consumer credit basics use credit wisely to enjoy personal financial health
TRANSCRIPT
Consumer Credit Basics
Use credit wisely to enjoy personal financial health.
Consumer Credit Basics
• The benefits and costs of using credit
• Basics concepts in consumer lending
• Credit scores
• Using credit wisely
Use Credit Wisely
• Build credit• Big items; house, car, college• Convenient & safe• Emergencies
Use Credit Wisely
• Easy to live beyond your means• Easy to get into credit trouble• Hard to get loans for big items or
emergencies with bad credit
Credit 101
Installment or Revolving
Secured or Unsecured
Credit 101
Installment or Revolving
Secured or Unsecured
The 3 C’s of Credit:
1. Capacity2. Capital3. Character
Credit 101
Installment or Revolving
Secured or Unsecured
The 3 C’s of Credit:
1. Capacity2. Capital3. Character
Credit Score
Credit Score
Payment History35%
Amount Owed30%
Length of history15%
Types of credit10%
New credit10%
Credit Score
Payment History35%
Amount Owed30%
Length of history15%
Types of credit10%
New credit10%
Credit Score
Payment History35%
Amount Owed30%
Length of history15%
Types of credit10%
New credit10%
Use Credit Wisely
• Pay on time• Pay in full or more than minimum• Evaluate purchases• Avoid fraud
Use Credit Wisely
• Pay on time• Pay in full or more than minimum• Evaluate purchases• Avoid Fraud
•Over limit fees•Convenience fees/interest•Cash advance
Credit Help
• Communicate with lenders• Talk to a financial counselor• Work out a budget• Prioritize debts
MCUL Financial Education
• MCUL Consumer Financial Education Library
• Financial Health course
• Lovemycreditunion.org
• CU Village Financial Resource Center