BE CREDIT WISE
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Transcript of BE CREDIT WISE
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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 BYACCEL
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WHAT DOESCREDIT 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.
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ADVANTAGES OF CREDIT
1) Pay for large items over time2) Replaces need to carry cash3) Helps build credit4) Helps with emergencies or
sales
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DISADVANTAGES OF CREDIT
1) Commits future earnings2) False sense of financial
security3) May include finance charges4) Encourages over-spending
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BEFORE YOU APPLY
Ask yourself these two questions:1. How much credit can I afford?
2. Do I currently have a spending plan?
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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?
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TYPES OF CREDIT
Borrowing from a friendCredit cardsCharge cardsDebit cardsSecured cardsInstallment creditMortgage loanHome equity loans
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SHOPPING FOR CREDIT
• Annual Percentage Rate (APR)• Finance charge• Loan maturity
Installment Loans
Credit Cards• Grace period• Late payment fees• Other charges
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THE THREE C’S OF
CREDIT1) CAPACITY2) CAPITAL3) CHARACTER
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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
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COST OF MAKING MINIMUM PAYMENTSWhat do you notice?
Category 1 Category 2 Category 3 Category 40
0.51
1.52
2.53
3.54
4.55
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GET IN TOUCHCONTACT ACCELAccel’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
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THANK YOU