Credit Is Your Financial Future Establishing Credit Tips 1. Check credit reports with Equifax, Experian, Transunion and Innovis on Innovis.com if credit has never been granted. 2. Make sure information is correct: Social security, date of birth, address, name. 3. If no negative information then try store cards: Fingerhut, Valero, Firestone, Macys, Bloomingdales, Talbots, Gettington, Walmart, Victoria’s Secret, Dillards. 4. If denied, contact creditor through mail, phone, or fax asking for reconsideration. 5. If no approvals, get a secured credit card. Recommend: Wells Fargo card ($18 fee). 6. Always use Financeglobe.com to seek easy approval credit cards without annual fees and read the fine prints. 7. Pay the day the credit is used- Either the full balance or above the minimum payment. Credit Score Tips 1. Do not close credit cards unless there are annual fees that cannot be removed = Long history. 2. Do not carry balances at all. 3. Do not use all credit cards heavily. 3. Do not apply for more than two to three credit cards (or any loan) per year. 4. Have a variety of credit: Auto loans, student loans, credit cards, mortgage (home loan). 5. Check scores on MyFico.com only. 6. Like grades, high or low credit scores are only rankings. Creditors focus on negative content. Negative Financial Content (Evil! Creditors will deny applications and employers will attack!) 1. Delinquencies: Past due accounts. 2. Charge-off: Accounts never paid. 3. High number of inquiries: Number of times you applied for credit. Keep this number low. 4. Debts: Balances on accounts. 5. Collections: Debts sold from original creditor to a company. 6. How account was closed: “Closed by credit grantor” is negative. 7. Bankruptcy or debt settlements: Creditors have been cheated and think consumer is weak. 8. Negative checking or savings accounts reports to ChexSystems: Shows consumer is struggling. Handling Fraud Tips 1. Do not click on links provided on emails- “Log in to your account at www.Chase.com.” No! 2. Do not respond to emails, texts, or calls asking for information. Report these to the bank. 3. Do Internet search with number showing on caller ID- Determine if fraudulent. 4. Pay attention to web addresses on search bars. Notice unusual words. Examples: Authentic website- http://www.citibank.com.

Fraudulent website- http://www.zeo.citibank.com. Fraudulent website- http://www.citibank.baya.com. Fraudulent website- http://www.citibank.com/geo. 5. If victimized, file a police report, file a report with the Internet Crime Center (www.ic3.gov), freeze ChexSystems report on Consumerdebit.com, freeze Equifax, Experian, Transunion, and Innovis credit reports on their own websites. Freeze bank accounts and inform credit companies. Make sure no fraudulent accounts (credit cards, checking, savings, etc.) are opened. Golden Tip No matter what interest rates, debt amounts, or circumstances, always pay the bills. Not paying always leads to failure. Do payment plans if hardships arrive. Banks will work with consumers. No bankruptcy or settlements = Worst decision ever! Banks will have no respect. It will lead to stress. The economy cannot improve if consumers do not pay their debts.

5. Before being late. Mention these options to issuers. (Income-based and extended repayment offers lowest monthly payment) -Forbearances (5 years). -Graduated repayment. -Federal or private loan consolidation. -Economic hardship program. -Standard repayment (10 years). -Income-based repayment program. -Extended repayment (10 - 30 years). -Transfer loans to credit cards with credit unions (if interest rates are cheaper).

Rights of the Consumers 1. Free annual credit reports with Equifax, Experian, and Transunion: Annualcreditreport.com. 2. Free annual ChexSystems report on Consumerdebit.com. 3. Websites claiming free credit reports do charge after a trial period. 4. Free credit report with any bureau or ChexSystems at any time. -Fraud or identity theft. -Credit denial, account closure, or credit line reduction. -Job denial or receiving social welfare. -Insurance increase. -Dispute inaccurate information = Improves credit. -Freeze credit reports, ChexSystems report, fraud alerts, or add consumer statements. 5. Opt-out of receiving credit card offers. 6. Not paying for fraudulent transactions: Creditors must be contacted immediately. Handling Credit Cards 1. Call customer service every month and ask for lower interest rate and remove (or reduce) annual fees even if balances are not being carried (Prepared for large emergency purchases). If they refuse, contact corporate office though phone, mail, or fax. 10% or below is excellent. 2. Always use credit card that offers most rewards. 3. If planning on carrying a balance (not recommended), use credit card with lowest interest rate. 4. Pay early: Shows stronger financial stability. 5. Spend below 30% of credit line = Raises credit score. 6. Ask if hard credit check will be done for credit line increase. If not, then request increase. 7. Ask if store cards can be upgraded to bank card such as Visa, Amex, Discover, or MasterCard. 8. Use credit card for all purchases: Rewards save money, protection, no overdraft fees. 9. Do not close credit cards or let banks close them. Build long history. 10. If lost job, inform creditors and work out payment plans before becoming late. 11. Always consider non-profit credit counseling agencies if major hardships arrive. Checking and Savings Account Tips 1. Do not get accounts with fees ever. If the bank starts imposing them, close it immediately! 2. Open accounts with bonuses, no fees, interest paid, free rewards: Ibankbonus.com or Ibankdesign.com. 3. Do not use a debit card to make purchases on the Internet- Too risky. Use credit card. 4. Do not make accounts negative: Ruins ChexSystems report, reason for credit denial, and can be denied for checking or savings accounts in the future or get accounts with monthly fees. 5. Try not to use paper checks because they have account numbers at the bottom. 6. If overdraft fees are accessed, ask bank to waive them as courtesy. Contact corporate office. 7. Link checking to savings account, line of credit, or parents’ accounts for overdraft protection. 8. If always overdrawing account, opt-out of overdraft fees. The card will decline but no fees. 9. Never carry large cash in case robbery happens. 10. Do not withdraw money from ATM machines if there are fees for doing so. Student Loan Tips 1. Pay off unsubsidized loans first. Automatic payments from checking account = Interest discounts. 2. Unless there are extra fees, pay off loans with credit card, and then pay off credit card balances each month, that way you will earn rewards from the credit card. 3. Consider loan rehabilitation to prevent negative credit impacts. 4. Establish excellent credit and periodically call your issuers for lower interest rates.