Untitled presentation for econ and finance

this is notes on credit

1. credit

2. What is credit
●Credit is a tool for buying something now and paying for it later.
Types of credit
●Card
●Loans - car , business , real estate
●Mortgage - like a home

3. Is credit good or bad
●Why are you borrowing ? - need or want
●What are you going to get from it

9. More terms
Apr
maturity date
Loan term
Grace period

10. What will you get from it
●Its convenient

11. +

12. Examples of good and bad uses of credit
Wen is it ok
Car
House stuff like that
Big things

13. Cost of borrowing
Revolving credit - credit card
●Annual fee
●

14. BE AWARE OF MINIMUM
OF PAYMENTS

15. Be aware of compound interest

16. Dangers of debt
●Overspending
●Overwhelming debt
●You're interest on balances not paid off
●Legal actions
●Taking your property
●Garnish wages
●Id theft and fraud

17. Credit options
●Revolving credit
●Borrow but don't go over the limit
●try to repay all each month
●[ Build credit
●[ Instalment / close ended ( student /house )
●Service credit ( phone and utill and stuff )
●Requires a down payment
●Cash loan ( largest interest)

18. Be a shrewd borrower
●Dissave
●Shrewd
●S - need or want
●H- happy to pay for it
●R- room in budget
●E- extra coast
●W- wait some times
●D- discipline yourself

19. Whos responsible for debt
●User
●Joint account holder
●Co signer
●

20. 5 c’s of credit

●Capital - how much money do you have
●capacity - how much money is coming in
●Character - reputation for paying
●Collateral - what can they take
●Condoshions - special circumstances

21. 20/10 rule
Total debt <20 total annual net income


Total debt <10 total monthly net income

22. What basic info is needed for a credit/loan application
You're full name
Current addy and #
Date of birth
Ssn
Current employer
Monthey sal
Bank name and acc number
Monthey rent/mortgage

23. Credit report
Credit report - a history of how a person has used credit in the passed
Fed student loans do not require a credit report
What lenders check
●Where you live
●Credit acc amounts
●Payment history
●Goes back for 7 years
●How many times have you tried to borrow money
●If you file bankruptcy 7/10

24. Credit score
●700 or > its good
●600 -700 thats ok may get a loan
●600 or < noooo gooood antonio

25. How to get report and the score
Annualcreditreport.com
●One report for free from 3 different agencies
●Credit agencies are
○Equalax
○Experian
○Transunion
●Who provides the people with what info
○Lenders
○Banks
○landlords
○Employers
○etc

26. Good vs bad score
Good
●Better chance of getting a loan
●Better chance of getting a lower interest rate
Bad
●Rejections on apartments cell phones cards loans jobs
●Larger deposits when starting up accs
●Higher insurance
●Considered a subprime borrower

27. How to help your score
1.Pay your bills on time
2.Don't open many credit cards in a short period of time and max them out
3.Get a cc and use it wisely
4.Don't move cc balances around
5.Do get a cc while you have a student loan it builds credit

28. The contracts
●CC instalment student loans are all contracts
What is a contract
●Agreement between 2 parties
●Offer
●Acceptance - when both people sign
●Genuine agreement - from both parties
●Legal liability to say or or agreement
●Must be 18+ - and a legal transaction
●Oral or written / notarized

29. Ignorance is no excuse
You have to know what is expected of you know what you're doing
●Need to know how much it is and the interest
●Need to know the dates
●Know the consequences
●Watch for undates
●How to notifi about changes in personal info
●What to do if thare is a problem

30. What are your rights
Right to see the apr and any other fees before sighing
The right to be notified of any changes
The right to know how lenders use your personal info
The right to know why you was denied or offered less

31. Who can help you if something goes wrong
●The (FTC) they prohibit unfair deceptive acts
●Also the (CFPB)
●The (ECOA) that they can't discriminate
●(FCRA)
●(FCBA)
●Truth in lending

32. Who else can help you
●(FDCA)
●(CCA) - CC ACT OF 2009
●