Review of presentations

Credit, Finance, Credit cards, Savings Accounts, Payroll

3 types of credit scores

Equifax- A bureau that reviews, reports, and maintains consumer credit files.

Experian- Provides imformation, analytical tools, and marketing services to organizations and consumers to help manage financial decisions.

Transunion- Provides credit information and information management services.

Income tax

Wisconsin’s individual income tax rates vary from 4.40% to 7.65% depending on the marital status and income.

Compared to other states, Wisconsin gets a larger share of its revenue from the property tax and income taxes, and a smaller share from sales. But Wisconsin gets the same share of its revenue from state and local sources from the corporate income tax.

How have banks changed their lending practices over the last 7-10 years?

• Before, banks did not have a collateral on any loan( say something about how credit score doesnt matter.

Banks now a days require a credit score but if it is a low score…

• the bank will ask for a collateral (assets) if you fail to pay the payments by the due dates.

Other credit information

• Credit score does not go with just a person but full on companies.

• If you fight a credit card bill, your credit score can go down.

• A good credit score is 750 and above

• Not everybody has a credit history (young, or not applied for credit)

• Credit score and report (use) are different

• FACT act allows you to see your credit report for free

• You can have as many credit cards as you want but do not open them too frequently because they count as 10% of your overall credit score.

• Having multiple names on a credit card can lower your credit score.

More Credit information

• Employers use your credit score when you apply for a job.

• Your credit score can affect the amount on your auto insurance payments.

• Maxing out your credit card does not hurt your credit score FICO says it can lower it.

• FICO is an American public company that provides analytics and decision making services that help financial services companies make high volume decision.

• If you pay the bare minimum on a payment your credit score does not go down.

• FICO stands for Fair-Isaac-Corporation

Car Loan Example2014 Ford Taures

Lender Loan Principal Loan Term Interest Rate Monthly Payment

Total amount

Scenario 1 $18978 36 months 6.75% $562.75 $20259.02

Scenario 2 $18978 48 months 4.75% $414.16 $19879.46

Scenario 3 $18978 48 months 5.99% $419.06 $20114.78

Scenario 4 $18978 36 months 4.50% $564.54 $20323.44

Scenario 5 $18978 60 months 3.75% $347.37 $20842.20

Strategy What is it? What’s the risk? What are the pros? What are the cons?

Money Market Account

A type of checking account issued by a bank or credit union to hold your money

Minimal risk because it is FDIC or NCUSIF insured

- Higher interest rates than a savings account- Can withdraw money (with some restrictions)

- Higher minimum balance required- Some withdrawal restrictions (ex. Limits on number of withdrawals per month)- Subject to fees if balance below certain amount

Retirement Account

An account such as an IRA and 401(k) that helps you set aside money for retirement

Investment choices range from very secure government bonds to higher risk stocks

- Tax-deferred growth- Some employers will match contributions- Helps create long- term savings

- Steep penalties for withdrawing money before retirement- Contribution limits

Strategy What is it? Whats the risk?

What are the pros?

What are the cons?

Certificate of Deposit (CD)

Savings certificate issued by a bank or credit union

Minimal risk because it is insured by the Federal Deposit Insurance Corporation through a bank and the National Credit Union Share Insurance Fund through a credit union.

Higher interest rate than a traditional savingNot riskyThe longer the term, the higher the interest you usually earn.

Must be left in the bank for a fixed amount of time. Steep Penalties for withdrawing money early.Minimum balances required.

Savings Account A deposit account that interest and is issued by a bank or credit union.

Minimal risk because it is FDIC or NCUSIF insured.

Not riskyNo restrictions on withdrawalsLow or no minimum balances required

Lowest interest ratesSome banks charge fees for opening and maintaining accounts

Political parties and taxes

• Democrats- belief wealthiest americans should pay higher taxes. Not afraid to spend money (i.e. taxes) on schools/roads, government programs, etc

• Republicans- want low taxes across board even if it means not spending as much money on schools, roads, government programs etc.