What would be considered good credit?. On average how many credit cards does the average household have?. How do credit cards make money?. Video. Who are credit card companies best and worst customers?.
Download Presentation - The PPT/PDF document "Credit Bell Ringer Is a credit card good..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Credit Bell Ringer Is a credit card good or bad?
Presentation on theme: "Credit Bell Ringer Is a credit card good or bad?"— Presentation transcript:
Is a credit card good or bad?
What would be considered good credit?
On average how many credit cards does the average household have?
How do credit cards make money?Slide3
Who are credit card companies best and worst customers?
Should people use credit cards as an emergency fund? Why or why not.
Chapter 4 - CreditSlide5
Credit and Installment Debt Terms
- is receiving funds either directly or indirectly to buy goods and services today with the promise to pay for them in the future
- The amount that was originally borrowed
- the amount that the borrower must pay for the use of someone else’s funds
Credit and Installment Debt Terms
- One of the most common types of debt, this loan requires equal payments over time
Period - the term used for the length of time of the loan
- goods that last longer than 3 years and are often purchased using credit
- installment debt on real property such as houses, buildings or land.
Largest form of installment debt in the countrySlide11
Pay Now or Pay Later!
$1,000 Installment Loan at 9% Interest
Term of Loan
Why People Use Credit - Advantages
“Buy now, pay later”
Using credit allows the borrower to enjoy consumption now rather than later
Items that are too expensive would often take too long to save for
Builds/establishes your credit history & credit score
Useful for emergencies
Often required to hold a reservation
Easy form of debt consolidation
Protection against rip-offs and fraudSlide13
Credit - Disadvantages
Missed payments hurt your score
Opening too many cards hurts your score
Late Fees, Finance charges
Going over credit limit
Interest is costly
Tempting to overspend
Privacy is an increasing concern
Personally responsible for lost/stolen cards
Identity theft easier
Can lose financial freedom from overspending Slide14
Checklist for Buying on Credit
The following questions should help you in determining whether to use credit or not.
Do I really
this item? Can I
purchasing this item until later?
If I pay cash, what
will I be giving up
that I could buy with these funds?
If I borrow or use credit, will the
I get from the item I buy be greater than the interest I must pay?
Have I done
shopping for credit?
to use credit now?Slide15
A FICO (Fair Isaac Company) score is an evaluation of a person’s ability to repay debt
It is a number between 300 and 850
A higher number is a better credit score
Indicator of a person’s ability to pay back a loan
A lower score may increase the interest rates a consumer pays or they may not receive credit
The creditor has a greater risk that the individual may not pay back the money they loaned Slide16
Credit cards may influence each component of how an individual’s credit score is calculatedSlide17
Low credit scores will cost individuals more money long-term.
This table is based upon a thirty-year fixed mortgage rate on a $300,000 loan.
30 Year Amount
Credit Scores, cont.
Check your credit score & credit report once a year – but not more than once in 12 months!
If your credit is checked more than once every 12 mos, each inquiry after that starts to hurt your score
3 credit reporting agencies are:
Equifax, Experian, and TransUnion
Credit Bell Ringer Is a credit card good or bad? - Description
What would be considered good credit On average how many credit cards does the average household have How do credit cards make money Video Who are credit card companies best and worst customers ID: 722362 Download Presentation
by . T. Current as of September 2014. U.S. household consumer debt profile:. Average credit card debt: . $15,607. . Average mortgage debt: . $153,500. . Average student loan debt: . $32,656. . In total, American consumers owe:.
Please be advised that any group reservation for 8 persons or more will incur a surcharge of 1000 per person when dining at Sokyo This does not apply to private events and functions SASHIMI Bonito Kunsei Myoga 21 Hay smoked ume charred white aspar
Credit Card Debt Good vs. Bad Debt 12 th Grade Advisory Activity Basic Credit Card Information Credit card average interest rate: 16-17% When credit card bills are paid off within a month, no interest is paid
Consumer Math Unit 3. What do you already know?. Do your parents have credit cards?. Do you have credit cards?. It’s safe to borrow how much?. List out all the things you already know about credit cards and credit scores!.
Session Goals. Greater understanding of the different types of functionality. Top . c. ard . p. olicy . v. iolations . s. een in Procurement . Types of Credit Cards. Procurement. Travel. Procurement & Travel.
Credit Card Reconciliation Process. Banking, Cash collections. . and reconciliation training. :. Today’s training has been design for all departments that are using credit cards, new staff that need to understand the process of reconciling the credit cards. We encourage you to have your PCI compliance test up to date..
Learning Objectives. During this workshop, youth will:. Define credit. Understand the difference between good and bad credit. Correctly fill out a check, deposit slip, and check register. Credit Basics.
Credit cards and charge cards, what is the difference?. A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them. .