Consumer Credit Basics

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Consumer Credit Basics

• Use credit wisely to enjoy
• personal financial health.

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Consumer Credit Basics

• The benefits and costs of using credit
• Basics concepts in consumer lending
• Credit scores
• Using credit wisely

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Use Credit Wisely

• Build credit
• Big items house, car, college
• Convenient safe
• Emergencies

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Use Credit Wisely

• Easy to live beyond your means
• Easy to get into credit trouble
• Hard to get loans for big items or
  emergencies with bad credit

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Credit 101
Installment or Revolving Secured or Unsecured
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Credit 101
The 3 Cs of Credit 1. Capacity 2. Capital 3.
Character
Installment or Revolving Secured or Unsecured
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Credit 101
The 3 Cs of Credit 1. Capacity 2. Capital 3.
Character
Installment or Revolving Secured or Unsecured
Credit Score
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Credit Score
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Credit Score
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Credit Score
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Use Credit Wisely

• Pay on time
• Pay in full or more than minimum
• Evaluate purchases
• Avoid fraud

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Use Credit Wisely

• Pay on time
• Pay in full or more than minimum
• Evaluate purchases
• Avoid Fraud

• Over limit fees
• Convenience fees/interest
• Cash advance

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Credit Help

• Communicate with lenders
• Talk to a financial counselor
• Work out a budget
• Prioritize debts

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MCUL Financial Education

• MCUL Consumer Financial Education Library
• Financial Health course
• Lovemycreditunion.org
• CU Village Financial Resource Center