1. © Annie Patton Credit If someone does not have enough money to satisfy their needs or wants they have to borrow i.e. get credit. Next Slide

2. © Annie Patton I WANT I WANT A CAR, A HOLIDAY,A HOUSE, A BIGGER HOUSE. I WANT I WANT MORE THAN WOULD MAKE A POOR MAN RICH Next Slide Previous Slide

3. © Annie Patton Caution People need to be careful how much they borrow. Credit needs to be treated with Responsibility All loans have to be paid back with interest. So credit is expensive. Next slide Previous Slide

4. © Annie Patton Types of credit LoanOverdraftMortgage Credit card Previous SlideNext Slide

5. © Annie Patton Collateral They give you a loan, as they have your Collateral. I give them the deeds of the house, share certificates or a valuable picture etc. Next slide Previous Slide

6. © Annie Patton Deeds of No 4 New Street Art Secured Loan. I give Unsecured Loan I give nothing Next Slide Previous Slide

7. © Annie Patton Now I have the Loan!!! So what if I don’t repay it. Be warned banks have long memories, they will even tell on one, if one fails to make their repayments or fails to make their repayments on time. Consequences of not paying back a loan Next Slide Previous Slide

8. © Annie Patton Debt Ratio The percentage of ones wages that goes on loan repayments. Loan repayments ----------------------- wages X 100 If this is too high I will stop skipping 20% skip more stop skipping Or 40% or more if the mortgage is included stop skipping Next Slide Previous Slide

9. © Annie Patton A good shopper of credit Click here for more information Next Slide Previous Slide

10. © Annie Patton Credit Score (Credit History) In order to calculate your credit score the following will be looked at: Bill-paying history The number and types of accounts you have Previous late payments If you have applied for new credit recently Outstanding debt How long you've had existing accounts A credit score - helps predict how creditworthy you are, that is how likely it is that you will repay a loan and make the payments when due. Next Slide Previous Slide

11. © Annie Patton The three Cs of good credit Client (Score) History: How responsible you are about paying bills on time. Capacity: Your ability to pay back a loan based on your income and financial position. Collateral: Security for the lender in case you don't pay back the loan. A house, for example, would be used as collateral. Next Slide C C C Previous Slide Client Score Capacity Collateral

12. © Annie Patton Credit Useful, but needs to be treated with Care Previous Slide Next Slide

13. © Annie Patton How do you protect your credit score? Link to Webpage Previous Slide Next Slide

14. © Annie Patton Examples of a credit agreement are a mortgage, a car loan, a personal loans, a credit card agreements and hire purchase agreements. Credit Score Mortgage Car Loan Personal Loans Credit card Hire Purchase Previous Slide Next Slide

15. © Annie Patton Irish Credit Bureau Banks in Ireland register all credit agreements and the history of how the credit was repaid with the Irish Credit Bureau. When a bank receives an application for a credit agreement, they seek the applicant’s credit score with the Irish Credit Bureau. Note the Irish Credit Bureau does not make any decision re credit applications, they just provide the information to the banks. Next Slide Previous Slide

16. © Annie Patton Irish Credit Bureau Click here to enter the Irish Credit Bureau website. www.icb.ie Previous Slide Next Slide

17. © Annie Patton Credit Useful, but needs to be entered into with care and treated with responsibility Previous Slide