3. 1. Open a savings account. Parents may be asked to cosign if minor 2. Open a checking account - Provides convenient method of paying bills 3. Open a store credit account - Parents/cosigners….promises to pay back if borrower fails 4. Get a small loan 5. Apply for a credit card

4. 1 Minnesota (718) 2North Dakota (715) 3South Dakota (714)… 10 Wisconsin (707) Governing.com

5.  Your Payment History (35%)  How you are currently making your payments  Accounts in collection or past due (and how long)  Public records (bankruptcy, child support, etc.)  Your Overall Debt (30%)  How much you owe on all your accounts  How much credit you have available to use

6.  Your Credit Account History (15%)  When you opened your accounts  How recently you applied for new credit  Recent good credit history following bad  Types of Credit (10%)  Different types of credit accounts you have  Total number of accounts you have  New Credit (10%)

7.  Credit score: helps creditors decide “if I give this person a loan, how likely is it that I will get paid back on time”  FICO score (Fair Issac)  300-850  If 725<…5% chance of being 90+ days late on payment over next 3 years  If 550…70% chance of being 90+ days late on payment over next 3 years

8.  FACT law- Fair and Accurate Credit Transactions Act (2003)  Free copies of credit report each year from 3 major credit agencies Equifax, Experian, and TransUnion Website: www.annualcreditreport.comwww.annualcreditreport.com

11. NEVADA660 TEXAS 667 MISSISSIPPI668

12. 687 Credit Score range: 300-850

14.  You applied for credit under different name (Robert and Bob)  Someone made a small error in reading or entering information  You gave inaccurate social security number when filling out application  Loan or credit card payment were inadvertently applied to the wrong person

15. 1. Get better credit cards 2. Pay all your bills ON TIME 3. Lower the balances on your credit cards 4. Pay off debt rather than move it around 5. Make sure your credit report is accurate

16. 1. Missing payments (regardless of the $ amt) 2. Credit cards at capacity 3. Closing credit cards out 4. Opening numerous credit cards in a short time 5. Shopping for credit excessively 6. More revolving loans in relation to installment loans

17.  Files update continuously, and information stays in the file for 7 years  Bankruptcy information stays in file for 10 years

18.  Fully enacted by February 2010  Rules include…  45 days notice to change certain terms  Bill must include how long it will take you to pay off balance if you make just the minimum payments  No interest rate increases in 1 st year (unless there is an intro rate or you are 60+ days late on payment)  Interest rate hikes only apply to NEW purchases

19.  Due date always on the same day of the month (ex: 15 th of the month)  Limited credit to adults under 21  Credit card companies must stay 1000 feet from college campuses if they are offering free gifts  Late fees capped at $25 if you are late once or less every 6 months  Gift cards can’t expire sooner than 5 years from date issued

20.  1968 Consumer Credit Protection Act  Also known as Truth-Lending Law Consumers must be fully informed of cost of using card Includes cash price, finance charge, APR, down payment and amount of loan  Fair Credit Billing Act  Creditors must resolve billing errors within specified period of time  Fair Debt Collection Practices Act  Designed to eliminate unfair and abusive collection practices by debt collectors.

21. 1. Name one type of “good” debt. 2. Name one type of “bad” debt. 3. Mary’s credit score is 720. Moe’s credit score is 650. Name two possibilities of why Mary’s credit score is higher than Moe’s. 4. Your credit score is 600. You apply for a new job, and the employer checks your credit score. What does your low credit score tell a future employer about YOU? 5. Name one change that came from the Credit Card Act of 2009, and explain why it’s a positive change for consumers.