Are You Credit Wise

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Did You KnowIt can take as many as 5 years to
repay a credit card balance of 1000 when you
make only the minimum payment each month?
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The Price is Right!!!
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Original Price 500
20 off 400
614.52

• Its on SALE!! But is it a deal?
• You charge the coat to a credit card with 18
  interest.
• Paying only the minimum payment each month would
  take 5 years to repay.

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Are You Credit Wise?

• Understanding credit means you understand money.
  
• Using a credit card means you have been loaned
  money to make a purchase.
• Credit cards offer -
• Convenience
• Payment in emergencies
• Protection
• They should NOT be used regularly for purchases
• you cant afford.

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It All Adds Up...

• If you spend 3.50 at WaWa every weekday
• In a 5 day work week, youll spend 17.50.
• During the month, youll spend over 70.
• Over a year, that totals 840 in coffee, subs,
  and soda.

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Credit Card Basics

• Pay more than the minimum due on credit card debt
  - youll reduce the time it takes to repay your
  credit card debt and save money by paying less
  interest.
• Call the credit card issuer if you anticipate
  being late.
• Do not miss a payment or pay late because fees
  and additional interest will be charged.
• Do not exceed the credit card limit.
• Know your interest rate.

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Your Credit Score

• Credit score is an evaluation of a persons
  credit worthiness. Think of it as a financial
  version of your college grade transcript.
• Credit scores change overtime.
• Scores range from about 350 to more than 800.
• Lenders review your credit report to determine if
  you are a good risk. Consumers with the best
  credit history get the best interest rates.

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A Negative Credit History

• Late payments, nonpayment and exceeding credit
  limits can stay on credit reports for 7 years.
• Bankruptcy can stay on your credit report for 7
  to 10 years.
• A poor credit history can
• Hurt your chances of renting an apartment or
  buying a house.
• Prevent you from being approved for a car loan or
  business loan.
• Affect your chances of getting some jobs.

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Tips on Improving Your Score

• Pay bills on time.
• Missed a payment? Get current and stay current.
• Keep balances low on credit cards and other
  revolving credit.
• Pay off debt rather than move it around.
• Dont close unused credit cards as a short term
  strategy.
• Dont open unnecessary lines of credit.
• Its okay to request and check your own score.

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Credit Report Best Practices

• Order a copy and review your credit report
  annually.
• Beware of credit repair companies offering to
  erase negative credit information.
• Dispute errors
• Make a copy of your credit report and mark items
  you suspect are incorrect.
• Write a letter to the reporting agency and
  explain the disputed items.
• Request an investigation and send copies of
  supporting documents.
• Tell the creditor in writing that you dispute an
  item.
• Keep copies of all correspondence.

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Protect Your Credit

• Never give your card number to anyone unless you
  are making a purchase or a reservation.
• Before making purchases online, check the
  merchants security protection.
• If your card becomes lost or stolen, contact the
  issuing bank or financial institution
  immediately.
• Before you move, provide your new address to the
  card issuer in writing.

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Get Your Credit Report

• Youre entitled to one free credit report each
  year
• Annual Credit Report www.annualcreditreport.com
  
• Major credit bureaus
• Equifax www.equifax.com
• Experian www.experian.com
• Trans Union www.transunion.com
• MyFico www.myfico.com

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Be Credit Wise!

• Budgeting
• Dont buy what you cant afford.
• Watch where and what you spend on.
• Credit Cards
• Pay more than the minimum payment.
• Dont miss payments.
• Know your interest rates and compare.
• Credit Reports
• CHECK yours for FREE once a year.