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credit presentation_1_

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									     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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