1. BE CREDIT WISE This presentation will cover the basics of credit: what it is, how it can help and hurt your financial situation. How to responsibility handle credit and fix problems associated with credit. PRESENTED BY ACCEL

2. WHAT DOES CREDIT MEAN? HAVE IT NOW, PAY IT LATER What do you think? Credit is a way of having something now and paying for it later. Credit is neither a positive nor a negative thing; it can be wisely or poorly.

3. ADVANTAGES OF CREDIT 1)Pay for large items over time 2)Replaces need to carry cash 3)Helps build credit 4)Helps with emergencies or sales

4. DISADVANTAGES OF CREDIT 1)Commits future earnings 2)False sense of financial security 3)May include finance charges 4)Encourages over-spending

5. BEFORE YOU APPLY Ask yourself these two questions: 1. How much credit can I afford? 2. Do I currently have a spending plan?

6. BEFORE YOU APPLY Ask yourself these two questions: 1. How much credit can I afford? 2. Do I currently have a spending plan? HOW STABLE IS YOUR JOB? ODDS OF A LAYOFF? DO YOU HAVE EMERGENCY FUNDS?

7. TYPES OF CREDIT Borrowing from a friend Credit cards Charge cards Debit cards Secured cards Installment credit Mortgage loan Home equity loans

8. SHOPPING FOR CREDIT Annual Percentage Rate (APR) Finance charge Loan maturity Installment Loans Credit Cards Grace period Late payment fees Other charges

9. THE THREE C’S OF CREDIT 1)CAPACITY 2)CAPITAL 3)CHARACTER

10. STEPS TO ESTABLISHING CREDIT 1)OPEN A CHECKING OR SAVINGS ACCOUNT 2)APPLY FOR A LOAN THAT HAS COLLATERAL 3)OBTAIN A CO-SIGNER 4)APPLY FOR A SECURED CREDIT CARD 5)OPEN A CHARGE ACCOUNT AT A LOCAL DEPT. STORE

11. COST OF MAKING MINIMUM PAYMENTS What do you notice?

12. GET IN TOUCH CONTACT ACCEL Accel’s counselors would love to chat! Accel is a not for profit consumer credit counseling agency and Hud approved housing counseling agency headquartered in Farmington Hills, MI. www.accelservices.org 877-33ACCEL/877-332-2235

13. THANK YOU