Five Cs of Credit Character Capacity Collateral Capital

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

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

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

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

Credit Averages

Your Credit Score

Your Credit Score

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

$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

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

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

Best Deal? • A: $58/week x 60 weeks @ 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

Credit Card for Travel and Emergencies • United Express: $50 annual fee, pay balance in full each month • Big. Business 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

The Best Deal • Not United Express: Must pay balance off in full • Not Big. Business 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

$1, 500 Family Vacation • Save $60 per month • Pay $30 per month on the credit card • Pay $67. 50 per month for a bank loan for 2 years

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

$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. • We. Fix. It. Fast Card. 10% off cost of repairs.

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

Where you borrow makes a difference

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.

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.