By Lonnie R. Mathews. Lonnie R. Mathews Who is American Consumers The average salary in the U.S is $50,233.00 The average consumer has 13 credit cards.

Slides:

Advertisements

Similar presentations

Your Name – Your Business Helping People Improve & Protect Their Credit Credit Concepts I.

Advertisements

Understanding Your Credit. There are three major credit reporting agencies in the United States that maintain records of your use of credit and other.

Lesson 9 Fixing Your Credit.

Credit Overview Brainwasheducationonline.com. CREDIT CONTROLS OUR LIVES Limits or expands our financial stability Increases or decreases our quality of.

Introduction to Business & marketing

Credit Records and Laws

HOW TO QUALIFY FOR CREDIT CH 10, 10.2 How to get credit.

Credit You're in Charge What is Credit ??? Credit is an arrangement to Receive cash, goods, or services now and pay for them in the future!

GOOD CREDIT IS THE TICKET DO YOU KNOW HOW TO ACHIEVE IT?

PART 2: MANAGING YOUR MONEY Chapter 6 Using Credit Cards: The Role of Open Credit.

So What is Credit Anyway? The truth about credit and credit reports.

CREDIT HISTORY & SCORES. CREDIT REPORTS  aka: credit history  3 Credit Bureaus receive and maintain information on consumers: Experian, TransUnion,

Understanding Credit Reports & Credit Scores Presented by Rich Call Consumer Credit Counseling Service.

A Four Corners Activity. What is a “credit report?” How does someone’s credit report impact his or her financial opportunities?

Staying on Top: Credit Reports and Scores. What’s in Your Credit Report? Personal identification information Name, address, date of birth, SSN, employment.

CREDIT How do you build credit? Mr. Jones and Mrs. Smith make the same amount of money, but on loans, Mr. Jones pays more. Why? What may determine if you.

The Importance of a Good Credit Score and How to Read a Credit Report

You and Your Credit Score FICO. The Score The most widely used credit score is the FICO Score, the credit score created by Fair Isaac Corporation. Lenders.

1. 2 Welcome  3 rd of 16 Sessions No cost to participate.  Financial Support: FINRA Foundation & United Way Worldwide  Solid Finances Webpage: 

FINANCIAL ROADMAP. AGENDA  Credit cards and interest  Student loans  What happens if you don’t pay: Credit scores  Taking control of your money.

© 2006 Consumer Jungle Credit Scores & Reports. Are you Creditworthy? Have you ever borrowed money? Did you pay it back? Did you pay it back quickly?

CREDIT REPORTS How important is your credit score? What do we already know? What do we want to know? When would a credit report get pulled?

To Your Credit 1. 2 Purpose To Your Credit will: Show you how to read a credit report. Help you build and repair your credit history.

Unit 4 Consumer Credit Part 5 Credit Reports Dollars and Sense.

Credit Card Debt & Credit Scores How to Use Them, But Not Abuse Them.

 the ability to borrow money in return for the promise of REPAYMENT  Before using credit you should ask your self:  Is it a want or a need?  Do you.

Credit Reports Take Notes. Cost of CarInterest Rate# of PaymentsMonthly Payment $ 25, %60($438.19) $ 25, %60($460.41) $ 25, %60($483.32)

7.4.2.G1 Credit Reports Advanced Family Economics & Financial Education The Essentials to Take Charge of Your Finances.

Do Now10/30 & 10/31 Chapter 17 SLID E 1 Respond to the following in your notebook: As a teenager, you would like to get started in establishing a good.

Rating Your Credit and Help for Credit Problems. What is your credit score? A score that tells everyone if you are a good risk Credit bureaus sell credit.

Credit Reports. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts.

2 What Does it Mean? Determine how much money you can borrow, and how much interest you’ll pay. Each score is specific for each bureau Scores range from…

© Family Economics & Financial Education – Revised October 2004 – Credit Unit –Understanding Credit Reports Funded by a grant from Take Charge America,

1.4.2.G1 Credit Reports and Credit Scores Take Charge of Your Finances.

Credit, Credit Cards, Scores and Compound Interest Today, you will need: Spirals, writing utensils, brains. Please, and thank you.

CREDIT RATING CREDIT RATING& CREDIT REPORTS. Credit Reports A credit report is a document which includes information on your level of indebtedness and.

FIXING Your Credit Objectives: Understanding how credit scores are determined. Understanding how consumers actions impact their credit scores.

2.6.1.G1 Credit Reports and Scores Take Charge G1 © Take Charge Today – August 2013– Credit Reports and Scores– Slide 2 Funded by a grant from.

“The entire essence of America is the hope to first make money—then make money with money—then make lots of money with lots of money.” Paul Erdman.

Credit Cards. When thinking of getting a Credit Card follow the Three C’s: Character: Will you repay the debt? How you used credit before? Do you pay.

2.6.1.G1 Credit Reports and Scores Advanced Level.

The Three C’s of Credit Objectives: – Students will be able to describe the “Three C’s of Credit (Capacity, character, and collateral) and factors used.

What’s a Credit Report? From age 18 on, agencies collect data about your spending habits. Monitor your ability to handle risks (i.e. loans I installment.

10 Points Question- What is the definition of Character?

Credit – You’re in Charge.  Credit – the ability to borrow money in return for a promise of future payment. ◦ Credit has the opposite trade-off as saving.

CREDIT HISTORY & SCORES. CREDIT REPORTS  aka: credit history  3 Credit Bureaus receive and maintain information on consumers: Experian, TransUnion,

How to establish, use and protect your credit Discussion Topics 4 What is a creditor? 4 What is a debtor? 4 What is a credit history? 4 What is a credit.

Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.

2 Table of Contents  Personal Identification Information  Trade Lines or Payment Records  Public Record and Collection Items  Inquiries  Consumer.

Understanding Your Credit Score Central Piedmont Community College TRiO Student Support Services Financial Literacy Series Workshop.

Chapter © 2010 South-Western, Cengage Learning Credit Records and Laws Establishing Good Credit Evaluating Credit and Laws 17.

Credit  When goods, services, and/or money is received in exchange for a promise to pay back a definite sum of money at a futre date.  Lender: the person.

2.6.1.G1 Credit Reports and Scores Advanced Level.

Chapter © 2010 South-Western, Cengage Learning Credit Records and Laws Establishing Good Credit Evaluating Credit and Laws 17.

© Take Charge America Institute – September 2008 – Workshop Guide – Understanding Credit Reports Advanced Funded by a grant from Take Charge America, Inc.

How To Improve Your Credit Score Federally insured by NCUA Great Rates. Personal Service. chevronfcu.org 

CREDIT: BUY NOW, PAY LATER. It’s important for all of us to establish good credit. 28% of students with a credit card don’t repay the entire balance off.

FICO Your Credit Score FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.

Obtaining Credit.

WED. March 29, 2017 TODAY’S AGENDA

Do Now 12/7/16 On a half sheet of paper answer the following:

Understanding Credit Reports Essentials Advanced Level

© 2014 Junior Achievement USA, M1205 – Debit and Credit PowerPoint

Understanding Credit Reports

Build Your CREDIT = Build Your ASSET

Credit Reports and Credit Scores

Credit Reports and Scores

Workshop Goal Learning Objectives

Presentation transcript:

By Lonnie R. Mathews

Lonnie R. Mathews Who is

American Consumers The average salary in the U.S is $50, The average consumer has 13 credit cards The average Credit card debt is $8,562 The average car loan amount is $23,801 The average house payment is $684 The average car payment is $442

BUILD to establish, increase, or strengthen (often fol. by up): to build a business; to build up one's hopes, build wealth

Do This! Annual Income $ X 4 Years Now that you have that figure in mind how is your life going to be change four years from now? --For better or For worse--

Wealth

POINTS of POWER Discover where you are financially Discover where you want to be financially Discover how to get where you want to be financially SMSL

Know where you are Calculate your NET WORTH Assets – Liabilities = Net Worth

Track your spending Know where you are

Know where you want to be “If you don’t know where you are going how do you know when you get there?”

Know where you want to be Set realistic GOALS!! Goals should be: Specific Measurable Achievable Relevant Time

Types of GOALS

“The definition of insanity is doing the same thing over and over and expecting a different result” – Albert Einstein

Develop a BUDGET by changing your habits! Know where you want to be On PAPER, on PURPOSE!

BUDGETING TOOLS Know where you want to be On PAPER, on PURPOSE! SMSL

Know how to get there

STOP procrastinating “To conquer life we must first conquer ourselves”

Know how to get there Stay COMMITTED!

Understanding Your Credit

Credit Reporting Agencies (CRA) Currently there are three CRA’s these companies make money by compiling and reporting financial information about consumers. The information is sold to institutions that need to make financial decisions about individuals

Equifax Experian Trans Union The Big Three

Your Credit Report

Getting your report

Identifying Information The information contained in this section comes from the application that is filled out supplied to lenders from you. This information is NOT used in scoring only for identification purposes. The information in this section includes: Name Address Social Security Number Date of Birth Employment information

Trade Lines Lenders report your account information in this section, they report each account you have, the type of account (bankcard, auto loan, etc), the date opened, credit limit or loan amount and most importantly your PAYMENT HISTORY. This section is usually rated on a scale from 1 to 10 1 = paid on time 2 = 30 days late 3 = 90 days late 9 = charged off

Your Credit Report Because the are three major CRAs you actually have three or more credit reports. Each agency formats the information they have on file differently. However each report will have the information broken into four main sections: Identifying Information Trade Lines Inquires Public Record & Collections items

Every time you apply for credit you authorize lenders to ask for your credit report. Lenders are interested in knowing if you are actively looking for more credit and why. Inquires are listed on your report for two years, this list tells everyone who has requested your report during that time period. This list is further broken down into: voluntary inquiries involuntary inquires Your Credit Report

Public Record & Collections The Credit Reporting Agencies also report information from state and county courts. Information like liens, bankruptcies, foreclosures, etc.. Information from overdue debt collectors is also on your report

Common Errors When there is an error on your credit report this information is usually do to human error. This typically happens because: You applied for credit under a different name. Someone made a clerical error in reading or entering names and addresses Inaccurate social security number give Similar names (Sr, Jr, II, or III) Debt applied to the wrong account

Your FICO score

When determining your credit worthiness lenders also use a score to determine the risk of doing business with individuals. The score used to rate your credit risk is called your FICO® score. This three digit number Your score ranges from:

Your FICO score WB Pg 6

The FICO® Scores are calculated from several different credit data in your reports. Which means that an individual could have three different scores from all three agencies Individuals credit scores are based on five categories: Payment History35% Amounts Owed30% Length of Credit15% New Credit10% Types of Credit10% Your FICO score

Please Note A score takes into consideration all these categories of information, not just one or two. Your score considers both positive and negative information in your credit report. Your FICO score only looks at information in your credit report. The importance of any factor depends on the overall information in your credit report.

Now what!!! Stay on TOP! Get informed (minding your money)

“Obstacles are opportunities waiting to happen”