MoneyWi$e Webinar

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MoneyWie Webinar

• Consumer Action and the National Community
  Reinvestment Coalition welcome you to this
  financial literacy webinar.
• The training will start shortly.

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Training overview

• Introductions
• About MoneyWie
• Teaching Adults
• Module I Good Credit
• Module II Rebuilding Good Credit
• Implementation
• Materials Evaluation

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About MoneyWie

• A joint financial education project of Consumer
  Action and Capital One
• A unique and innovative financial literacy
  program that combines free multilingual
  publications, train-the-trainer materials,
  regional conferences and funding opportunities
• Learn more at www.money-wise.org

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MoneyWie Modules

• Banking Basics
• Elder Fraud
• ID Theft and Account Fraud
• Keys to Homeownership
• Micro Business
• Money Management
• Personal Bankruptcy
• Saving to Build Wealth
• Teens and Money

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Teaching Adults

• A good teacher of adults
• Is people-centered, more interested in people
  than things, more interested in individuality
  than conformity, and more interested in finding
  solutions than following rules.
• The teacher must be understanding, flexible,
  patient, humorous, practical, creative and
  prepared.
  
  
• How to Teach Adults, William A Draves, The
  Learning Resource Network

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Good Credit

• Purpose
• To provide workshop participants with an
  understanding of what credit is, the impact of
  credit on ones financial status, and skills for
  establishing and maintaining good credit
• Objective is to learn
• How to establish credit
• How to maintain good credit
• How to request and read a credit report
• What credit scoring is
• What your rights as borrower are

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Materials

• Building and Rebuilding Good Credit brochure
• Good Credit Leaders Guide
• Lesson Plan
• PowerPoint Slides

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What is credit?

• Ability to borrow money or obtain goods by paying
  little or no money at the time of purchase.
• Your promise to pay the original cost later or
  over time plus interest.

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Why do you need credit?

• Buying a home or renting an apartment
• Getting a job
• Getting phone service
• Finance an automobile
• Spreading out payments for expensive items
• Qualify for insurance
• Get a loan
• Obtain a credit card

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Good vs. bad credit

• Bad credit
• Unreliable in paying bills
• Bills are paid late
• Debts are abandoned
• Filed for bankruptcy

• Good credit
• Reliable in paying bills
• Companies willing to extend credit

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Borrowers responsibilities

• Borrow only what you can repay
• Read and understand the credit contract
• Pay debts promptly
• Notify creditor if you cannot meet payments
• Report lost or stolen credit cards promptly

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How can I get credit?

• Establish an account
• Ask a local company
• Find a co-signer
• Get a secured credit card
• Use it responsibly for a year or two
• Pay all bills promptly
• Dont bounce checks

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Why is credit denied?

• No credit history
• Too much outstanding credit
• Credit not handled responsibly in the past
• Victim of fraud

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What is a credit report?

• Record your loans, credit cards, payments and
  outstanding debts
• Lenders report your credit usage to companies
  called Credit Reporting Bureaus
• Equifax
• TransUnion
• Experian

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Whats on your credit report?

• Current and past payment information
• On-time and late payments
• Outstanding credit limits and balances
• Information from public records
• Names of companies who have asked a copy of your
  report

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Who can get a copy of the report?

• You
• Only those who can prove a legitimate need
• Banks
• Credit card companies
• Landlords or real estate companies
• Employers

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How can you get a copy?

• www.annualcreditreport.com
• Experian, TransUnion, Equifax
• Youll need to provide this information
• Full name
• Social Security number
• Addresses for past 2-5 years, telephone number
• Birthdate

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The cost for your credit report

• One free copy from each bureau each year.
• Your credit report is also free if youve been
  denied credit in the past 60 days, based on your
  credit report.
• Otherwise, the cost is approximately 9.

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Activity - Credit profiles

• Web Profile Lupita
• Poll Score Lupitas credit
• Poor
• Passable
• Good
• Excellent
• Poll Do you think Lupita will get the loan?
• Chat Why do you think Lupita will/will not get
  her second car loan?

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Rebuilding Good Credit

• Improve Your Credit - Brochure
• Rebuilding Your Credit - Guide
• Lesson Plan with Activities
• PowerPoint Slides

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Rebuilding Good Credit

• By the end of the training participants will
  understand
• How poor credit can prevent them from doing
  certain things.
• That it is never too late to start to rebuild
  good credit.
• What information on a credit report is seen as
  negative.
• Some ways to improve ones credit.

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Damaged credit

• What does bad credit mean to you?
• How can bad credit limit your life?
• How do you know if you have bad credit?

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Credit repair companies

• Everything a credit repair company can do
  legally, you can do yourself
• Credit repair companies charge moneysometimes
  lots of money
• No one can legally remove accurate negative
  information from a credit report.
• If you decide to work with a company, research
  its offer carefully.

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Lets evaluate some ads

• Page 13 - Lesson Plan - Rebuilding Good Credit
  File
• 1 BAD CREDIT? NO CREDIT? NO PROBLEM!
• Guaranteed Loans!
• Consumer Credit Counseling Service.
• Poll Would you respond to ad 1, 2 or 3?

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If a collection agency calls

• Respond immediately if you dont agree that you
  owe money.
• Ask the collection agency to prove that you owe
  the money.
• A collection agency cant try to collect the debt
  while its validity is being checked out.

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Rebuilding good credit

• It takes time and patience to establish good
  credit.
• Each persons situation is different and lenders
  have wide-ranging requirements.

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Ways to rebuild good credit

• Pay your existing credit accounts on time
• Apply for a credit card or small loan
• Find a co-signer
• Get a secured credit card

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Activity Secured Credit Cards

• Lets take a few minutes to compare secured
  credit card offers. - Page 17 - Lesson Plan
• Poll Which credit card offer has the most
  favorable terms?

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Keeping your good credit

• Review your credit report at least once a year.
• Close unneeded accounts.
• Pay your bills on time.
• Apply only for credit that you really need.
• If you divorce or separate, make sure that joint
  accounts are closed.

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Implementation

• MoneyWie flexible, independent modules that can
  be tailored and combined to address the needs of
  your audience
• All publications are free for non-profit
  organizations
• Visit www.money-wise.org

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Thank you for attending!

• Please send us the evaluation!!
• Consumer Action
• hotline_at_consumer-action.org
• outreach_at_consumer-action.org
• www.consumer-action.org
• www.money-wise.org