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Credit Check

Credit Check. Introductions. INSTRUCTOR’S CONTACT INFO HERE w/ logo where BANK ON logo is. Lesson resources provided by Federal Deposit Insurance Corporation, Purdue University Extension and University of Illinois Extension. Who loans money?. Objectives. Understand what credit is

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Credit Check

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  1. Credit Check

  2. Introductions • INSTRUCTOR’S CONTACT INFO HERE • w/ logo where BANK ON logo is. Lesson resources provided by Federal Deposit Insurance Corporation, Purdue University Extension and University of Illinois Extension.

  3. Who loans money?

  4. Objectives • Understand what credit is • Learn the positive and negative aspects of credit • Increase knowledge of the role credit reports and credit scores play in your financial footprint • Increase knowledge of how to improve your credit report and score

  5. What’s the difference? Debt Credit Credit is your ability to borrow money. Money you borrow from a business or person.

  6. Why is credit important? • Useful in times of emergencies • Convenient when you do not have cash • Allows you to pay for large purchases over time • Helps you obtain employment, housing and insurance

  7. When is credit (debt)worth it to you?

  8. Is your credit in good shape? • Are these statements true for you? • I have seen my credit report before. • My credit report is accurate. • I maintain a credit score above 700. • I understand the cost of interest. • I know how long it will take to repay debt making monthly payments. • I know the total amount (principal + interest) of a loan I owe.

  9. What is a credit report? • It tells lenders: • Who you are • How much debt you have • Whether you have made payments on time • Whether there is negative information about you in public records

  10. What is a credit report used for? • To obtain loans and other credit • To get certain kinds of jobs • For housing – rental applications and mortgages • To pay less for insurance

  11. Check your credit report • Get a free credit report • from each of the 3 credit bureaus once a year • at • www.annualcreditreport.com

  12. Checking your report Make sure it is correct • Name and address • Social security number • Personal information • Is each account listed, a debt you owe? • Is the negative information correct? • Information listed under public information

  13. Credit repair scams • Provide you with a credit report for a fee • Fix bad credit notations • Offers to provide a service for payment up front

  14. Credit scores

  15. Credit build and repair • PowerPay • Secured credit cards • Credit building loans • Freezing credit – free in Indiana

  16. What’s the real cost?

  17. Want to buy a TV? • 1. You get an installment loan from a store that charges 29% interest. If you repay the loan in one year, how much will the TV cost? • 2. You decide to lease a TV, and your payments are $12 a week. How much money will you spend in a year for the TV? • 3. You save $12 a week. How many weeks will it take you to buy the TV with cash? • 4. The currency exchange down the street is an easy place to get a small-dollar loan. Why does it cost over $300 to pay for the TV? • 5. What is the cheapest of the four choices to buy the TV? • 6. If you wanted a new TV, what method would you use to pay for it?

  18. What’s the real cost?

  19. When you get home • Get your credit report & check accuracy • Check your credit score • Opt out of unsolicited credit offers

  20. Thank You! • INSTRUCTOR’S CONTACT INFO with logo HERE Interested in another class? Visit NIBOA.org. Lesson resources provided by Federal Deposit Insurance Corporation, Purdue University Extension and University of IL Extension.

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