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Ozark Mtn. Bank Presentation
 

Ozark Mtn. Bank Presentation

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This was presentated by the marketing director from a local bank to personal finance students at an area high school.

This was presentated by the marketing director from a local bank to personal finance students at an area high school.

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    Ozark Mtn. Bank Presentation Ozark Mtn. Bank Presentation Presentation Transcript

    • Get Smart About Credit Hollister High School November 12, 2008
    • What is Credit?
      • When a lender issues money or credit to a borrower , there is an understanding that the money will be repaid in a specified amount of time, often in regular installments.
    • What is Credit?
      • The money repaid generally includes the original amount of the loan – the principal – in addition to a fee charged for use of the money – interest. Plus there is a processing fee. When you accept credit you enter into a contractual agreement to repay what you borrowed.
    • Credit Dos
      • DO know the power of credit.
    • Credit Dos
      • DO know the power of credit.
      • DO start small.
    • Credit Dos
      • DO know the power of credit.
      • DO start small.
      • DO put your full legal name on all applications and be consistent.
    • Credit Dos
      • DO know the power of credit.
      • DO start small.
      • DO put your full legal name on all applications and be consistent.
      • DO read the fine print on the credit application.
    • Credit Dos
      • DO understand the Annual Percentage Rate or APR.
    • Credit Dos
      • DO understand the Annual Percentage Rate or APR.
      • DO set a budget and stick to it.
    • Credit Dos
      • DO understand the Annual Percentage Rate or APR.
      • DO set a budget and stick to it.
      • DO keep your credit card in a secure place.
    • Credit Dos
      • DO understand the Annual Percentage Rate or APR.
      • DO set a budget and stick to it.
      • DO keep your credit card in a secure place.
      • DO order a copy of your credit report annually. (www.annualcreditreport.com)
    • Credit Don’ts
      • DON’T feel pressure to get a credit card.
    • Credit Don’ts
      • DON’T feel pressure to get a credit card.
      • DON’T open a lot of credit accounts within a short period of time.
    • Credit Don’ts
      • DON’T feel pressure to get a credit card.
      • DON’T open a lot of credit accounts within a short period of time.
      • DON’T pay your bills late.
    • Credit Don’ts
      • DON’T feel pressure to get a credit card.
      • DON’T open a lot of credit accounts within a short period of time.
      • DON’T pay your bills late.
      • DON’T sign up without shopping
      • around for interest rate & annual fee
    • Credit Don’ts
      • DON’T spend more than you can afford.
    • Credit Don’ts
      • DON’T spend more than you can afford.
      • DON’T just pay the minimum amount due.
    • Credit Don’ts
      • DON’T spend more than you can afford.
      • DON’T just pay the minimum amount due.
      • DON’T share your credit card number or your PIN number.
    • What’s in your Credit Score
      • Identifying Information
      • Your name, address, Social Security number, date of birth and employment information are used to identify you. These factors are not used in credit scoring. Updates to this information come from information you supply to lenders.
    • What’s in your Credit Score
      • Trade Lines
      • These are your credit accounts. Lenders report on each account you have established with them. They report the type of account (bankcard, auto loan, mortgage, etc), the date you opened the account, your credit limit or loan amount, the account balance and your payment history.
    • What’s in your Credit Score
      • Credit Inquiries
      • When you apply for a loan, you authorize your lender to ask for a copy of your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of everyone who accessed your credit report within the last two years. The report you see lists both "voluntary" inquiries, spurred by your own requests for credit, and "involuntary" inquires, such as when lenders order your report so as to make you a pre-approved credit offer in the mail.
    • What’s in your Credit Score
      • Public Record & Collection Items.
      • Credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.
    • What’s in your Credit Score
      • Credit Scores range
      • from 300 - 850
      • 700 – 850 = Excellent
      • 650 – 700 = Average
      • Below 650 = Needs Work
      • This range will vary from lender to lender
    • Bank Products
      • Checking Accounts
        • Debit Cards
        • Credit Cards
    • Bank Products
      • Checking Accounts
        • Debit Cards
        • Credit Cards
      • Savings Accounts
    • Bank Products
      • Checking Accounts
        • Debit Cards
        • Credit Cards
      • Savings Accounts
      • Certificate of Deposits (CDs)
    • Bank Products
      • Checking Accounts
        • Debit Cards
        • Credit Cards
      • Savings Accounts
      • Certificate of Deposits (CDs)
      • Installment Loans
    • Bank Products
      • Checking Accounts
        • Debit Cards
        • Credit Cards
      • Savings Accounts
      • Certificate of Deposits (CDs)
      • Installment Loans
      • Mortgage Loans
    • Bank Products
      • Checking Accounts
        • Debit Cards
        • Credit Cards
      • Savings Accounts
      • Certificate of Deposits (CDs)
      • Installment Loans
      • Mortgage Loans
      • Commercial Loans
    • Checking Accounts
      • Many different types (free, interest, etc.)
      • Must be 18 or older (or have
      • parent/guardian on the account)
      • Must have a photo identification, social
      • security number and physical address
      • Able to access your account online
    • Checking Accounts Applications for most forms of credit will ask for both types of accounts. Demonstrating you can save money and manage a checking account can improve your standing as a loan candidate.
    • Debit Cards
      • Money comes directly out of your account
      • Easier than carrying cash
      • NEVER share your PIN
      • Keep track of your purchases
    • Credit Cards
      • Receive a bill once a month
      • Easier than carrying cash
      • NEVER give your card to someone else
      • Good idea to never spend more than you
      • can afford.
    • Savings Accounts
      • Limited Access
      • Pays more interest than checking
      • Rainy Day Fund
    • Certificates of Deposits
      • Often referred to as CDs
      • Pays a lot more interest
      • Can’t access the money for a period of
      • time without penalty
    • Installment Loans
      • Also called Personal Loans
      • Often used to buy a vehicle
      • Have to give collateral
      • Make monthly payments for up to five
      • years generally
    • Installment Loans
      • Borrow $10,000 for 48 mo. for ’04 vehicle
    • Installment Loans
      • Borrow $10,000 for 48 mo. for ’04 vehicle
      • 8.25% =$245.30/mo. = $11,775 total
    • Installment Loans
      • Borrow $10,000 for 48 mo. for ’04 vehicle
      • 8.25% =$245.30/mo. = $11,775 total
      • 9.95% = $253.39/mo = $12,163 total
    • Installment Loans
      • Borrow $10,000 for 48 mo. for ’04 vehicle
      • 8.25% =$245.30/mo. = $11,775 total
      • 9.95% = $253.39/mo = $12,163 total
      • 22.00% = $315.06/mo = $15,123 total
    • Installment Loans
      • Borrow $10,000 for 48 mo. for ’04 vehicle
      • 8.25% =$245.30/mo. - $11,775 total
      • 9.95% = $253.39/mo - $12,163 total
      • 22.00% = $315.06/mo - $15,123 total
      • Buy Here, Pay Here or Payday Loans
    • Mortgage Loans
      • Also called Home Loans
      • Collateral
      • Make monthly payments for up to 30
      • years generally
      • A.R.M.’s vs. Conventional Loans
    • Commercial Loans
      • Also called Business Loans
      • Often used to buy or start a business
      • Collateral
      • Make monthly payments for up to 15
      • years generally
    • Tips to Manage Debt Responsibly
      • Are you aware of all of your monthly payments?
      • This may seem obvious but many people have no idea what their total debt burden is each month.
    • Tips to Manage Debt Responsibly
      • Do you pay your bills on time?
      • In addition to protecting your credit history, you will avoid costly fees and late charges. For example, if you are often late paying your credit card bills, you may see your interest rate increase.
    • Tips to Manage Debt Responsibly
      • Do you record all your debit transactions?
      • In addition to keeping your account in order, you will also avoid costly fees from being overdrawn.
    • Tips to Manage Debt Responsibly
      • Do you protect your credit information?
      • Don’t become a victim of credit fraud! Keep all of your records in a safe and secure place. Never give out personal financial information over the phone or via an e-mail.
    • Tips to Manage Debt Responsibly
      • Do you check your account on a regular basis?
      • It used to be a standard recommendation to check your bank statement each month. Now you can access your account via online banking and look for transactions that don’t make sense to you.
    • Identity Theft
      • Someone assumes your identity to make
      • purchases
      • Never reply to e-mails or text messages
      • asking you for personal information
      • (phishing)
      • Careful with your personal information
    • True or False?
      • Fraud and Identity theft are so uncommon that it can’t happen to me.
    • True or False?
      • Fraud and Identity theft are so uncommon that it can’t happen to me.
      • As long as you have a credit card you don’t need an emergency savings fund.
    • Guarding Your Credit from Identity Thieves
      • Order copies of your credit report once a year to ensure they are accurate. www.annual creditreport.com
    • Guarding Your Credit from Identity Thieves
      • Order copies of your credit report once a year to ensure they are accurate. www.annual creditreport.com
      • Keep an eye on your accounts throughout the year by reading your monthly/periodic statements thoroughly.
    • Guarding Your Credit from Identity Thieves
      • Tear up or shred pre-approved credit offers, receipts and other personal information that link your name to account numbers.
    • Guarding Your Credit from Identity Thieves
      • Tear up or shred pre-approved credit offers, receipts and other personal information that link your name to account numbers.
      • Know your billing cycles and take action if you think mail is missing.
    • Guarding Your Credit from Identity Thieves
      • Tear up or shred pre-approved credit offers, receipts and other personal information that link your name to account numbers.
      • Know your billing cycles and take action if you think mail is missing.
      • When you pay bills, don’t put them in your mailbox with the red flag up.
    • Guarding Your Credit from Identity Thieves
      • Protect your account information.
    • Guarding Your Credit from Identity Thieves
      • Protect your account information.
      • Don’t carry your Social Security card, passport or birth certificate unless you need it that day.
    • Guarding Your Credit from Identity Thieves
      • Protect your account information.
      • Don’t carry your Social Security card, passport or birth certificate unless you need it that day.
      • Never provide personal or credit card information over the phone, unless you initiated the call.
    • Budgeting
      • What is your current income?
    • Budgeting
      • What is your current income?
      • What are your monthly credit obligations?
    • Budgeting
      • What is your current income?
      • What are your monthly credit obligations?
      • What are your monthly rent or mortgage expenses?
    • Budgeting
      • What is your current income?
      • What are your monthly credit obligations?
      • What are your monthly rent or mortgage expenses?
      • What are your monthly expenses?
    • Questions?
    • Thank you! Hollister High School November 12, 2008