1. Credit -The ability to borrow now and pay later, usually with interest. 1 Mrs. Reed's Work and Family Studies

2. Money and Economics Visual Organizer Mrs. Reed's Work and Family Studies 2

3.  Borrow only what you can repay on time  Read and understand any contract  Notify creditor(person/company lending) if you cannot meet payments Mrs. Reed's Work and Family Studies 3

4.  Character – Will you repay the debt? Credit use, credit report/history, honesty  Capital – What if you don’t repay the debt? Collateral(secured vs. unsecured) What can creditor take in payment if you can not pay.  Capacity – Can you repay the debt? Steady job, loans, living expenses, dependents Mrs. Reed's Work and Family Studies 4

5.  Establish a steady work record  Pay bills promptly  Open a successful checking and saving account  Apply for small loans or credit cards( Co- signers) Mrs. Reed's Work and Family Studies 5 Co-Signer- One who agrees by signing with you on loan/credit card application to pay if you do not.

6.  Single – Payment Credit Pay in a single payment within a given time period  Examples: Doctors, utilities, paycheck lenders  Installment Credit Pay in two or more regular payments of a set amount  Examples: Cars, mortgages, furniture, vacations  Revolving Credit Buy within a credit limit – minimum due regularly  Examples: Retail charge accounts, credit cards Mrs. Reed's Work and Family Studies 6

7.  Record of your credit history – Businesses, ect.  Three credit bureaus: Experian, Trans Union, & Equifax  Can affect : Purchase power Job even insurance rates Mrs. Reed's Work and Family Studies 7

8.  The 20-10 rule) 20: Never borrow more than 20% of yearly income 10: Monthly payments should be less than 10 of monthly net income **Mortgages don’t count. Mrs. Reed's Work and Family Studies 8

9.  Read Credit Card article and complete graphic organizer  Complete credit card bumper sticker follow Credit card Bumper Sticker Rubric. Mrs. Reed's Work and Family Studies 9

10.  Read Credit Card Article and complete graphic organizer  Choosing a Credit Card Activity. Mrs. Reed's Work and Family Studies 10