Credit Consumer Economics Credit is simply… Buy now, Pay Later…For a fee Fee is…interest and finance charges Advantages and Disadvantages to Credit Advantages and Disadvantages to Credit 3 Types of Credit issued 3 Types of Credit issued It 3 Types of Credit issued Past 3 C’s of Credit Future Secured and Unsecured debt Present Three C’s of Credit Present Three C’s of Credit Secured and Unsecured Debt Three C’s of Credit Past This “C” is reflected in your credit report and credit score. What your credit report can and cannot include… Credit Reporting Collect your data…that’s all they do. Sell it to creditors They only know what creditors tell them Clearing house of information/data Three major credit reporting agencies Next slide Credit Reporting Agencies Trans Union- www.transunion.com Experian- www.experian.com Equifax- www.equifax.com -Their job is to simply sell back the data they collect. -If you go to them to get one…it will cost you $8-15. -What’s the solution?…next slide, or dance like no one is watching!!! How do I get a Free Credit Report Government sponsors… Annualcreditreport.com Only free one out there…they send you to the 3 credit reporting agencies. Can get one from each agency/every year Register once for each company Do not go to any other website…$$$$$ You will need some info though Need this information to get credit report Your current full name (maiden name too) Current address (previous too if under 2 years at new one) Social Security number Date Credit Scores Examples and problems Good FICO Score FICO score of 700 and higher means Excellent or Very Good credit. Certain lenders offer better rates and/or discounts if you are over 720, 740, etc. Pity, their greedy loan officers might never share them with you.FICO score from 680 to 699 means Good. Pretty much you can get a normal loan. Translating in layman terms you won't be robbed too bad.FICO score from 620 to 679 is OK. You won't be denied but the terms are not going to be too generous. Still you are officially a nice person. But you better check the increase credit score page. Low Fico Score FICO score from 580 to 619 ... . Banks, brokers love you. Want to know why? That is where bad credit starts. But it is not that bad yet. They are still able to get you a loan but on their terms. Fat commissions for them, much more expensive loan for you. Chances are you will take it since you have little choice. And you'll think they your best friends. See improve my credit score page. Bad Fico Score FICO score from 500 to 580 is where the real trouble starts. Your credit is bad, period. You'll get your loan and you won't like it. But you should take it anyway, because that could be the beginning of your fresh start. Way to get away from bad credit. See repair your credit rating for more information.FICO score of 499 and below ... . My friend, you are in serious need for help for bad credit. There is very little what can be done and while it is still possible, the terms are going to be simply too brutal. The best thing is to try to repair bad credit first - the FICO credit score can be improved!
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