We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byIzabella Kenne
Modified about 1 year ago
Ford Credit—Credit Drives America
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. What is credit? Credit is a promise to repay an obligation.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. Who are the parties involved? A credit transaction involves at least two parties: The lender provides value in the form of cash, merchandise, or some other item of value. The borrower makes a commitment to repay what he or she has borrowed according to a pre-agreed schedule.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. How does a lender decide whether or not to give you credit? Lenders need to feel confident you will repay. Decisions to extend credit are usually based on the "Three Cs of Credit.”
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. What are the “Three Cs of Credit”? Credit—the borrower's willingness to pay Capacity—the borrower's ability to repay the obligation Character—the borrower's stability
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. What is “credit history”? Your credit history records your experience with credit including loans and credit cards. Late payments, delinquent payments, bankruptcies and court judgments are also recorded.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. Who keeps track of your credit? Credit reporting agencies
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. How does a credit reporting agency or credit bureau work? A credit reporting agency (or credit bureau) collects and maintains information about people's experience with credit. Lenders provide the agencies with payment history on the customer's accounts. In exchange, lenders receive credit data on applicants from the agencies so that they can decide whether they should grant credit to the applicant.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. Who are the credit reporting agencies? Three major credit reporting agencies are: EQUIFAX or EXPERIAN or TRANS UNION or
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. Why is a good credit history important? A good credit history is important because it shows your financial reputation. This can affect your chances to buy or rent a house or apartment, get a loan, or even get a job.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. How might you establish a credit history? Apply for a secured credit card. Secure a loan with a CD (Certificate of Deposit). Obtain a retail store credit card. Become an authorized user on your parents' account or another person's account. Remember to be responsible because the reputation and credit history of the other person is also at stake.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. How can you maintain a good credit history? Apply for one credit card at a time. Pay your bills when they are due. Pay more than the minimum balance on your credit cards each month. Avoid impulse purchases. Contact your creditors if you can't pay your bills — don't ignore your obligations.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. Should you check your credit history? People should check their credit history once a year to make sure that it is accurate.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. How do you check? Contact one of the three credit reporting agencies for a copy. They usually charge a fee.
©2001 Lifetime Learning Systems*, Inc. Created for Ford Motor Credit Company. What if there is a mistake? If you find a mistake, report it to the agency. They are required by law to investigate the claim, usually within 30 days.
Sample Credit Report
Credit History Your Financial Reputation. What is credit? Credit is a promise.
© Family Economics & Financial Education – Revised October 2004 – Credit Unit –Understanding Credit Reports Funded by a grant from Take Charge America,
Teacher Instructions 1.Print the lesson, 2.Display slide 2 with Procedure step 1 in the lesson. 3.Display slides 3 and 4 with Procedure step 4 to use as.
Credit – You’re in Charge. Credit – the ability to borrow money in return for a promise of future payment. ◦ Credit has the opposite trade-off as saving.
Chapter Explain how you can develop a credit history Examine factors to consider when deciding which credit card to secure Define three factors.
Applying for Credit Unit 3. Most lenders build their lending polices around the “five C’s of credit” Character – Will you repay the loan? Capacity.
Card A. Risk 12/ Lance L. Lancer12/12 Credit: History, Types, Dangers Chapters
INTRODUCTION TO BUSINESS & MARKETING CREDIT. Objectives Compare the types of consumer credit. Describe the advantages and disadvantages of using credit.
10 Points Question- What is the definition of Character?
Keys to Credit What is Credit? Buy now – pay later Financial tool Binding contract Buy now – pay later Financial tool Binding contract.
The promise to pay money in exchange for the right to receive goods and services now. Examples Personal Loans Mortgages. Credit Cards Lines of credit.
What you “look” like at the credit bureau What creditors see when they pull up your records.
What you need to Know! What does this mean? What about interest?
APPLICATION PROCESS, CREDIT BUREAU, CREDIT DOCUMENTS.
the ability to borrow money in return for the promise of REPAYMENT Before using credit you should ask your self: Is it a want or a need? Do you.
CREDIT IN AMERICA Personal Finance Chapter 16. Certain terms are commonly used to describe credit, its availability and its cost. Borrower: or debtor:
Credit Intro to Credit & Establishing Good Credit.
Credit Cards. When thinking of getting a Credit Card follow the Three C’s: Character: Will you repay the debt? How you used credit before? Do you pay.
By The Financial Fitness Association. What is Credit and Debt? 4 Cs of Credit Keeping Score with Your Credit The FICO Score Breakdown How to Rebuild Your.
Using Credit. Terms to know Credit Creditor Revolving Charge Account Installment Account Vehicle leasing Cash loan Collateral Cosigner Home equity loan.
Credit When goods, services, and/or money is received in exchange for a promise to pay back a definite sum of money at a futre date. Lender: the person.
© Family Economics & Financial Education –Updated April 2009– Credit Unit – Understanding a Credit Card Funded by a grant from Take Charge America, Inc.
Credit Basics. Some old stats 83% of college students have at least one credit card 45% of college students are in credit card debt –Average debt over.
MoneyWi$e Webinar: Good Credit What is credit? Ability to borrow money or obtain goods. Your promise to pay the original cost later or over time plus.
Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.
1.4.2.G1 Credit Reports and Credit Scores Take Charge of Your Finances.
Chapter 11. Credit – supplying of money, goods, or services at present in exchange for the promise of future payment Creditor – business that extends.
How to maintain good credit?. Obtaining goods and services with a promise to pay for them from future income to buy today and pay tomorrow involves.
1 Staying on Good Terms: Managing Credit and Debt OSFA Office of Student Financial Aid.
CALM. Able to buy needed items now and pay later. Don’t have to carry cash Creates a record of purchases More convenient than writing cheques.
Borrowing Wisely Senior Advisory Week of May 23, 2016.
CONCEPTS OF CREDIT PERSONAL FINANCIAL PLANNING DR. AA NEIDERMEYER.
CREDIT – Part 2 Business Issues. Credit Cards Paid over a variable amount of time Finance charge (interest) is called annual percentage rate (APR) expressed.
Do Now10/30 & 10/31 Chapter 17 SLID E 1 Respond to the following in your notebook: As a teenager, you would like to get started in establishing a good.
Teens 2 lesson seven understanding credit presentation slides 04/09.
Real Skills Real Experiences Real Life The NCCEE and the Financial Planning Associations of Charlotte and Raleigh gratefully acknowledge.
The Costs and Methods of Obtaining Credit Morgan Napier and Kaitlin Nelke.
Card A. Risk 12/ Lance L. Lancer12/12 Credit: History, Types, Dangers Chapter 10.
Personal Finance Credit Review JEOPARDY 100 Definitions Types of Types of Credit 4 C’s of 4 C’s of Credit Your Rights Credit Report Potpourri
Credit is an arrangement to receive cash, goods, or services now and pay for them later Financial institutions and merchants issue credit – called.
2.6.1.G1 Credit Reports and Scores Take Charge G1 © Take Charge Today – August 2013– Credit Reports and Scores– Slide 2 Funded by a grant from.
Teacher instructions: 1.Print the lesson, 2.Display slide 2 with Procedure steps 1 and 2 in the lesson. 3.Display slide 3 with Procedure step 4. Draw lines.
Learning About Credit Advantages and Disadvantages.
Going Into Debt $$$. Americans & Credit Credit allows people to own homes, improve their communities and purchase other items instead of waiting. Credit.
CREDIT: BUY NOW, PAY LATER. It’s important for all of us to establish good credit. 28% of students with a credit card don’t repay the entire balance off.
Credit, Credit Cards, Scores and Compound Interest Today, you will need: Spirals, writing utensils, brains. Please, and thank you.
CREDIT CARDS. Advantage/Disadvantages Your Credit Worthiness The 5 ‘Cs’ Capacity Character Credit History Capital Collateral The 5 ‘Cs’ Capacity Character.
HOW TO QUALIFY FOR CREDIT CH 10, 10.2 How to get credit.
© 2017 SlidePlayer.com Inc. All rights reserved.