Chapter 8

Preserving Your Credit

Slide 2

How Can You Manage Credit Use?

• Pay bills on time to build a solid credit history.

• Pay entire amount to avoid paying interest.

• Establish a cash fund and have unused credit.

8-3 Credit Management

• Establish credit so it will be available in the future.

Slide 3

Study Credit Offers

8-3 Credit Management

Compare disclosure terms.o Interest rateso Grace periodo Annual feeo Minimum finance chargeo Transaction feeso Cash advance feeso Late feeso Over-the-limit fees

Slide 4

Avoid Unnecessary Credit Costs

8-3 Credit Management

• Keep the number of credit cards and accounts to a minimum.

• Comparison shop for credit cards.

• Consider special deals and financing.

• Use credit to get sale prices.

• Time your credit purchases.

• Get cash rebates and rewards.

• Pay bills on time or early.

Slide 5

Avoid Unethical Loan Practices

• A loan shark offers illegal unsecured loans at high interest rates.

• An advance-fee loan includes a large upfront fee.

8-3 Credit Management

• Equity stripping involves giving a loan to a homeowner who cannot afford it, then taking possession of the home.

Slide 6

Success Skills

8-3 Credit Management

Stress Management• Identify the causes of negative stress.• Take steps to avoid or change these

situations.• Seek counseling for serious stressful

events.• Find activities to help you relax.• Spend time with family and friends.• Get rest, eat healthfully, and stay active.