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MoneyWi$e Webinar

MoneyWi$e Webinar. Consumer Action and the National Community Reinvestment Coalition welcome you to this financial literacy webinar. The training will start shortly. Training overview. Introductions About MoneyWi$e Teaching Adults Module I: Good Credit Module II: Rebuilding Good Credit

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MoneyWi$e Webinar

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  1. MoneyWi$e Webinar Consumer Action and the National Community Reinvestment Coalition welcome you to this financial literacy webinar. • The training will start shortly.

  2. Training overview • Introductions • About MoneyWi$e • Teaching Adults • Module I: Good Credit • Module II: Rebuilding Good Credit • Implementation • Materials & Evaluation

  3. About MoneyWi$e • A joint financial education project of Consumer Action and Capital One • A unique and innovative financial literacy program that combines free multilingual publications, train-the-trainer materials, regional conferences and funding opportunities • Learn more at www.money-wise.org

  4. MoneyWi$e Modules • Banking Basics • Elder Fraud • ID Theft and Account Fraud • Keys to Homeownership • Micro Business • Money Management • Personal Bankruptcy • Saving to Build Wealth • Teens and Money

  5. Teaching Adults • A good teacher of adults • Is people-centered, more interested in people than things, more interested in individuality than conformity, and more interested in finding solutions than following rules. • The teacher must be understanding, flexible, patient, humorous, practical, creative and prepared. • *How to Teach Adults, William A Draves, The Learning Resource Network

  6. Good Credit • Purpose: • To provide workshop participants with an understanding of what credit is, the impact of credit on one’s financial status, and skills for establishing and maintaining good credit • Objective is to learn: • How to establish credit • How to maintain good credit • How to request and read a credit report • What credit scoring is • What your rights as borrower are

  7. Materials • Building and Rebuilding Good Credit brochure • Good Credit Leader’s Guide • Lesson Plan • PowerPoint Slides

  8. What is credit? • Ability to borrow money or obtain goods by paying little or no money at the time of purchase. • Your promise to pay the original cost later or over time plus interest.

  9. Why do you need credit? • Buying a home or renting an apartment • Getting a job • Getting phone service • Finance an automobile • Spreading out payments for expensive items • Qualify for insurance • Get a loan • Obtain a credit card

  10. Good vs. bad credit • Good credit • Reliable in paying bills • Companies willing to extend credit • Bad credit • Unreliable in paying bills • Bills are paid late • Debts are abandoned • Filed for bankruptcy

  11. Borrowers’ responsibilities • Borrow only what you can repay • Read and understand the credit contract • Pay debts promptly • Notify creditor if you cannot meet payments • Report lost or stolen credit cards promptly

  12. How can I get credit? • Establish an account • Ask a local company • Find a co-signer • Get a secured credit card • Use it responsibly for a year or two • Pay all bills promptly • Don’t bounce checks

  13. Why is credit denied? • No credit history • Too much outstanding credit • Credit not handled responsibly in the past • Victim of fraud

  14. What is a credit report? • Record your loans, credit cards, payments and outstanding debts • Lenders report your credit usage to companies called ‘Credit Reporting Bureaus’ • Equifax • TransUnion • Experian

  15. What’s on your credit report? • Current and past payment information • On-time and late payments • Outstanding credit limits and balances • Information from public records • Names of companies who have asked a copy of your report

  16. Who can get a copy of the report? • You • Only those who can prove a legitimate need • Banks • Credit card companies • Landlords or real estate companies • Employers

  17. How can you get a copy? • www.annualcreditreport.com • Experian, TransUnion, Equifax • You’ll need to provide this information: • Full name • Social Security number • Addresses for past 2-5 years, telephone number • Birthdate

  18. The cost for your credit report • One free copy from each bureau each year. • Your credit report is also free if you’ve been denied credit in the past 60 days, based on your credit report. • Otherwise, the cost is approximately $9.

  19. Activity - Credit profiles • Web Profile: Lupita • Poll: Score Lupita’s credit: • Poor • Passable • Good • Excellent • Poll: Do you think Lupita will get the loan? • Chat: Why do you think Lupita will/will not get her second car loan?

  20. Rebuilding Good Credit • Improve Your Credit - Brochure • Rebuilding Your Credit - Guide • Lesson Plan with Activities • PowerPoint Slides

  21. Rebuilding Good Credit • By the end of the training participants will understand: • How poor credit can prevent them from doing certain things. • That it is never too late to start to rebuild good credit. • What information on a credit report is seen as negative. • Some ways to improve one’s credit.

  22. Damaged credit • What does bad credit mean to you? • How can bad credit limit your life? • How do you know if you have bad credit?

  23. Credit repair companies • Everything a credit repair company can do legally, you can do yourself • Credit repair companies charge money—sometimes lots of money • No one can legally remove accurate negative information from a credit report. • If you decide to work with a company, research its offer carefully.

  24. Let’s evaluate some ads • Page 13 - Lesson Plan - Rebuilding Good Credit File • #1 BAD CREDIT? NO CREDIT? NO PROBLEM! • Guaranteed Loans! • Consumer Credit Counseling Service. • Poll: Would you respond to ad 1, 2 or 3?

  25. If a collection agency calls… • Respond immediately if you don’t agree that you owe money. • Ask the collection agency to prove that you owe the money. • A collection agency can’t try to collect the debt while its validity is being checked out.

  26. Rebuilding good credit • It takes time and patience to establish good credit. • Each person’s situation is different and lenders have wide-ranging requirements.

  27. Ways to rebuild good credit • Pay your existing credit accounts on time • Apply for a credit card or small loan • Find a co-signer • Get a secured credit card

  28. Activity: Secured Credit Cards • Let’s take a few minutes to compare secured credit card offers. - Page 17 - Lesson Plan • Poll: Which credit card offer has the most favorable terms?

  29. Keeping your good credit • Review your credit report at least once a year. • Close unneeded accounts. • Pay your bills on time. • Apply only for credit that you really need. • If you divorce or separate, make sure that joint accounts are closed.

  30. Implementation • MoneyWi$e: flexible, independent modules that can be tailored and combined to address the needs of your audience • All publications are free for non-profit organizations • Visit www.money-wise.org

  31. Thank you for attending! • Please send us the evaluation!! • Consumer Action: hotline@consumer-action.org outreach@consumer-action.org www.consumer-action.org www.money-wise.org

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