1. APPLICATION PROCESS, CREDIT BUREAU, CREDIT DOCUMENTS

2. CREDIT APPLICATION CREDIT BUREAU STATEMENT OF ACCOUNT

3. Credit Application Process Creditors need to be assured of 2 things: Ability to Repay and the Willingness to do so The 3 C’s of Credit Character - Honesty and Willingness to Repay Capacity - Ability to Repay Capital - Value of the Borrowers Possessions

4. Credit Applications Fill out completely, accurately, and honestly Documenting Credit Data Provide lender with references to ensure accuracy Actions to Establish Credit Ex.) Checking and Savings, Small Credit Purchases with Payments made in full, Strong Employment Record, and Earnings

5. Credit Bureaus Gathers Information on Credit users Sells information to businesses and institutions offering credit, such as banks, finance companies, and retail stores. Creates a credit report showing debts owed, how often credit is used, and whether debts are paid on time.

6. The 3 Major Credit Bureaus

7. Credit Documents Credit Contracts Know What You are Signing Questions p. 466 Example – Terms and Conditions of Credit Card https://www.wellsfargo.com/credit_cards/visa/terms Statement of Accounts Summary of your account, including interest rate, minimum payment, the balance, & transactions Accuracy of Records Helps avoids credit issues, and extra fees Avoiding Fraud Verify payments and eliminate loss or theft