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Credit Basics PP
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- 2. Credit Advantages • Improved standardof living © EMC Publishing, LLC
- 3. Credit Advantages • Improved standardof living • Convenience and safety © EMC Publishing, LLC
- 4. Credit Advantages • Improved standardof living • Convenience and safety • Help in emergencies © EMC Publishing, LLC
- 5. Credit Advantages • Improved standardof living • Convenience and safety • Help in emergencies • Help in record keeping © EMC Publishing, LLC
- 6. Credit Advantages • Improved standardof living • Convenience and safety • Help in emergencies • Help in record keeping • Forced savings (for some) © EMC Publishing, LLC
- 7. Credit Disadvantages • Interest chargesand fees –Grace period –Universal default • Late payments • Over limit • Too much debt / available credit • Too many credit inquiries / new car loan © EMC Publishing, LLC
- 8. Credit Disadvantages • Interest chargesand fees • Increased impulse buying © EMC Publishing, LLC
- 9. Credit Disadvantages • Interest chargesand fees • Increased impulse buying • Financial problems –Bankruptcy © EMC Publishing, LLC
- 10. Which of thefollowing is not an advantage of credit? A. Improved standard of living B. Help in emergencies if purchase is necessary C. Interest charges and fees associated with credit D. Help with record keeping E. Convenience © EMC Publishing, LLC
- 11. Which of thefollowing is not an advantage of credit? A. Improved standard of living B. Help in emergencies if purchase is necessary C. Interest charges and fees associated with credit D. Help with record keeping E. Convenience © EMC Publishing, LLC
- 12. What do youthink? Discussion © EMC Publishing, LLC© EMC Publishing, LLC • Many people say that credit is the American way. How has credit helped Americans live better lives? • Do you know anyone who doesn’t use credit at all? How does he or she get by? • Do you think credit is good or bad?
- 13. Credit Fraud and IdentityTheft • Credit fraud © EMC Publishing, LLC
- 14. Credit Fraud and IdentityTheft • Credit card fraud • Identity theft © EMC Publishing, LLC John A. DoeTimothy B. Jones
- 15. Credit Identity Theft Tips •Don’t give out your Social Security number unless absolutely necessary (give last four digits only). © EMC Publishing, LLC
- 16. Credit Identity Theft Tips •Don’t give out personal information to strangers on phone or over Internet. © EMC Publishing, LLC
- 17. Credit Identity Theft Tips •Remove mail from mailbox as quickly as possible (hold mail if going to be gone). © EMC Publishing, LLC
- 18. Credit Identity Theft Tips •Carefully examine all bills that come in mail / e-mail. © EMC Publishing, LLC
- 19. Credit Identity Theft Tips •Use shredder to destroy personal information. © EMC Publishing, LLC
- 20. Credit Identity Theft Tips •Don’t allow others to look over your shoulder or watch you use credit / debit /ATM cards (skimming). © EMC Publishing, LLC
- 21. Credit Identity Theft Tips •Always keep wallet safely in pocket (buttoned) or purse (securely closed). © EMC Publishing, LLC
- 22. Credit Identity Theft Tips •Keep all receipts and check against credit card / bank statement for transactions you didn’t make. © EMC Publishing, LLC
- 23. Credit Identity Theft Tips •Use secure Web sites if you must send credit or personal information over Internet (https or shttp). © EMC Publishing, LLC
- 24. Credit Reporting Identity Theft •Notify authorities. • Notify creditors. • Don’t pay bills you suspect are fraudulent. © EMC Publishing, LLC
- 25. Which of thefollowing is not a suggestion to help with identity theft? A. Cut up outdated credit cards. B. Shred documents that contain personal information. C. Don’t give out Social Security number unless absolutely necessary. D. Destroy all receipts as soon as possible. E. Securely store wallet. © EMC Publishing, LLC
- 26. Which of thefollowing is not a suggestion to help with identity theft? A. Cut up outdated credit cards. B. Shred documents that contain personal information. C. Don’t give out Social Security number unless absolutely necessary. D. Destroy all receipts as soon as possible. E. Securely store wallet. © EMC Publishing, LLC
- 27. What do youthink? Discussion © EMC Publishing, LLC© EMC Publishing, LLC • Do you know anyone who has had his or her identity stolen? How did he or she deal with it? • What tips do you think are most important to protecting your identity? • What tips would you add to the list?
- 28. Types of Credit Short-TermCredit • Service credit • Installment credit • Credit cards © EMC Publishing, LLC
- 29. Types of Credit Short-TermCredit • Credit vs. charge card –Minimum payment vs. full payment –Annual percentage rate (APR) © EMC Publishing, LLC
- 30. Credit Cards Safeguarding Cards •Cut up expired cards. • Sign backs of cards. • Carry only one or two cards. • Photocopy both sides for records. • Retrieve cards after transactions. • Don’t let others borrow cards. © EMC Publishing, LLC
- 31. Other Cards Not CreditCards • Debit cards • Prepaid cards • Gift cards © EMC Publishing, LLC
- 32. Loans Types of Loans •Personal loans –Secured (collateral) –Unsecured loans © EMC Publishing, LLC
- 33. Loans Types of Loans •Auto loans © EMC Publishing, LLC
- 34. Loans Types of Loans •Student loans © EMC Publishing, LLC
- 35. Loans Types of Loans •Home loans (mortgage) –Fixed vs. variable rate • Home equity loans –Usually variable rate tied to prime © EMC Publishing, LLC
- 36. Loans Types of Loans •Consolidation loans © EMC Publishing, LLC
- 37. Loans Sources of Loans •Banks • Credit unions • Savings and loans (mutual savings banks) • Consumer finance companies © EMC Publishing, LLC
- 38. Loans Sources to AVOID! •Credit card cash advances • Refund anticipation loans • Payday loans • Pawnshops • Loan sharks –Rate limit varies by state © EMC Publishing, LLC Do you want cash back? YES NO
- 39. Which of thefollowing would be the most expensive source for a loan? A. Payday loan B. Reputable bank C. Credit union D. Savings and loan E. Consumer finance company © EMC Publishing, LLC
- 40. Which of thefollowing would be the most expensive source for a loan? A. Payday loan B. Reputable bank C. Credit union D. Savings and loan E. Consumer finance company © EMC Publishing, LLC
- 41. What do youthink? Discussion © EMC Publishing, LLC© EMC Publishing, LLC • Why would someone take a payday or other high-interest loan? What alternatives should she or he consider? • What do you think about taking a loan for your tax refund before you receive it? Is that a good way to purchase something now that you really want?
Editor's Notes
- #38 In the northeast savings and loans are called mutual savings banks