Bad Credit Channel Protecting Good Credit

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Learn how to build good credit, protect good credit and avoid bad credit by using credit cards wisely.

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  • Bad Credit Channel Protecting Good Credit

    1. 1. Building & Protecting Good Credit
    2. 2. The Benefits of Protecting Your Credit <ul><li>What good credit can do for you? </li></ul><ul><li>Help you through a financial emergency </li></ul><ul><li>Enable you to pay for a purchase over time </li></ul><ul><li>Provide access to short, interest-free loans </li></ul><ul><li>Enable you to rent a home, a car, and reserve a hotel room </li></ul><ul><li>Save you money </li></ul><ul><li>Rebates or rewards </li></ul><ul><li>Allow you to avoid carrying cash </li></ul><ul><li>Makes life easier </li></ul>
    3. 3. Types of Credit <ul><li>Installment Credit </li></ul><ul><li>Fixed number of monthly payments </li></ul><ul><li>Car loans, mortgages (home loans) </li></ul><ul><li>Revolving Credit </li></ul><ul><li>Short-term, open-ended </li></ul><ul><li>Assigned credit limit </li></ul><ul><li>Available credit fluctuates as you make purchases & payments </li></ul><ul><li>Option to make full or partial payment </li></ul><ul><li>HELOCs, credit cards </li></ul>
    4. 4. Card Types <ul><li>Credit, charge & debit cards </li></ul><ul><li>Visa, MasterCard, Discover </li></ul><ul><ul><li>Affinity cards </li></ul></ul><ul><ul><li>Rewards cards </li></ul></ul><ul><ul><li>Secured cards </li></ul></ul><ul><li>Retail and gas cards </li></ul><ul><li>Stored value and Prepaid MasterCard & Visa Cards </li></ul><ul><li>Charge cards </li></ul><ul><li>Debit cards (Also known as check cards) </li></ul>
    5. 5. Credit Card Terms <ul><li>Credit limit </li></ul><ul><li>Method of computing the balance </li></ul><ul><li>Minimum payment </li></ul><ul><li>Payment due date </li></ul><ul><li>Grace period </li></ul><ul><li>Interest rate </li></ul><ul><li>Fees </li></ul>
    6. 6. Credit Card Interest <ul><li>The lender’s fee for allowing you to use its money </li></ul><ul><li>Expressed as a percentage of the credit </li></ul><ul><li>Fixed vs variable interest rate </li></ul><ul><li>Annual percentage rate (APR) </li></ul><ul><li>Periodic interest rate </li></ul><ul><li>Different rates for a single card: </li></ul><ul><ul><li>Teaser </li></ul></ul><ul><ul><li>Cash advance </li></ul></ul><ul><ul><li>Purchase </li></ul></ul><ul><ul><li>Penalty/Default </li></ul></ul><ul><ul><li>Balance transfer </li></ul></ul><ul><ul><li>Effective interest </li></ul></ul>
    7. 7. Credit Card Fees <ul><li>Application fee </li></ul><ul><li>Annual fee </li></ul><ul><li>Balance transfer fee </li></ul><ul><li>Cash advance fee </li></ul><ul><li>Currency conversion fee </li></ul><ul><li>Late fee </li></ul><ul><li>Overlimit fee </li></ul><ul><li>Bounced check/returned item fee </li></ul><ul><li>Miscellaneous fees </li></ul>
    8. 8. Credit Card Billing Statements <ul><li>Opening/closing date </li></ul><ul><li>Past due amount </li></ul><ul><li>New balance </li></ul><ul><li>Minimum payment due </li></ul><ul><li>Due date </li></ul><ul><li>Account summary </li></ul><ul><li>Transactions </li></ul><ul><li>Rewards information </li></ul><ul><li>Explanation of finance charges </li></ul><ul><li>Effective APR </li></ul>
    9. 9. Don’t Become a Statistic <ul><li>In 2007, credit card customers who didn’t pay the balance in full each month paid $18.1 billion in penalty fees to credit card companies. </li></ul>
    10. 10. Choosing a Credit Card <ul><li>Credit limit </li></ul><ul><li>Purchase APR </li></ul><ul><li>Balance transfer APR </li></ul><ul><li>Cash advance APR </li></ul><ul><li>Promotional APRs </li></ul><ul><li>Penalty APR </li></ul><ul><li>Variable-rate info </li></ul><ul><li>Grace period </li></ul><ul><li>Annual fee </li></ul><ul><li>Transaction fees </li></ul><ul><li>Penalty fees </li></ul><ul><li>Balance computation method </li></ul><ul><li>Minimum finance charge </li></ul><ul><li>Rewards </li></ul>
    11. 11. Obtaining Credit <ul><li>Consider pre-approved offers and invitations to apply </li></ul><ul><li>Apply to b anks, credit unions, retailers, card companies, and other institutions </li></ul><ul><li>Be sure to compare offerings, terms </li></ul><ul><li>Have bad credit? Consider an AccountNow card. This card will help you rebuild your credit. </li></ul>
    12. 12. Protect Your Credit <ul><li>Know your credit limit and never exceed it </li></ul><ul><li>Never use a credit card to get cash </li></ul><ul><li>Charge only as much as you can actually repay </li></ul><ul><li>Pay more than the minimum </li></ul><ul><li>Pay your balance on the due date </li></ul><ul><li>Don’t accumulate too much debt </li></ul><ul><li>Avoid penalty fees and rates </li></ul><ul><li>Consider optional fee-based services carefully </li></ul><ul><li>Order your free credit report online </li></ul><ul><li>Monitor your credit </li></ul>
    13. 13. Bad Credit Channel <ul><li>Are you currently living with bad credit? </li></ul><ul><li>Visit http://www.badcreditchannel.com for information and tips on how to live with bad credit, how to repair credit, purchase a car, and much more. </li></ul>

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