Chapter 8 Preserving Your Credit How Can You

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Chapter 8 Preserving Your Credit

Chapter 8 Preserving Your Credit

How Can You Manage Credit Use? • Establish credit so it will be available

How Can You Manage Credit Use? • Establish credit so it will be available in the future. • Pay bills on time to build a solid credit history. • Pay entire amount to avoid paying interest. • Establish a cash fund and have unused credit. 8 -3 Credit Management Slide 2

Study Credit Offers Compare disclosure terms. o o o o Interest rates Grace period

Study Credit Offers Compare disclosure terms. o o o o Interest rates Grace period Annual fee Minimum finance charge Transaction fees Cash advance fees Late fees Over-the-limit fees 8 -3 Credit Management Slide 3

Avoid Unnecessary Credit Costs • Keep the number of credit cards and accounts to

Avoid Unnecessary Credit Costs • Keep the number of credit cards and accounts to a minimum. • Comparison shop for credit cards. • Consider special deals and financing. • Use credit to get sale prices. • Time your credit purchases. • Get cash rebates and rewards. • Pay bills on time or early. 8 -3 Credit Management Slide 4

Avoid Unethical Loan Practices • A loan shark offers illegal unsecured loans at high

Avoid Unethical Loan Practices • A loan shark offers illegal unsecured loans at high interest rates. • An advance-fee loan includes a large upfront fee. • Equity stripping involves giving a loan to a homeowner who cannot afford it, then taking possession of the home. 8 -3 Credit Management Slide 5

Success Skills Stress Management • Identify the causes of negative stress. • Take steps

Success Skills Stress Management • Identify the causes of negative stress. • Take steps to avoid or change these situations. • Seek counseling for serious stressful events. • Find activities to help you relax. • Spend time with family and friends. • Get rest, eat healthfully, and stay active. 8 -3 Credit Management Slide 6

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