Your Good Credit

1
(No Transcript)
2
Five Cs of Credit

• Character
• Capacity
• Collateral
• Capital
• Conditions

3
Free Credit Reports

• Fair and Accurate Credit Transactions Act
• Georgias Fair Business Practices Act

4
Information in Credit Reports

• Personal Information
• Credit History
• Inquiries
• Public Records

5
Information in Credit Reports

• Personal Information
• Credit History
• Inquiries
• Public Records

6
Credit Averages
7
Your Credit Score
8
Your Credit Score
9
Determining Your Credit Score
690?
385?
745?
510?
10
(No Transcript)
11
8,000 for second car

• Used Car Dealer 275 down, 275/month
• Credit Card 160 month
• Bank Loan Either 125 or 250 per month
• Lease 200/month

12
The Fine Print

• 275/month _at_ 36 APR x 70 months 19,250
• 160/month _at_ 18 APR x 94 months 15,040
• 125/month _at_ 9 x 88 months 11,000
• 250/month _at_ 6 APR x 35 months 8,750
• Down payment, fees for excess mileage or wear
  tear

13
New Kitchen Appliances

• Dealer A All 3 for 58/week with free delivery
  and free maintenance
• Dealer B All 3 for 250/month. Delivery is 50
  extra. Extended warranties available for
  additional 100/month
• Dealer C All 3 for 99/month, plus delivery and
  extended warranty
• Lay-Away 300 down plus 10 fee with 6 months to
  pay off balance

14
Best Deal?

• A 58/week x 60 years _at_ 99 APR 15,080
• B 250/month x 12 months _at_ 0 APR 3,000
  1,200 for extended warranty
• C 99/month x 82 months _at_ 36 8,118
• Layaway 450/month x 6 months _at_ 0 300 (down)
  10 (fee) 3,010

15
Credit Card for Travel and Emergencies

• United Express 50 annual fee, pay balance in
  full each month
• BigBusiness Bankcard 35 annual fee, 15.9 APR
  on unpaid balance, earn bonus points
• Mistercard no annual fee, 0 APR for 6 months
  then 5 points above prime, 29.9 penalty rate
• R.U.Kiddingme Card no annual fee, 6 APR,
  purchase only from catalog

16
The Best Deal

• Not United Express Must pay balance off in full
• Not BigBusiness Bankcard 35 fee and high APR
  (15.9)
• Mistercard No fee, but be sure to pay on time to
  avoid penalty rate of 29.9
• Not R.U.Kiddingme Card Catalog too limiting and
  usually more expensive

17
1,500 Family Vacation

• Save 60 per month
• Pay 30 per month on the credit card
• Pay 60 per month on the credit card
• Pay 67.50 per month for a bank loan for 2 years

18
The Best Choice?

• Saving 2 years to save enough, and the price
  will have gone up by then
• Credit Card 30/month _at_ 9.9 APR x 65 months
  1,950
• Credit Card 60/month _at_ 9.9 APR x 29 months
  1,740
• Bank Loan 67.50/month _at_ 5.9 APR x 24 months
  1,620

19
850 for Car Repairs

• Save, if he can work.
• Title Loan. 1,500 in cash in exchange for
  title, set of keys, and 100/month payment.
• Credit Card Cash Advance. Pay 18/month.
• WeFixItFast Card. 10 off cost of repairs

20
The Best Deal?

• Saving not really an option
• Car Title Loans NO!
• Credit Card Cash Advance. 18/month _at_ 21.9 APR
  x 117 months 2,106
• Credit Card. 18/month _at_ 21.9 APR x 110 months
  1,980
• Store Card. 75/month _at_ 21.9 APR x 12 months
  900

21
Where you borrow makes a difference
22
Credit Dangers

• Using credit cards to live beyond your means.
• Relying on creditors to set your credit limit.
• Carrying a balance on credit cards.
• Making only the minimum payment on credit cards.
• Buying the wrong items on credit.

23
Your Good Credit Depends on You

• Check your credit reportoften.
• Address negatives on your report.
• Avoid adding negative information.
• Shop around for the best terms.
• Use credit wisely.