MoneyWi$e Webinar: Good Credit MoneyWi$e Webinar Consumer Action and the National Community Reinvestment Coalition welcome you to this financial literacy webinar. –The training will start shortly.

MoneyWi$e Webinar: Good Credit Training overview  Introductions  About MoneyWi$e  Teaching Adults  Module I: Good Credit  Module II: Rebuilding Good Credit  Implementation  Materials & Evaluation

MoneyWi$e Webinar: Good Credit About MoneyWi$e  A joint financial education project of Consumer Action and Capital One  A unique and innovative financial literacy program that combines free multilingual publications, train-the-trainer materials, regional conferences and funding opportunities  Learn more at

MoneyWi$e Webinar: Good Credit MoneyWi$e Modules  Banking Basics  Elder Fraud  ID Theft and Account Fraud  Keys to Homeownership  Micro Business  Money Management  Personal Bankruptcy  Saving to Build Wealth  Teens and Money

MoneyWi$e Webinar: Good Credit Teaching Adults  A good teacher of adults –Is people-centered, more interested in people than things, more interested in individuality than conformity, and more interested in finding solutions than following rules.  The teacher must be understanding, flexible, patient, humorous, practical, creative and prepared.  *How to Teach Adults, William A Draves, The Learning Resource Network

MoneyWi$e Webinar: Good Credit Good Credit  Purpose: –To provide workshop participants with an understanding of what credit is, the impact of credit on one’s financial status, and skills for establishing and maintaining good credit  Objective is to learn: –How to establish credit –How to maintain good credit –How to request and read a credit report –What credit scoring is –What your rights as borrower are

MoneyWi$e Webinar: Good Credit Materials  Building and Rebuilding Good Credit brochure  Good Credit Leader’s Guide  Lesson Plan  PowerPoint Slides

MoneyWi$e Webinar: Good Credit What is credit?  Ability to borrow money or obtain goods by paying little or no money at the time of purchase.  Your promise to pay the original cost later or over time plus interest.

MoneyWi$e Webinar: Good Credit Why do you need credit?  Buying a home or renting an apartment  Getting a job  Getting phone service  Finance an automobile  Spreading out payments for expensive items  Qualify for insurance  Get a loan  Obtain a credit card

MoneyWi$e Webinar: Good Credit Bad credit  Unreliable in paying bills  Bills are paid late  Debts are abandoned  Filed for bankruptcy Good vs. bad credit  Good credit  Reliable in paying bills  Companies willing to extend credit

MoneyWi$e Webinar: Good Credit Borrowers’ responsibilities  Borrow only what you can repay  Read and understand the credit contract  Pay debts promptly  Notify creditor if you cannot meet payments  Report lost or stolen credit cards promptly

MoneyWi$e Webinar: Good Credit How can I get credit?  Establish an account –Ask a local company –Find a co-signer –Get a secured credit card  Use it responsibly for a year or two –Pay all bills promptly –Don’t bounce checks

MoneyWi$e Webinar: Good Credit Why is credit denied?  No credit history  Too much outstanding credit  Credit not handled responsibly in the past  Victim of fraud

MoneyWi$e Webinar: Good Credit What is a credit report?  Record your loans, credit cards, payments and outstanding debts  Lenders report your credit usage to companies called ‘Credit Reporting Bureaus’ –Equifax –TransUnion –Experian

MoneyWi$e Webinar: Good Credit What’s on your credit report?  Current and past payment information –On-time and late payments  Outstanding credit limits and balances  Information from public records  Names of companies who have asked a copy of your report

MoneyWi$e Webinar: Good Credit Who can get a copy of the report?  You  Only those who can prove a legitimate need –Banks –Credit card companies –Landlords or real estate companies –Employers

MoneyWi$e Webinar: Good Credit How can you get a copy?  –Experian, TransUnion, Equifax  You’ll need to provide this information: –Full name –Social Security number –Addresses for past 2-5 years, telephone number –Birthdate

MoneyWi$e Webinar: Good Credit The cost for your credit report  One free copy from each bureau each year.  Your credit report is also free if you’ve been denied credit in the past 60 days, based on your credit report.  Otherwise, the cost is approximately $9.

MoneyWi$e Webinar: Good Credit Activity - Credit profiles  Web Profile: Lupita  Poll: Score Lupita’s credit: –Poor –Passable –Good –Excellent  Poll: Do you think Lupita will get the loan?  Chat: Why do you think Lupita will/will not get her second car loan?

MoneyWi$e Webinar: Rebuilding Good Credit Rebuilding Good Credit  Improve Your Credit - Brochure  Rebuilding Your Credit - Guide  Lesson Plan with Activities  PowerPoint Slides

MoneyWi$e Webinar: Rebuilding Good Credit Rebuilding Good Credit  By the end of the training participants will understand: –How poor credit can prevent them from doing certain things. –That it is never too late to start to rebuild good credit. –What information on a credit report is seen as negative. –Some ways to improve one’s credit.

MoneyWi$e Webinar: Rebuilding Good Credit Damaged credit  What does bad credit mean to you?  How can bad credit limit your life?  How do you know if you have bad credit?

MoneyWi$e Webinar: Rebuilding Good Credit Credit repair companies  Everything a credit repair company can do legally, you can do yourself –Credit repair companies charge money— sometimes lots of money –No one can legally remove accurate negative information from a credit report. –If you decide to work with a company, research its offer carefully.

MoneyWi$e Webinar: Rebuilding Good Credit Let’s evaluate some ads  Page 13 - Lesson Plan - Rebuilding Good Credit File –#1 BAD CREDIT? NO CREDIT? NO PROBLEM! –Guaranteed Loans! –Consumer Credit Counseling Service.  Poll: Would you respond to ad 1, 2 or 3?

MoneyWi$e Webinar: Rebuilding Good Credit If a collection agency calls…  Respond immediately if you don’t agree that you owe money.  Ask the collection agency to prove that you owe the money. –A collection agency can’t try to collect the debt while its validity is being checked out.

MoneyWi$e Webinar: Rebuilding Good Credit Rebuilding good credit  It takes time and patience to establish good credit.  Each person’s situation is different and lenders have wide-ranging requirements.

MoneyWi$e Webinar: Rebuilding Good Credit Ways to rebuild good credit  Pay your existing credit accounts on time  Apply for a credit card or small loan  Find a co-signer  Get a secured credit card

MoneyWi$e Webinar: Rebuilding Good Credit Activity: Secured Credit Cards  Let’s take a few minutes to compare secured credit card offers. - Page 17 - Lesson Plan  Poll: Which credit card offer has the most favorable terms?

MoneyWi$e Webinar: Rebuilding Good Credit Keeping your good credit  Review your credit report at least once a year.  Close unneeded accounts.  Pay your bills on time.  Apply only for credit that you really need.  If you divorce or separate, make sure that joint accounts are closed.

MoneyWi$e Webinar: Rebuilding Good Credit Implementation  MoneyWi$e: flexible, independent modules that can be tailored and combined to address the needs of your audience  All publications are free for non- profit organizations  Visit

MoneyWi$e Webinar: Rebuilding Good Credit Thank you for attending!  Please send us the evaluation!!  Consumer Action: