding Credit Lisa Mitchell, Sallie Mae April 6, 2017 Credit Management Agenda Understanding Your Credit Report Summary: Financial Health Tips Credit Management Credit Basics Credit health plays
More informationAdvantages & Disadvantages to Using Credit
Advantages & Disadvantages to Using Credit Advantages to Using Credit Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient than writing cheques Consolidates
More informationPersonal Finance Unit 2 Chapter Glencoe/McGraw-Hill
0 Chapter 6 Consumer Credit What You ll Learn Section 6.1 Explain the meaning of consumer credit. Differentiate between closed-end credit and openend credit. Section 6.2 Name the five C s of credit. Identify
More informationProfiles in Credit is designed to be flexible and meet the needs of learners in different educational settings. Examples include:
Profiles in Credit Educator Resource Guide Module Summary Profiles in Credit is a self-paced, interactive learning module in which students visit the social media profiles of three young people facing
More informationEssential Standard Understand business credit and risk management.
Essential Standard 5.00 Understand business credit and risk management. 1 Objective 5.01 Understand credit management 2 3 Topics Main types of credit Common advantages and disadvantages of businesses using
More informationCredit Reports and Scores
Credit Reports and Scores Advanced Level The Credit Process Credit goods, services, and/or money received in exchange for a promise to pay back a definite sum of money at a future date Borrower Someone
More informationUnderstanding Your FICO Score. Understanding FICO Scores
Understanding Your FICO Score Understanding FICO Scores 2013 Fair Isaac Corporation. All rights reserved. 1 August 2013 Table of Contents Introduction to Credit Scoring 1 What s in Your Credit Reports
More informationIntroduction. Purpose. Student Introductions. Objectives (Continued) Objectives
Introduction Instructor and student introductions. Module overview. 1 2 Your name. Student Introductions Your expectations, questions and concerns about credit cards. Purpose will teach you about credit
More informationEconomic Education for Consumers Chapter 10 Study Guide Credit: You re In Charge
Economic Education for Consumers Chapter 10 Study Guide Credit: You re In Charge Section 10.1 What is Credit? The ability to borrow money in return for a promise of future payment is When you are using
More informationKeeping Finances Under Control. How to Manage Debt so it Doesn t Manage You
Keeping Finances Under Control How to Manage Debt so it Doesn t Manage You Seminar Objectives What is DEBT? What are the types of debt? What is good debt? What is bad debt? What are the benefits and costs?
More informationGREENPATH FINANCIAL WELLNESS SERIES
GREENPATH FINANCIAL WELLNESS SERIES UNDERSTANDING YOUR CREDIT REPORT & SCORE Empowering people to lead financially healthy lives. TABLE OF CONTENTS Understanding credit reports...2 What s in a credit
More information13.1. Reading a Credit Report EXERCISE. THEME 4 Lesson 13: Applying for Credit NAME: CLASS PERIOD:
13.1 NAME: CLASS PERIOD: Reading a Credit Report Your ability to qualify for a loan depends on a credit report. A credit report is a record of an individual s personal credit history. It is probably a
More informationVolume 2 Your Credit Report and Your Rights
Volume 2 Your Credit Report and Your Rights Your Credit Report and Your Rights Take the first step in changing your financial future. Call InCharge Debt Solutions today at 1.877.544.7772 or visit www.incharge.org
More informationCredit Cards. The Language of Credit. Student Loans. Installment Loans 12/14/2016
Quick Response Explain how you think credit cards work. How much do you have to pay every month? What happens if you pay late? What kinds of fees are involved? Unit 4 - Good Debt, Bad Debt: Using Credit
More informationName Period. Finance charge Loan term Grace period Late fee Cash Advance Fee Prepayment Penalty Origination Fee Amortization Collateral Capital
Name Period GOOD DEBT, BAD DEBT: USING CREDIT WISELY ACCELERATED Say you dream of buying a $15,000 car. Even if you saved $200 a month, it would still take you seven years to save what you needed to buy
More informationMoney Management Curriculum
Money Management Module 4: Credit Reports & Credit Scores Money Management Curriculum Module 4: Credit Reports & Credit Scores Project Team: Ruby Ward, Professor, Utah State University Trent Teegerstrom,
More informationModule 7 - Credit Reporting HANDOUT 7-1
ParticipantHandbook 1 Module 7 - Credit Reporting HANDOUT 7-1 Credit bureaus Credit bureaus are agencies that collect information about how we use credit. They produce personal credit reports. Credit bureaus
More informationQuestion of the Day. What percent of year olds have a credit card?
Chapter 6.1 Credit Objectives Explain the advantages and disadvantages of using credit Identify the different types of consumer credit Describe secured and unsecured loans Describe how to establish a sound
More informationYour Credit. Objectives. An Introduction to Personal Credit. By the end of this presentation you will have a understanding of: 1/19/2016.
Your Credit An Introduction to Personal Credit Objectives By the end of this presentation you will have a understanding of: Credit Score Where can I find it? What is it? How do I get it? Advantages of
More informationIntroduction Slide SET. Host Organization s Name July 30, Business Smart is a business education series developed by
Introduction Slide Business Smart is a business education series developed by SET Host Organization s Name July 30, 2015 1 Business Smart Workshop 3 Modules READY SET GO 2 Today s Presenter Add Name of
More informationUnderstanding Vehicle Financing
Understanding Vehicle Financing Understanding Vehicle Financing With prices averaging more than $31,000 for a new vehicle and $17,000 for a used model from a dealership, you might consider financing or
More informationMODULE 7: Borrowing Basics PARTICIPANT GUIDE
MODULE 7: Borrowing Basics MONEY SMART for Adults SEPTEMBER 2018 The Federal Deposit Insurance Corporation is an independent agency created by the Congress to maintain stability and public confidence in
More informationUnderstanding Credit Reports
Understanding Credit Reports Family Economics & Financial Education Take Charge of Your Finances Credit Report Detectives Meet Isabella, your new client: About to graduate from college In extreme debt
More informationCredit Building Apps
Credit Building Apps Apps that Can Help Build and Repair Credit Webinar of September 27, 2018 Sponsored by Community Development and the Payments, Standards, and Outreach Group of the Federal Reserve Bank
More informationFINANCIAL FOUNDATIONS
FINANCIAL FOUNDATIONS A Financial Beginnings Financial Education Program CREDIT Presenter's Guide Presented by Our Mission Financial Beginnings empowers youth and adults to take control of their financial
More informationTheme 8 Review - Answer Key
Theme 8 Review - Answer Key. Due to technology, the financial world is becoming each year. less complex X more complex simpler less important. The term for the act of purchasing goods and services by paying
More informationFederal Reserve Bank of Philadelphia
Federal Reserve Bank of Philadelphia 1 Credit is a valuable commodity. Having the ability to borrow funds enables us to obtain things we would otherwise have to save years to afford: homes, cars, a college
More informationMoney Matters: Making Cents of It All
Slide 1 Money Matters: Making Cents of It All Dollars and Sense Page1 Slide 2 Copyright Copyright Texas Education Agency, 2014. These Materials are copyrighted and trademarked as the property of the Texas
More informationReviewing C YouR CRedit RepoRt
ChapteR 2 Reviewing C YouR CRedit RepoRt What do your creditors have to say about the way you handle money? Having a good credit score can help you turn your home-buying dream into a reality. There s much
More informationHOW TO USE CREDIT. Latino Community Credit Union & the Latino Community Development Center.
HOW TO USE CREDIT Latino Community Credit Union & the Latino Community Development Center www.latinoccu.org Copyright 2016 Latino Community Credit Union Made possible by a generous contribution from the
More informationUnderstanding. What you need to know about the most widely used credit scores
Understanding What you need to know about the most widely used credit scores 300 850 The score lenders use. FICO Scores are the most widely used credit scores according to a recent CEB TowerGroup analyst
More informationc» BALANCE C:» Financially Empowering You The World of Credit Reports Podcast [Music plays] Nikki:
The World of Credit Reports Podcast [Music plays] Nikki: You re listening to world of credit. Hi, I m Nikki, your host for today s podcast. Credit reports and credit scores influence our lives in many
More informationBudgeting & Debt Basics
Budgeting & Debt Basics Why Have a Budget? Gain control over your finances Get the most out of your money Achieve your financial goals What is a Budget? A plan for saving and spending Allows you to choose
More informationFinancial Fitness: MONEY Matters
Financial Fitness: MONEY Matters Financial Literacy and Education University of Colorado Denver Spring 2015 Presenter: M. Lesa Briggs After this presentation, you will be able to: Evaluate your student
More informationNow, let me turn the program over to Jacqueline Cooke, Women s Bureau Regional Administrator in Boston, to introduce our first speaker. Jackie?
Wi$e Up Teleconference Call February 28, 2006 Becoming Credit Smart Speaker 1 Amy Perry Jane Walstedt: Now, let me turn the program over to Jacqueline Cooke, Women s Bureau Regional Administrator in Boston,
More informationCredit and Credit Cards
Credit and Credit Cards What s Next Project Credit Cards They are all around you. Most people have at least one. Some have many. They are credit cards. A credit card allows you to pay for merchandise or
More informationEverFi Financial Literacy Cumulative Exam
EverFi Financial Literacy Cumulative Exam Module 1: Savings 1. Use the Rule of 72 to calculate how long it will take for your money to double if it s earning 6% in interest: a. 12yrs b. 16yrs c. 36yrs
More informationTeacher's Guide. Lesson Seven. Credit 04/09
Teacher's Guide $ Lesson Seven Credit 04/09 credit websites Consumers may use credit frequently, but many struggle to manage it wisely. To optimize credit and make sound financial decisions, students need
More informationFact, Fiction & FICOs: Presented by: Vance Edwards, CMB Certified FICO Professional MGIC Marketing Program Director
Fact, Fiction & FICOs: Presented by: Vance Edwards, CMB Certified FICO Professional MGIC Marketing Program Director Agenda What makes up a credit score (and what doesn t) What causes that score to move
More informationCredit Reports 101. Bill Bufkins, November 3, 2011
Credit Reports 101 Bill Bufkins, November 3, 2011 What is a credit report? A credit report is a record of your past borrowing and repayment activity. The information in your credit report helps determine
More informationc» BALANCE c» Financially Empowering You Credit Matters Podcast
Credit Matters Podcast [Music plays] Nikki: You re listening to Credit Matters. Hi. I m Nikki, your host for today s podcast. In today s world credit does matter. In fact, getting and using credit is part
More informationCreditworthiness (UXL)
Creditworthiness (UXL) Since so much debt is unsecured, it is important for companies to have information on how well their potential borrowers handle money in order to assess their creditworthiness, or
More informationBuilding a strong credit history. A public education campaign brought to you by MasterCard
Building a strong credit history A public education campaign brought to you by MasterCard Buying your first car, renting your first apartment, starting college, beginning your first real job master your
More informationEssential Facts for Students Carol A. Carolan, Ph.D.
The ABCs of Credit Card Finance Essential Facts for Students Carol A. Carolan, Ph.D. HOW LONG AND HOW MUCH DO I HAVE TO PAY? By using the following chart you can find out your total payoff time and total
More informationFederal Reserve Bank of Philadelphia
Federal Reserve Bank of Philadelphia 1 When you apply for credit, whether it s a credit card, car loan, or a mortgage, lenders want to know whether you are likely to repay your loan and make the payments
More informationCredit Reports & Credit Scores 101. Mary C. Hurlburt Certified Consumer Credit Counselor and Score Volunteer
Credit Reports & Credit Scores 101 Mary C. Hurlburt Certified Consumer Credit Counselor and Score Volunteer mary.hurlburt@scorevolunteer.org Mary Hurlburt Mary Hurlburt is the Financial Counseling and
More informationISPFCU VISA PLATINUM PROGRAMS TERMS AND CONDITIONS The information about the costs of the card described is accurate as of July 14, 2017.
ISPFCU VISA PLATINUM PROGRAMS TERMS AND CONDITIONS The information about the costs of the card described is accurate as of July 14, 2017. ANNUAL PERCENTAGE RATE (APR) Other APRs Platinum Elite: Wall Street
More informationA Credit Smart Start. Michael Trecek Sr. Risk Analyst Commerce Bank - Retail Lending
A Credit Smart Start Michael Trecek Sr. Risk Analyst Commerce Bank - Retail Lending Agenda Credit Score vs. Credit Report Credit Score Components How Credit Scoring Helps You 10 Things that Hurt Your Credit
More informationCREDIT SESSION OBJECTIVES SUBJECT INDEX
CREDIT SESSION OBJECTIVES In today s economy, it would be rare not to use credit to pay for large purchases, such as car repairs or any type of emergency situation. Credit can be an overwhelming topic,
More informationFinancial literacy. Debt load. Card options
Debt load and taking classes at another institution. Fredonia (the home institution) requires that the student complete the following steps before aid can be disbursed for classes taken at the visited
More informationCHAPTER 8. Personal Finance. Copyright 2015, 2011, 2007 Pearson Education, Inc. Section 8.7, Slide 1
CHAPTER 8 Personal Finance Copyright 2015, 2011, 2007 Pearson Education, Inc. Section 8.7, Slide 1 8.8 Credit Cards Copyright 2015, 2011, 2007 Pearson Education, Inc. Section 8.7, Slide 2 Objectives 1.
More informationGENERAL FINANCING QUESTIONS
GENERAL FINANCING QUESTIONS 1. What is a Mortgage? Tips for Homebuyers Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the
More informationBASIC FINANCIAL LITERACY. Economics Marshall High School Mr. Cline Unit Three DD
BASIC FINANCIAL LITERACY Economics Marshall High School Mr. Cline Unit Three DD * Nothing So Simple Has Ever Been So Hard Reconciling their account on a regular basis could have helped prevent this! Credit
More informationUnderstanding Your Credit Card Essentials
Understanding Your Credit Card Essentials 7.4.2.F1 Twenty-one year old Jenny felt rich when she received her first credit card during her junior year of college. She charged $2,500, her credit limit, the
More informationSecrets to Success: Personal Finance Management
Secrets to Success: Personal Finance Management Harvard University Employees Credit Union (HUECU) A financial institution exclusively serving the Harvard University students, alumni, faculty, staff, and
More informationCareer Day. Diane Hamilton Mortgage Specialist Equity Resources, Inc..
Career Day Diane Hamilton Mortgage Specialist Equity Resources, Inc.. Responsibilities of my Career 1. I need to make sure that I have the families best interest in mind at all times. 2. Complete understanding
More information2) The proper use and control of credit is the best way to build a good credit history. Answer: TRUE Diff: 1 Question Status: Previous edition
Personal Finance, 6e (Madura) Chapter 7 Assessing and Securing Your Credit 7.1 Background on Credit 1) If you refrain from using any credit, it will assure you the lowest possible interest rate when you
More informationUNDERSTANDING CREDIT. KASFAA Conference Manhattan, KS April 21, Robb Cummings Director of Business Development
UNDERSTANDING CREDIT KASFAA Conference Manhattan, KS April 21, 2016 Robb Cummings Director of Business Development FICO Score 2 A FICO Score is a three-digit number calculated from the credit information
More informationThe ABCs of Credit Reporting. Lesson plan, participant materials and answer keys
The ABCs of Credit Reporting Lesson plan, participant materials and answer keys The ABCs of Credit Reporting Lesson plan, participant materials and answer keys This document is provided at no cost by Experian
More informationP.O. Box 7560 Baltimore, MD (410) TTY: (410)
P.O. Box 7560 (410) 281-6200 TTY: (410) 966-9850 VISA CREDIT CARD AGREEMENT AND DISCLOSURE Pledged Share Account(s) # (Share Secured Visa) In this Agreement and Disclosure ( Agreement ) the words, you
More informationYour Money, Your Goals too. Financial empowerment toolkit
Your Money, Your Goals too Financial empowerment toolkit DISCLAIMER This presentation is being made by a Consumer Financial Protection Bureau representative on behalf of the Bureau. It does not constitute
More informationCredit & Debt. GOAL: Provide an awareness & understanding of what credit is.
Credit & Debt GOAL: Provide an awareness & understanding of what credit is. Credit Cards What is credit? Definition: having a item or using a service now then paying for that item or service later Using
More informationPersonal Credit Fundamentals &
Personal Credit Fundamentals & Your Credit Score Presented by: Harvard University Employees Credit Union Harvard Student Sources of Financial Education Sources of consumer finance education Formal Program
More informationTHE CREDIT HANDBOOK MINNESOTA ATTORNEY GENERAL LORI SWANSON. FROM THE OFFICE OF
THE CREDIT HANDBOOK FROM THE OFFICE OF MINNESOTA ATTORNEY GENERAL LORI SWANSON www.ag.state.mn.us This brochure is intended to be used as a source for general information and is not provided as legal advice.
More informationUnderstanding Your FICO Score
Understanding Your FICO Score Contents Your FICO Score A Vital Part of Your Credit Health............ 1 How FICO Scores Help You................ 2 Your Credit Report The Basis of Your FICO Score..............
More information5/16/2006 1 of 18 Report for CHRISTINE BAKER on April 30, 2006 Click here to return. 742 CHRISTINE BAKER April 30, 2006 Credit record source: Equifax Your FICO score of 742 summarizes the information on
More informationBe Credit Wise Credit is a way of having something now and paying for it later. Many
Be Credit Wise Credit is a way of having something now and paying for it later. Many of us want to take advantage of flexibility in our spending plans by using credit. Credit isn t free; it s paid for
More informationPay over time with low monthly payments. *, ** See Page 10 for details. Step 1 Please follow these guidelines when completing your application:
SM With CareCredit... Start care immediately Pay over time with low monthly payments For yourself and your family Types of Promotional Options Available: No Interest if Paid in Full within 6, 12, 18 or
More informationKim and Tara are sisters who have very different perspectives on the use of credit.
chapter 6 Assessing, Managing, and Securing Your Credit Kim and Tara are sisters who have very different perspectives on the use of credit. Kim avoids using credit. She has paid cash for everything, including
More informationWhat You Can Do to Improve Your Credit, Now
What You Can Do to Improve Your Credit, Now Provided compliments of: 1 What You Can Do to Improve Your Credit, Now Steps to Raise Your Score Now we re going to focus on certain steps that you can take,
More informationLOAN MONEY Now and Later
LOAN MONEY Now and Later Presented by: Bobbie Bishop, Student Financial Planning Agenda 1. Loan Highlights 2. Money Basics 3. Spending Less is Ok 4. Plastic 5. It Wasn t Me 6. Reports and Scores 7. Life
More informationFor Further Information Money Smart for Young Adults Page 2 of 38
Table of Contents Money Smart for Young Adults Modules... 3 Your Guides... 3 Checking In... 5 Welcome... 5 Purpose... 5 Objectives... 5 Student Materials... 5 Pre-Assessment... 6 Borrowing Basics... 9
More informationDrive Away Happy: Car Buying Decisions
Drive Away Happy: Car Buying Decisions Buy new, buy used, or lease? These are just a few of the many decisions you ll need to make before happily driving away with a vehicle. While shopping for a car or
More informationCredit Repair Company
6 Business Credit Secrets Every Credit Repair Company Should Know 6 Business Credit Secrets Every Credit Repair Company Should Know About Business Credit is credit that is obtained in a Business Name.
More informationMODULE 7: Borrowing Basics INSTRUCTOR GUIDE. MONEY SMART for Adults
MODULE 7: Borrowing Basics MONEY SMART for Adults SEPTEMBER 2018 The Federal Deposit Insurance Corporation is an independent agency created by the Congress to maintain stability and public confidence in
More information401(k) 529 plan a American Stock Exchange (ASE) annual fee annual percentage rate (APR) asset auto insurance b bad debt balance bank bankruptcy
401(k) A retirement savings plan funded by employees and often matched by contributions from the employer; contributions are usually made before taxes and grow tax-free until withdrawn, although after-tax
More informationBeyond the Classroom. Blaise P. Johnson Gate City Bank
Beyond the Classroom Blaise P. Johnson Gate City Bank 1 Topics To Be Discussed 1. Credit Reports & Credit Scores 2. Repayment/Consolidation of Student Loans 3. Obtaining A Personal or Home Loan 4. Open
More informationModule 4: Debt Lesson Part 2
Module 4: Debt Lesson Part 2 Module 4: Debt Lesson Part 2 Getting Rid of Your Debt Forever The Lesson Blueprint Where do I Start First? What Tools Can I Use? Rookie Mistakes Where Do I Start? Debt Snowball
More information