1. Credit report
Lisa Patterson

2. CREDIT REPORT
A credit score = a number assigned by credit reporting agencies based on information from your credit report.
Higher scores = better credit
Good credit score = shows high probability of repaying loans on time
Allows for better interest rates on loans (i.e. mortgages)
Get a job = employers now review credit reports as part of employment decisions
Rent an apartment =landlords review credit reports
3 major companies Equifax, Experian, TransUnion which determine your credit scores

3. CREDIT REPORT
A credit report is a financial picture of who you are and it tells:
Whether you have made payments responsibly on time.
The amount of debt you have
If there is false or negative information about you in your public records

4. CREDIT REPORT

5. Credit Report Breakdown of credit score Payment History Amount of Debt
Length of Credit History and Types of Credit
New Credit
Utilization
Available Credit

6. Credit scores range from 501 to 990
CREDIT REPORT
Credit scores range from 501 to 990
A stands for someone who most likely would repay their loans
F a high-risk borrower is someone who most likely will be unable to repay their loans on time. Here are the score ranges:
(very low-risk) (low-risk) (medium-risk) (high-risk) (very high-risk)
= A = B = C = D = F

7. CREDIT REPORT You can purchase your credit score from the three credit reporting agencies:
Equifax or
Experian Experian ( ) or
TransUnion or A free Credit Report online at report.com to request a form. Or Toll free

8. Borrowing Basics
Brenda Lopez

9. Borrowing
At some point in our lives, we all come upon a situation where we must borrow money!
There are many different options and ways to borrow money, we must, however, make wise choices and be aware of the cost of each one. Which type of borrowing benefits our situation the most?

10. What Is Credit? "Good Credit" Credit is the ability to borrow money.
When you borrow money on credit,
you get a loan.
"Good Credit"
-Being a responsible borrower who makes loan payment on time to repay the money you owe.
-Having a good credit comes in handy when you try to borrow money at a later time.

11. Why Is Credit Important?
Credit is important because:
a. It can be useful in times of emergencies
b. It's more convenient than carrying large amounts of cash
c. Allows you make large purchases (e.g. car, house) and pay it over time
d. Can affect your ability to obtain employment, housing, and insurance based on how you manage it

12. Collateral Collateral is security you proved the lender.
Collateral is security you proved the lender.
Collateral ---> Guarantee ---> Cosigning

13. Secure loan does where the borrower offers collateral for the loan.
vs.
Unsecured loan is not backed by collateral

14. Asset is something of value that you own (e. g
Asset is something of value that you own (e.g. car, savings, house, investments, etc. )

15. Pay yourself first
Kunjae Shin

16. Contants Debit? Credit? Saving - SMART goal Interest Investing
- Stocks
- Bonds
- Mutual Funds

17. Debit Card Pro Cons Fund taken out of account immediately
like real money
Can only use $ in the account
quick reaction of the checking account
Cons
Fund taken out of account immediately
In case of dispute, merchant has your money
No same level of consumer protection like credit card

18. Credit Card Pro Don’t have to pay while in dispute Online purchases
No access to checking account
No interest cost (when you pay off monthly)
Cons
Monthly pay bill
Interest in calculated on the balance (10- 20%)
Need to apply and approve
Merchants indirectly pass on fees to consumers

19. Why saving? To approach goal Improve your standard of living
Learn to manage money
For emergencies

20. Saving tip Regular basis
Restaurant, coffee
Need?
Direct deposit or automatic transfer to saving
Pay your bills on time
Save any cash gift you receive
Avoid debt
Save change at the end of the day
Save tax refund
Join a retirement plan

21. Rule of 72 (lesly)

22. Saving options Individual development account (specific purpose) - IDA
Electronic transfer account (federal payment -> direct deposit) – ETA
College savings(529 plan)

23. Interest?
An amount of money financial institutions pay you for keeping money on deposit with them
Percentage
Calculated based on the money in your account
Compound interest (lesly)

24. Why investment? For long-term goals Your money grow fast than saving
Old age guarantee (no pensions)

25. Invest Option Stocks – well ownership share
Bonds – borrow from individual
Mutual Funds –

26. Power of compound and interest
Lesly Sandoval

27. The Power of Compound Interest
When you invest, you earn interest on your money. And then that interest earns interest. That’s called compound interest, and it’s how your account grows over time
Interest can be compounded
Daily
Monthly
Annually
The Rule of 72 teaches you how that works

28. THE RULE OF 72 Sometimes called the Banker’s Rule.
It is used to estimate the number of years it will take your money to double.
HOW IT WORKS:
Divide the interest rate you are currently receiving on your savings account. The result will give you an approximation of how long it will take to double your initial savings amount

29. FOR EXAMPLE:
$2000 at an interest rate of 4 percent. Divide 4 into 72 = 18.
In 18 years you will have $4,000. Every 18 years your $$$ will double.
Now, $2,000 at 9 % interest 72 / 9 = Every 8 years your $2,000 will double
Year 1 $2,000
Year 8 $4,000
Year 16 $8,000
Year 24 $16,000
Year 32 $32,000
If you’re grandmother gave you $2,000 as a high school graduation gift and you put it into a smart savings/investment vehicle, when you are 52 you will have $32,000!!!
You can also use this rule to estimate how much interest you would need to earn to double your money within a number of years

30. THE COST OF WAITING
100 people at age 65
54 dependent
36 working