Virginia Beach Schools Federal Credit Union . Life & Credit . www.vbsfcu.org

What comes to mind when you think of money? Group Share… What comes to mind when you think of money?

Credit Basics How It Affects You True Cost of Credit

Credit Basics

What are the different types of credit? Group Brainstorm… What is credit? What are the different types of credit?

Virginia Beach Schools Federal Credit Union Revolving Credit (ex. Credit card) Borrow for multiple purchases without going over credit limit Repay what is owed each month Installment Credit (ex. Car loan) Borrow a specific amount of money to buy something now Make regular payments to repay over time by a set date Cash Loans Borrow a specific amount of cash to repay later by a set date Service credit (ex. Cell phone, electricity) Promise to pay for services used each month www.vbsfcu.org

Smartaboutmoney.org

Virginia Beach Schools Federal Credit Union A history of how you have used credit: Credit reports are used by creditors to see how you've managed previous credit obligations and to determine whether or not you're a good credit risk. It tells them whether it's a good bet that you'll pay off that big credit card payment or make payments on that new Cadillac right on time. Credit.com Personal Information Credit History Credit Report Inquiries Public Records www.vbsfcu.org

Identifying Information Trade Lines Credit Inquiries Public Record and Collection Items

Checking Your Credit Report… How many times a year should you check your credit report?

Credit.com

Where can you get credit? Group Brainstorm… Where can you get credit?

Credit Unions and Banks Car Loans Credit Cards Secured Loans Unsecured Loans Home Loans Home Equity Loans Student Loans

Credit Card Companies Secure way to pay for items Easy to use and often easy to get In the Mail, Over the phone, Online Rewards Points Gifts Cash Back Vacations

Department Stores Offered in stores Rewards Special discounts Sales Days Money back on purchases Discounts when you sign up Encourages you to spend more

Payday Lenders Short Term Loans Average term 14 days Fee/per $100 Higher Interest Rates Don’t check credit Can affect your credit if you don’t pay

How It Affects You

Let’s Try It… http://www.myfico.com/myfico/creditcentral/loanrates.aspx

Credit Card Companies

Trivia Percent of undergraduate students with a credit card 76% Average credit card debt of an undergraduate student $2,200 Percent of undergraduates who had no credit history 2% Percent of undergraduate students with 4 or more credit cards 48% Percent of incoming freshman who already have a credit card 39% Percent of students who pay their card in full each month 65% Source: http://www.statisticbrain.com/credit-card-ownership-statistics/

Group Activity Credit Card Name: Annual Percentage Rate (APR) for Purchases APR for Balance Transfers APR for Cash Advances Penalty APR and When it Applies Minimum Interest Charge Annual Fee Balance Transfers Cash Advances Late Payment Fee Over the limit Fee Returned Payment Fee

True Cost of Credit

$129.99 www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx

$499 www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx

$1100 www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx

$2500 www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx

$4228.99 www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx

What was your gold nugget?

Final Thoughts… 1.Think about how your actions now will affect your credit later 2. Think before you swipe 3.Don’t say yes to every credit card offer

Questions? Thank you! For more information from today's presentation please visit any VBSFCU Branch or www.vbsfcu.org amallinson@vbsfcu.org