1. How to maintain good credit?

2.  Obtaining goods and services with a promise to pay for them from future income  to buy today and pay tomorrow  involves two parties, a lender and a borrower

3.  Sales Credit: to purchase goods and services from retailers, revolving credit  Cash Credit : money granted to use for a variety of purposes: Unsecured loans(no collateral) Secured Loans (Collateral) and Cash Credit (loans with Installments payment)

4.  Is a report card reflecting how well you use credit  Three sources; Equifax, Experian and TransUnion  Fair Credit Reporting Act; 1 free credit report a year

5.  3’s C--- Character: reputation of honesty Capacity: employment history Capital: financial worth  Creditor lend to people who can pay back!!

6.  Preferred Lenders: Most reliable lender; banks, credit unions and private loans  Non-preferred lenders: take advantage of people with poor credit; payday lenders, auto loan lenders and loan sharks etc….

7.  Annual Fees  APR (Annual Percentage Rate)  Interest  Minimum payment  Grace period  Charges  Credit limit  Features and services

8.  Read the fine print  Is it wise or unwise to use credit  Provide information about income, employment, credit history etc..  They will run your credit  Truth Lending Act; rescission (Companies) can cancel within three days.

9.  Understand your need to borrow  Identify and use the right type to credit  Know how you will pay back  Only use the amount of credit you can afford  Keep records  Consult creditors immediately if you have problems  Resolve billing errors

10.  No saving  Stressed and Worrying over money problems  Reached credit limits  Skip payments  Use cash advance to pay bill  Use credit for day-to day items  Open credit so you can reach credit limits  Agencies are trying to collect from you!!!

11.  Deal with the problem  Stop using Credit  Get help  Develop spending plan  Contact Creditors immediately Chapter 7– Must sell personal belonging to pay back Chapter 13– Can retain belongings but must have a repayment plan