Five C’s of Credit

2. Five C’s of Credit • Character • Capacity • Collateral • Capital • Conditions

3. Free Credit Reports • Fair and Accurate Credit Transactions Act • Georgia’s Fair Business Practices Act

4. Information in Credit Reports • Personal Information • Credit History • Inquiries • Public Records

5. Information in Credit Reports • Personal Information • Credit History • Inquiries • Public Records

6. Credit Averages

7. Your Credit Score

8. Your Credit Score

9. Determining Your Credit Score 690? 385? 745? 510?

11. $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

12. 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

13. 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

14. 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

15. 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

16. 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

17. $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

18. 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

19. $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

20. 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

21. Where you borrow makes a difference

22. 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.

23. 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.