BE CREDIT WISE PRESENTED BY ACCEL This presentation will cover the basics of credit: what it is, how it can help and hurt your financial situation. How to responsibility handle credit and fix problems associated with credit.
WHAT DOES CREDITMEAN? HAVE IT NOW, PAY IT LATER Credit is a way of having something now and paying for it later. Credit is neither a positive nor a negative thing; it can be wisely or poorly. What do you think?
ADVANTAGES OF CREDIT Pay for large items over time Replaces need to carry cash Helps build credit Helps with emergencies or sales
DISADVANTAGES OF CREDIT Commits future earnings False sense of financial security May include finance charges Encourages over-spending
BEFORE YOU APPLY Ask yourself these two questions: 1. How much credit can I afford? 2. Do I currently have a spending plan?
BEFORE YOU APPLY Ask yourself these two questions: ODDS OF A LAYOFF? 1. How much credit can I afford? HOW STABLE IS YOUR JOB? DO YOU HAVE EMERGENCY FUNDS? 2. Do I currently have a spending plan?
TYPES OF CREDIT Borrowing from a friend Credit cards Charge cards Debit cards Secured cards Installment credit Mortgage loan Home equity loans
SHOPPING FOR CREDIT InstallmentLoans • Annual Percentage Rate (APR) • Finance charge • Loan maturity CreditCards • Grace period • Late payment fees • Other charges
THE THREE C’S OF CREDIT CAPACITY CAPITAL CHARACTER
STEPS TO ESTABLISHING CREDIT OPEN A CHECKING OR SAVINGS ACCOUNT APPLY FOR A LOAN THAT HAS COLLATERAL OBTAIN A CO-SIGNER APPLY FOR A SECURED CREDIT CARD OPEN A CHARGE ACCOUNT AT A LOCAL DEPT. STORE
COST OF MAKING MINIMUM PAYMENTS What do younotice?
GET IN TOUCH CONTACT ACCEL Accel’scounselorswouldloveto chat! Accelis a not for profit consumer credit counseling agency and Hud approved housing counseling agency headquartered in Farmington Hills, MI. www.accelservices.org 877-33ACCEL/877-332-2235