What is credit?

credit

This presentation was prepared by Farmonov Umidjon

What is credit?

Credit is more than a plastic card you use to buy things - it is your financial trustworthiness.

Why do you need credit?

• Renting an apartment
• Buying a house
• Buying, leasing or renting a car
• Cell Phone Service
• Buying online
• Getting a job

Advantages of good credit

• Low interest rates
• More options
• Saves you money

Disadvantages of Bad Credit

• High interest rates
• Lack of options
• Spend more money than you have
• Can be turned away
• Unable to get a mortgage!

Credit Cards

What are the Advantages of Credit Cards?

• A safe alternative to cash
• Builds a good credit history
• Bails you out of emergencies
• Gives you time to pay

Tips for Using Credit Cards

• Create a BUDGET
• Use your credit card to make small purchases
• Pay your entire balance before the due date on your bill
• Never lend it to anyone
• Never sign a blank charge slip

Credit Score

• The most popular credit today - FICO - is a number between 300 and 850, assigned to you. It helps lenders decide how creditworthy you are – the higher the score, the lower the risk.

How FICO Scores are Calculated

• 5% Payment history
• 30% What you owe
• 15% Type of credit
• 10% New accounts
• 10% Length of credit history

How to improve your credit score

• Always pay bills on time.
• Get credit. Use it.
• Don’t max out your cards.
• Don’t be afraid to talk to your creditors.
• Avoid opening new accounts to spread debt around.
• Monitor your credit.

Credit union

• Credit Unions are not-for-profit organizations that exist to serve their members
• How are they like banks?
• Credit Unions accept deposits, make loans and provide other financial services
• Credit Unions have ATMs as well as PC and Mobile Banking
• Deposits are federally insured
• How are they not like banks?
• Instead of stockholders they are owned by their members
• Profits go back to members in better rates and lower fees

Who is excite credit union

• We’re your local, neighborhood-friendly credit union and we’ve been here over 60 years
• Over 40,000 members and approximately $600m in assets
• Regular Accounts with no monthly fees
• Our goal is to give everyone the chance to build a financially stronger future
• Unique Youth Savings Programs

Your Credit Report

• Three major credit bureaus - Equifax, Experian & TransUnion
• Bureaus compile and report information

- Payment history, public records, personal information, inquiries

• Information is used for credit and other business decisions

What’s on your credit report

Credit Accounts

• The date the account was opened
• The type of credit (revolving, installment, mortgage)
• Your credit limit
• Your current balance
• Who you have the account with
• Your payment history

Credit Inquiries

• Soft Inquiries
• Hard Inquiries

Public Records

• Bankruptcies
• Collections
• Repossessions
• Foreclosures

Personal Information

• Name
• Former Names
• Current Address
• Previous Addresses
• Social Security Number
• Date of Birth
• Employer

THANK YOU FOR YOUR ATTENTION

THANK YOU FOR YOUR ATTENTION