Five C’s of Credit

• Character• Capacity• Collateral• Capital• Conditions

Free Credit Reports

• Fair and Accurate Credit Transactions Act

• Georgia’s Fair Business Practices Act

Information in Credit Reports

• Personal Information• Credit History• Inquiries• Public Records

Information in Credit Reports

• Personal Information• Credit History• Inquiries• Public Records

Credit Averages

Your Credit Score

Payment HistoryAmount OwedLength of HistoryType of CreditNew Credit

Your Credit Score

Payment HistoryAmount OwedLength of HistoryType of CreditNew Credit

Determining Your Credit Score

385? 510

?

690?

745?

$8,000 for second car

• Used Car Dealer: $275 down, $275/month

• Credit Card: $160 month• Bank Loan: Either $125 or $250 per

month• Lease: $200/month

The Fine Print

• $275/month @ 36% APR x 70 months = $19,250

• $160/month @ 18% APR x 94 months = $15,040

• $125/month @ 9% x 88 months = $11,000• $250/month @ 6% APR x 35 months = $8,750

• Down payment, fees for excess mileage or wear & tear

New Kitchen Appliances

• Dealer A: All 3 for $58/week with free delivery and free maintenance

• Dealer B: All 3 for $250/month. Delivery is $50 extra. Extended warranties available for additional $100/month

• Dealer C: All 3 for $99/month, plus delivery and extended warranty

• Lay-Away: $300 down plus $10 fee with 6 months to pay off balance

Best Deal?

• A: $58/week x 60 years @ 99+% APR = $15,080

• B: $250/month x 12 months @ 0% APR = $3,000 + $1,200 for extended warranty

• C: $99/month x 82 months @ 36% = $8,118

• Layaway: $450/month x 6 months @ 0% + $300 (down) + $10 (fee) = $3,010

Credit Card for Travel and Emergencies

• United Express: $50 annual fee, pay balance in full each month

• BigBusiness Bankcard: $35 annual fee, 15.9% APR on unpaid balance, earn bonus points

• Mistercard: no annual fee, 0% APR for 6 months then 5 points above prime, 29.9% penalty rate

• R.U.Kiddingme Card: no annual fee, 6% APR, purchase only from catalog

The Best Deal

• Not United Express: Must pay balance off in full

• Not BigBusiness Bankcard: $35 fee and high APR (15.9%)

• Mistercard: No fee, but be sure to pay on time to avoid penalty rate of 29.9%

• Not R.U.Kiddingme Card: Catalog too limiting and usually more expensive

$1,500 Family Vacation

• Save $60 per month• Pay $30 per month on the credit card• Pay $60 per month on the credit card• Pay $67.50 per month for a bank loan

for 2 years

The Best Choice?

• Saving: 2 years to save enough, and the price will have gone up by then

• Credit Card: $30/month @ 9.9% APR x 65 months = $1,950

• Credit Card: $60/month @ 9.9% APR x 29 months = $1,740

• Bank Loan: $67.50/month @ 5.9% APR x 24 months = $1,620

$850 for Car Repairs

• Save, if he can work.• Title Loan. $1,500 in cash in exchange for

title, set of keys, and $100/month payment.

• Credit Card Cash Advance. Pay $18/month.

• WeFixItFast Card. 10% off cost of repairs

The Best Deal?

• Saving: not really an option• Car Title Loans: NO!• Credit Card Cash Advance. $18/month @

21.9% APR x 117 months = $2,106• Credit Card. $18/month @ 21.9% APR x

110 months = $1,980• Store Card. $75/month @ 21.9% APR x 12

months = $900

Where you borrow makes a difference

Credit Dangers

• Using credit cards to live beyond your means.

• Relying on creditors to set your credit limit.

• Carrying a balance on credit cards.• Making only the minimum payment on

credit cards.• Buying the wrong items on credit.

Your Good Credit Depends on You

• Check your credit report…often.• Address negatives on your report.• Avoid adding negative information.• Shop around for the best terms.• Use credit wisely.