1. Good Credit? Mrs. Van Camp Appleton East High School

2. Credit/ FICO Score What does my credit score mean? 300…………………..525………………..650……………*……..……750………………………850 You need help! Poor Fair Good You rock! US Median:723

3. Why is Your Credit Score Important? Financial Institutions –Determine APR Auto Insurers – Determine Premium Employers – Are you a worthy hire? Landlords –Are you a reliable tenant?

4. Students Credit Card Use (Midwest) Percent with Cards86% Average Number of Credit Cards4.9 Average Credit Card Debt$3,817 Zero Balance7% Balance $3,000-$7,00024% Balance Greater than $7,00016%

5. Advantages and Disadvantages of Credit Cards Advantages –Convenient –On-line purchases –Kick-backs –Can rent a car Disadvantages –Easy to overspend –Doesn’t seem like real money

6. Managing Credit After High School Pay Bills on time Pay more than the minimum Buy only what you can afford Limit the number of credit cards Pay off the balance every month Don’t take cash advances Be aware of: - Fees- Universal Default - 0%- Terms & Conditions

7. The Cost of Borrowing

8. Rachel and Eric RachelEric Promotional APR0% Nominal APR7.99%21% Minimum Monthly Payment $25.00 *promotional rate applies for first 6 months