costly credit cards - credit on campus -

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Costly Credit Cards - http://www.youtube.com/watch?v=Y8B5XsTm35c&feature=related Credit on Campus - http://www.youtube.com/watch?v=5RgNBIWR8Uo&feature=relmfu Build Credit at a Young Age - http://www.youtube.com/watch?v=gkpqzyZMg4o&feature=related Smart Uses for Credit Cards - http://www.youtube.com/watch?v=qEyMThLZNkg&feature=relmfu Improving Your Credit History - http://www.youtube.com/watch?v=x7d_HHPkm7k&feature=relmfu Cutting Credit Card Rates - http://www.youtube.com/watch?v=8qinGBwSbcQ&feature=relmfu ATM Rip-Offs - http://www.youtube.com/watch?v=e-c35P4QW9s&feature=related

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Costly Credit Cards - http://www.youtube.com/watch?v=Y8B5XsTm35c&feature=relatedCredit on Campus - http://www.youtube.com/watch?v=5RgNBIWR8Uo&feature=relmfuBuild Credit at a Young Age - http://www.youtube.com/watch?v=gkpqzyZMg4o&feature=relatedSmart Uses for Credit Cards - http://www.youtube.com/watch?v=qEyMThLZNkg&feature=relmfuImproving Your Credit History - http://www.youtube.com/watch?v=x7d_HHPkm7k&feature=relmfuCutting Credit Card Rates - http://www.youtube.com/watch?v=8qinGBwSbcQ&feature=relmfuATM Rip-Offs - http://www.youtube.com/watch?v=e-c35P4QW9s&feature=related

Credit and Credit CardsCredit Cards – •2014 – 200 million customers held 1 or more credit cards(average of 3.75 pp)•Total number of credit cards in use – 1.9 BillionU.S. household consumer debt profile:•Average credit card debt: $15,611•Average mortgage debt: $155,192•Average student loan debt: $32,264

Credit and Credit CardsIn total, American consumers owe:•$11.74 trillion in debt (up 3.3%) •$882.6 billion in credit card debt•$8.14 trillion in mortgages•$1.13 trillion in student loans (up 8%)

•2014 – 910,090 individuals filed for bankruptcy•Guinness Book of World Records – 1 person with 1,497 Credit Cards (2005)

Credit and Credit CardsUse of Credit Cards – Advantages•Buy and enjoy expensive items while still paying for them•Convenience

TravelingMail or Internet

•Financial Emergencies•Student loans•Purchase of vehicles and homes

Credit and Credit CardsDisadvantages – •Increase in cost due to interest and fees•Overspending•False sense of security•Risk – Poor Credit Rating•Future earnings are “earmarked”•Frenzies•Poor purchases – goods not needed•Predatory Lending•Living beyond ones means or income

Credit and Credit CardsAdvertising or Promotions – •Hidden messages•False advertising

Loans – Are they Equal?•APR•Credit Limit•Finance Charge•Minimum payment and over limit fees

Credit and Credit CardsCredit Worthiness – 3C’s•Collateral•Character•Capacity

Credit and Credit CardsImportant Terms – •Annual Percentage Rate (APR)•Credit Score & Credit Rating•Due Date•Finance Charge•Grace Period•Minimum Payment•Cost/Benefit Analysis

Credit Reports – Credit RatingCredit Reporting Agencies (CRA’s) – •Important role in determining who receives credit and how much is obtained•Gather and sell personal credit information

Payment tendencies Amount of debt Available credit Loans, tax liens, judgments, bankruptcy Employment status and salary history Residencies and aliases

Credit Reports – Credit RatingCredit Reporting Agencies (CRA’s) –

•Equifax•Experian•TransUnion

Credit Reports – Credit RatingCredit Reports Matter – •Information can affect one’s present and future financial life•Poor credit ratings prevent people from obtaining good credit rates or any credit at all

Ways to Establish Credit – •Open a savings or checking account•Bank Loan•Credit Card

Credit Reports – Credit RatingWays to Establish Credit – •Small credit purchase•Cell phone or Internet in your name•Membership to a Credit Union

Questions to Consider – •What is a credit report and what kind of information does it contain?•Who maintains, updates, and uses this information?•Why is a good credit report important?