1. Managing Your Budget and Credit Tips Presented by: Janet Harrison Apprisen 614-552-2222 www.apprisen.com Presented by: Melissa Blount-Garner Fifth Third Bank www.53.com

2. Basic Tips to Manage Your Finances Determine Your household net income Confirm your fixed expenses Track Your variable expenses Account for your periodic expenses Evaluate lifestyle habits-needs versus wants Develop a written spending plan-write it down Look at it, review it often-each month

3. Americas Savings Rate

4. Level of Credit Card Debt in America

5. 3 Major Credit Reporting Agencies Equifax – www.equifax.comwww.equifax.com 800-685-1111 TransUnion – www.transunion.comwww.transunion.com 800-888-4213 Experian – www.experian.comwww.experian.com 888-397-3742

6. Free Credit Reports Current Law - 2005 : one free copy of credit report from each of three credit bureaus every year. www.annualcreditreport.com 1-877-322-8228 Annual Credit Report Request Service P O Box 105281, Atlanta, GA 30348-5281 Credit score does not come automatically with the free report.

7. 5 Parts to a Credit Report Personal information Credit Summary Account History Public Record Information Credit Inquiries

8. Credit Scores A number developed from a calculation using the information from your credit report. Most widely used is the Fico Score Scores range from 300-850 Other scoring models: Beacon - Equifax Empirica – TransUnion Plus - Experian New Score introduced in 2006 called Vantage Score Scores range from 501 - 990

9. Five Ingredients of a FICO Score

10. Sample Loan With Credit Scores How a good FICO score can save you money: $10,000 used car loan for 36 months Can result in an extra $2196 in payments over the 3 years $362 monthly payment $301 monthly payment FICO score of 590 Interest rate of 18.128% FICO score 720+ Interest rate of 5.377%

11. Improving Your Score Pay bills on time Reduce debt Keep balances low / credit limits Apply for & open new lines only when you need them. Check your credit report for accuracy and clear errors as soon as possible.

12. Types of Credit (Secured/Unsecured) 1.Installment Loans Car, Boat, (Secured) Generally, a fixed payment for a fixed amount (includes principal and interest) for a fixed amount of time Example: Car loans can be financed from 36 – 72 months. Be vary cautious about financing for longer terms. 2. Mortgage loans (Secured) 15 – 30 years Fixed Adjustable Interest only Equity Loans 3. Revolving Credit-Unsecured Credit cards Store department cards Home Equity Lines of Credit Costs to consider Interest Rate Fees Grace Period

13. Bad Debt-Does Not Build Wealth Debt that doesnt help to build assets Debt at high interest rates Debt that is incurred for disposable items that lose value (depreciating items) Purchasing more than you need

14. Good Debt-Builds Wealth Debt can help build assets Home purchase Rental properties Purchasing an appreciating asset Debt can lead to better opportunities School loans Transportation Business tools

15. 7 Steps to Manage your Money Wisely Know what you owe Live within your means Spend less than you earn Borrow only what you can afford Recognize the warning signs of financial stress Check your credit report annually Guard against Identity Theft

16. Additional Resources www.apprisen.com www.debtadvice.org www.bankrate.com www.quicken.com www.money.msn.com www.credit.com www.creditkarma.com