Are You Credit Wise

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Did You KnowIt can take as many as 5 years to
repay a credit card balance of 1000 when you
make only the minimum payment each month?
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Its True Repeatedly making minimum payments
will increase the amount of time it takes to
repay your credit card debt and cost you more
money in interest charges.
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Do YouPay bills late or skip
payments?Bounce checks or overdraw your
account?Take extra jobs to pay your credit card
bills?Use one credit card to pay off
another?Call parents to help pay for credit
card bills?
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If Youanswered YES to any of these questions,
you should consider making changes to better
manage your money.
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Budgets
Managing Credit and Debt
Credit Reports
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Are You Credit Wise?

• Understanding credit means you understand money.
  
• Using a credit card means you have been loaned
  money to make a purchase.
• Credit cards offer -
• Convenience
• Payment in emergencies
• Protection
• They should NOT be used regularly for purchases
• you cant afford.

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Learn to Master Your Money

• DONT . . .
• Be shocked by your credit card statement.
• Avoid reading your credit card statement.
• Avoid phone calls for payment.
• Regularly ignore one bill to pay another.
• Use one credit card to make a payment on another
  card.

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Master Your Money

• DO . . .
• Know how much money you have.
• Know where you are spending it.
• Know how much you can set aside for savings.
• Create and follow a budget to help manage monthly
  cash flow.

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The Price is Right!!!
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Original Price 500
20 off 400
614.52

• Its on SALE!! But is it a deal?
• You charge the coat to a credit card with 18
  interest.
• Paying only the minimum payment each month would
  take 5 years to repay.

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Your Money
Managing Credit and Debt
Credit Reports
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Budgeting is Basic Math

• Write down your monthly income (take-home pay)
  after taxes (be sure to include scholarships,
  money from parents, loans).
• Subtract all expenses
• Include EVERYTHING.
• Analyze your habits.
• Take notes for a week on all purchases.
• Dont forget to pay yourself. Reserving funds for
  emergencies and special purchases is a good idea.

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Its a Balancing Act
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Budgeting Tips

• Balance your budget.
• Cut expenses to make your budget work.
• Do NOT charge items to your credit card to makeup
  the difference.
• Keep track of all of your checks written, bank
  fees, ATM withdrawals, etc.

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Finding Extra Money

• Needs vs. Wants
• Do I need to eat out as often as I do?
• Do I need new clothes or do I want to buy new
  clothes because they are on sale?
• Do I need to shop at convenience stores and pay
  higher prices?

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It All Adds Up...

• If you spend 3.50 on coffee every weekday
• In a 5 day work week, youll spend 17.50.
• During the month, youll spend over 70.
• Over a year, that totals 840 in coffee.

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Your Money
Your Money
Budgets
Credit Reports
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Credit Card Basics

• Pay more than the minimum due on credit card debt
  - youll reduce the time it takes to repay your
  credit card debt and save money by paying less
  interest.
• Call the credit card issuer if you anticipate
  being late.
• Do not miss a payment or pay late because fees
  and additional interest will be charged.
• Do not exceed the credit card limit.
• Know your interest rate.

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Credit Card Basics

• A credit card statement arrives every month,
  listing all charges and payments.
• Understand that cash advances may cost you a fee
  and a higher interest rate.
• Compare offers to determine which card offers you
  the best interest rate (also referred to as APR
  or finance charges).

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Your Money
Your Money
Budgets
Managing Credit and Debt
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Your Credit Score

• Credit score is an evaluation of a persons
  credit worthiness. Think of it as a financial
  version of your college grade transcript.
• Credit scores change overtime.
• Scores range from about 350 to more than 800.
• Lenders review your credit report to determine if
  you are a good risk. Consumers with the best
  credit history get the best interest rates.

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A Negative Credit History

• Late payments, nonpayment and exceeding credit
  limits can stay on credit reports for 7 years.
• Bankruptcy can stay on your credit report for 7
  to 10 years.
• A poor credit history can
• Hurt your chances of renting an apartment or
  buying a house.
• Prevent you from being approved for a car loan or
  business loan.
• Affect your chances of getting some jobs.

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Your Credit History
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Tips on Improving Your Score

• Pay bills on time.
• Missed a payment? Get current and stay current.
• Keep balances low on credit cards and other
  revolving credit.
• Pay off debt rather than move it around.
• Dont close unused credit cards as a short term
  strategy.
• Dont open unnecessary lines of credit.
• Its okay to request and check your own score.

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Credit Report Best Practices

• Order a copy and review your credit report
  annually.
• Beware of credit repair companies offering to
  erase negative credit information.
• Dispute errors
• Make a copy of your credit report and mark items
  you suspect are incorrect.
• Write a letter to the reporting agency and
  explain the disputed items.
• Request an investigation and send copies of
  supporting documents.
• Tell the creditor in writing that you dispute an
  item.
• Keep copies of all correspondence.

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Protect Your Credit

• Never give your card number to anyone unless you
  are making a purchase or a reservation.
• Before making purchases online, check the
  merchants security protection.
• If your card becomes lost or stolen, contact the
  issuing bank or financial institution
  immediately.
• Before you move, provide your new address to the
  card issuer in writing.

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Get Your Credit Report

• Youre entitled to one free credit report each
  year
• Annual Credit Report www.annualcreditreport.com
  
• Major credit bureaus
• Equifax www.equifax.com
• Experian www.experian.com
• Trans Union www.transunion.com
• MyFico www.myfico.com

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Be Credit Wise!

• Budgeting
• Dont buy what you cant afford.
• Watch where and what you spend on.
• Credit Cards
• Pay more than the minimum payment.
• Dont miss payments.
• Know your interest rates and compare.
• Credit Reports
• CHECK yours for FREE once a year.

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Are You Credit Wise?

• More information on credit and money management
  at

www.areyoucreditwise.com