BE CREDIT WISE

This presentation will cover the basics of credit: what it is, how it can help and hurt your financial situation. How to responsibility handle credit and fix problems associated with credit.

PRESENTED BYACCEL

WHAT DOESCREDIT MEAN?HAVE IT NOW, PAY IT LATER

What do you think?

Credit is a way of having something now and paying for it later. Credit is neither a positive nor a negative thing; it can be wisely or poorly.

ADVANTAGES OF CREDIT

1) Pay for large items over time2) Replaces need to carry cash3) Helps build credit4) Helps with emergencies or

sales

DISADVANTAGES OF CREDIT

1) Commits future earnings2) False sense of financial

security3) May include finance charges4) Encourages over-spending

BEFORE YOU APPLY

Ask yourself these two questions:1. How much credit can I afford?

2. Do I currently have a spending plan?

BEFORE YOU APPLY

Ask yourself these two questions:1. How much credit can I afford?

2. Do I currently have a spending plan?

HOW STABLE IS YOUR JOB?

ODDS OF A LAYOFF?

DO YOU HAVE EMERGENCY

FUNDS?

TYPES OF CREDIT

Borrowing from a friendCredit cardsCharge cardsDebit cardsSecured cardsInstallment creditMortgage loanHome equity loans

SHOPPING FOR CREDIT

• Annual Percentage Rate (APR)• Finance charge• Loan maturity

Installment Loans

Credit Cards• Grace period• Late payment fees• Other charges

THE THREE C’S OF

CREDIT1) CAPACITY2) CAPITAL3) CHARACTER

STEPS TO ESTABLISHING CREDIT

1) OPEN A CHECKING OR SAVINGS ACCOUNT

2) APPLY FOR A LOAN THAT HAS COLLATERAL

3) OBTAIN A CO-SIGNER

4) APPLY FOR A SECURED CREDIT CARD

5) OPEN A CHARGE ACCOUNT AT A LOCAL DEPT. STORE

COST OF MAKING MINIMUM PAYMENTSWhat do you notice?

Category 1 Category 2 Category 3 Category 40

0.51

1.52

2.53

3.54

4.55

GET IN TOUCHCONTACT ACCELAccel’s counselors would love to

chat!Accel is a not for profit consumer credit counseling agency and Hud approved housing counseling agency headquartered in Farmington Hills, MI.

www.accelservices.org

877-33ACCEL/877-332-2235

THANK YOU