The applicant must be active users of CBE Birr for at least three months, have a minimum deposit of ¼ of the loan to be taken, score the minimum requirement, pay a 7% credit / facilitation fee, repay the loan within a month, extend the repayment for an additional 30 days, charge an additional facilitation fee of 7% plus 2% penalty charge per month on the outstanding loan balance, and have a maximum amount of loan of Birr 30,000. The credit amount and facilitation fee shall be deducted automatically when the customer account is credited with any amount from cash-in or receive money P2P (Peer- to- Peer) transfer. Business loans as a product is customer friendly, and easy to execute with Minimum documentation in a certain time frame . if you Don’t have any marketable property, or amount required is not justified against the market value of property this is the right product For you. This is the only product where end use of funds can be flexible as per your business needs .This is suitable also for rapidly growing businesses Requiring funds to scale up to next level. Self Employed including Individual Proprietors, Private Ltd. Co. and Partnership Firms involved in the Business of Manufacturing, Trading or Services. With: • Minimum Turnover of Rs. 40 Lakhs. • Years in business: Minimum of 3 years in current business and 5 years total business experience • Business must be profit making for the last 2 years • Minimum Annual Income (ITR): Rs. 1.5 Lakhs p.a. • Age of Applicant: Min 21 years & Max. 65 years at the time of loan maturity. The applicant must be active users of CBE Birr for at least three months, have a minimum deposit of ¼ of the loan to be taken, score the minimum requirement, pay a 7% credit / facilitation fee, repay the loan within a month, extend the repayment for an additional 30 days, charge an additional facilitation fee of 7% plus 2% penalty charge per month on the outstanding loan balance, and have a maximum amount of loan of Birr 30,000. The credit amount and facilitation fee shall be deducted automatically when the customer account is credited with any amount from cash-in or receive money P2P (Peer- to- Peer) transfer. Business loans as a product is customer friendly, and easy to execute with Minimum documentation in a certain time frame . if you Don’t have any marketable property, or amount required is not justified against the market value of property this is the right product For you. This is the only product where end use of funds can be flexible as per your business needs .This is suitable also for rapidly growing businesses Requiring funds to scale up to next level. Self Employed including Individual Proprietors, Private Ltd. Co. and Partnership Firms involved in the Business of Manufacturing, Trading or Services. With: • Minimum Turnover of Rs. 40 Lakhs. • Years in business: Minimum of 3 years in current business and 5 years total business experience • Business must be profit maki

1. Establishing Credit
Presented By:

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

3.  Renting an apartment
 Buying a house
 Buying, leasing or renting a car
 Cell Phone Service
 Buying online
 Getting a job
Why do you need credit?

4.  A utility account in your name
 Apply for a credit card and use
responsibly
 Take out a small loan/line of credit
 Cell phone in your name
 Obtain a co-signer for a loan
How to Establish Credit

5.  Bankruptcy
 Missing payments
 Late payments
 Owing lots of money
 Irresponsible credit card use
Ways to damage your credit

6.  Older cards – don’t close them. You want
longevity in your credit history.
 Simplify – close the newest account BUT
not all at once. Your creditworthiness also
considers the ratio of credit used to
available credit.
 SINGLE MOST IMPORTANT indicator of
creditworthiness – paying your bills on
time!
Do’s & Don’ts

7.  Low interest rates
 More options
 Saves you money
Advantages of good credit

8.  High interest rates
 Lack of options
 Spend more money than you have
 Can be turned away
 Unable to get a mortgage!
Disadvantages of Bad Credit

9. Credit Cards

10.  A safe alternative to cash
 Builds a good credit history
 Bails you out of emergencies
 Gives you time to pay
What are the Advantages of
Credit Cards?

11.  What is the interest rate?
 Are there additional fees?
 How much is the payment and when is it
due?
 What happens if I can’t pay my bill?
Things to Know

12. Paying the Minimum Balance
- Courtesy of Freddie Mac

13.  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
Tips for Using Credit Cards

14. Some of your rights:
 You must be told if your file has been
used against you
 You have the right to know what is in
your file
 You have the right to ask for a credit
score
Fair Credit Reporting Act

15.  A record of your personal financial
history.
 A transcript of all your financial data,
positives and negatives.
Credit History

16. Credit Report
 Financial report
card
 Identifying
information
 Credit History
 Public records
information
 Inquiries
 Collections actions

17.  Under the Fair Credit Reporting Act, you
have the right to get a copy of your
credit report from a credit bureau once
a year for free.
 www.annualcreditreport.com
Credit Report

18. 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.

19.  Experian
 TransUnion
 Equifax
Credit Bureau

20. How FICO Scores are
Calculated
 35% Payment history
 30% What you owe
 15% Type of credit
 10% New accounts
 10% Length of credit
history

21. 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.

22. Questions?