Credit Josh Lienau, Natalie Skelton, Derek Lomibao, Erika Stauss, Cheyanne Decker.

Slides:

Advertisements

Similar presentations

Credit Chapter 10.

Advertisements

How To Improve Your Credit Score

Good vs. Bad Credit Credit – the ability to borrow money and pay it back later. Good credit means: Lenders want to loan money to you because you have.

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

Introduction to Business & marketing

RAISE YOUR CREDIT SCORE 50 POINTS IN FORTY-FIVE DAYS Bruce Gustafson (303) Crestline/Universal Lending.

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

 A record of your credit history that includes information about: ◦ Your identity ◦ Your existing credit ◦ Your public record ◦ Inquiries about you.

Establishing Credit Presented By:. What is credit? Credit is more than a plastic card you use to buy things --- it is your financial trustworthiness.

GOOD CREDIT IS THE TICKET DO YOU KNOW HOW TO ACHIEVE IT?

S ECTION 10.2 H OW TO Q UALIFY FOR C REDIT Goals: Explain how lenders judge your creditworthiness. Describe factors that determine your credit rating.

Math, Banking, and Credit Unit

Credit Scores and Scorecard Lending AGEC 489/690 Spring 2009 Slide Show #12.

The “Need-to-knows” for your financial future. * Do you ever want to buy a car? * Do you ever want to own your own home? * Do you know how debt can impact.

What is Personal Finance? Financial management is a critical part of everyday life. Personal finance is learning how to manage our money to get most out.

Credit Intro to Credit & Establishing Good Credit.

© Family Economics & Financial Education –Updated April 2009– Credit Unit – Understanding a Credit Card Funded by a grant from Take Charge America, Inc.

© 2006 Consumer Jungle Credit Scores & Reports. Learning Target I can explain what can affect my credit score and how to improve it. © 2006 Consumer Jungle.

Credit Wisdom. Managing Money & Credit: A Lifelong Skill.

Happy Thursday! 1. Complete the review questions on the back! 2. Have out part 8 & 9. I will be checking that for completion. 3. We are going over Credit.

CREDIT How do you build credit? Mr. Jones and Mrs. Smith make the same amount of money, but on loans, Mr. Jones pays more. Why? What may determine if you.

The Importance of a Good Credit Score and How to Read a Credit Report

You and Your Credit Score FICO. The Score The most widely used credit score is the FICO Score, the credit score created by Fair Isaac Corporation. Lenders.

Forbes.com. Make payments as early as possible. Late payments will negatively impact your FICO score. The longer you pay your bills on time, the better.

Review of presentations Credit, Finance, Credit cards, Savings Accounts, Payroll.

1. 2 Welcome  3 rd of 16 Sessions No cost to participate.  Financial Support: FINRA Foundation & United Way Worldwide  Solid Finances Webpage: 

+ Credit in America Chapter 16 Credit Management Unit 4.

CREDIT HISTORY & SCORES. CREDIT REPORTS  3 Credit Bureaus receive and maintain information on consumers: Experian TransUnion Equifax  Get a copy of.

USING CREDIT. Managing Money & Credit: A Lifelong Skill.

Financial Literacy Education III: Credit and Credit Cards Fall 2010 Online Version for Program Course Credit

CREDIT – Part 2 Business Issues. Credit Cards Paid over a variable amount of time Finance charge (interest) is called annual percentage rate (APR) expressed.

Unit 7: Credit- You’re in Charge?

Buy Now Pay Later….  How to analyze the advantages & disadvantages of consumer credit  How to distinguish among various types of consumer credit  How.

 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.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

SCORE SOME POINTS UNDERSTANDING AND RAISING YOUR CREDIT SCORE.

Credit Reports. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts.

© Family Economics & Financial Education – Revised October 2004 – Credit Unit –Understanding Credit Reports Funded by a grant from Take Charge America,

CREDIT RATING CREDIT RATING& CREDIT REPORTS. Credit Reports A credit report is a document which includes information on your level of indebtedness and.

FIXING Your Credit Objectives: Understanding how credit scores are determined. Understanding how consumers actions impact their credit scores.

Credit and Credit Cards Good Credit Bad Credit No Credit Good Credit Bad Credit No Credit.

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

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 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.

Give Yourself Some Credit Understanding Your Credit Report Student Name - Economics 101.

Student Loans And Credit: An Overview. Student Debt The Class of 2013 is the most indebted ever with 70% of graduates carrying an average debt of $35,200.

The Three C’s of Credit Objectives: – Students will be able to describe the “Three C’s of Credit (Capacity, character, and collateral) and factors used.

How Credit Score is Calculated?. Credit score calculation Model.

Jeopardy Begins with c Loans Poor credit Consumer Credit consumer Finance Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final.

Credit Score Based on the articles, “How Credit Scores Work; How a Score is Calculate?” and “Managing Your Credit Score” from Personal Finance Literacy,

What’s a Credit Report? From age 18 on, agencies collect data about your spending habits. Monitor your ability to handle risks (i.e. loans I installment.

10 Points Question- What is the definition of Character?

Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.

Establishing Credit Presented By:. Credit is more than a plastic card you use to buy things --- it is your financial trustworthiness. What is credit?

Lesson 7-2 Getting Started with Credit Learning Objectives: - Compare the sources of credit - List and explain the benefits of credit.

Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.

UNDERSTANDING YOUR CREDIT REPORT Student Name - Economics 101 Give Yourself Some Credit.

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.

Types of Credit. Loans Borrowing a specific amount for a certain period of time.

Credit The Good, the bad, and the ugly. CREDIT CREDIT CAN MAKE OR BREAK YOUR FUTURE PLEASE PAY ATTENTION TO THIS IMPORTANT LIFE LESSON – IT IS SERIOUSLY.

Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.

Why Credit Matters?. Do Now  What was your last purchase and how did you pay for it? Did you use cash, debit credit or check?  What are the differences.

How To Improve Your Credit Score Federally insured by NCUA Great Rates. Personal Service. chevronfcu.org 

Credit Scoring and Scorecard Lending

How To Improve Your Credit Score

Unit 10: PFL Credit & Cards.

Credit Scores What is a FICO Score??.

WHY CREDIT? Financial Unit

MoneyCounts: A Financial Literacy Series

Presentation transcript:

Credit Josh Lienau, Natalie Skelton, Derek Lomibao, Erika Stauss, Cheyanne Decker

What is a Credit Score? A credit score is a three-digit number assigned to a person that indicates to lenders their capacity to repay a loan.

Types of Credit Scores Equifax- A bureau that reviews, reports, and maintains consumer credit files. Experian- Provides information,analytical tools, and marketing services to organizations and consumers to help manage financial decisions. Transunion- Provides credit information and information management services.

Factors that go into a Credit Score Payment history Amount of debt Length of credit history New credit Type of credit in use Utilization Available Credit

How does one establish good credit? 1. Pay bills on time 2. Keep a job, don’t jump around 3. Stay in one place 4. Keep debt low 5. Check your budget often and stick to it 6. Don’t let your credit card go unused 7. Open a bank account for a long length of time

How does one with bad credit improve their credit? 1. Reduce amount of debt you owe 2. Get current and stay current on bill payments 3. Avoid jumping from credit card to credit card 4. Get out and stay out of debt 5. Keep credit card balances low

What types of companies look at a credit score? Banks,car dealerships, mortgage companies, phone and electric companies, employers for companies,

What causes credit scores to go up or down? Down: closing credit card accounts; missing payments; over- utilization of available credit card limits; Ex: excessive shopping for more credit because of maxing out all other credit cards Up: keep using your credit cards, but wisely; pay bills and payments down regularly; get rid of debt; avoid excessive credit; have a range of credit types(ex: having larger loans such as a mortgage or for a car)

How have banks and companies changed their lending policies in the last 7-10 years? Before, banks did not have a collateral on any loan( say something about how credit score doesnt matter. Banks now a days require a credit score but if it is a low score… the bank will ask for a collateral (assets) if you fail to pay the payments by the due dates.

What is the right amount of credit cards to have? Five credit cards is the right amount to have because each of them (saying they are VISA, MasterCard, or American Express) each have a $20,000 capacity and with five that means that you’ll have $100,000 capacity, or buying power.

Should you carry a balance on these? Yes all five of the credit cards should have a balance on them and have more because if you do not have a balance you have to have the ability to pay the charges on the card after you buy a item.

If you haven’t used a credit card in a long time should you keep it open? Yes, you should keep it open because if closed, it can ruin your overall credit score which can impact how other companies treat you as a customer.

Extra information Credit score does not go with just a person but full on companies. If you fight a credit card bill, your credit score can go down. A good credit score is 750 and above Not everybody has a credit history (young, or not applied for credit) Credit score and report (use) are different FACT act allows you to see your credit report for free You can have as many credit cards as you want but do not open them too frequently because they count as 10% of your overall credit score. Having multiple names on a credit card can lower your credit score.

Employers use your credit score when you apply for a job. Your credit score can affect the amount on your auto insurance payments. Maxing out your credit card does not hurt your credit score FICO says it can lower it. FICO is an American public company that provides analytics and decision making services that help financial services companies make high volume decision. If you pay the bare minimum on a payment your credit score does not go down. FICO stands for Fair-Isaac-Corporation Extra Information (cont.)