Personal Financial Literacy - Credit January 15,

Transcript:Personal Financial Literacy - Credit January 15,:
Personal Financial Literacy - Credit January 15, 2016 Bart Flewelling—Presenter Personal Credit Agenda Introduction and Overview of Personal Credit What are the differences between debit and credit cards? What is a check register? What is credit history and credit reports? Introduction of Presenter Bart Flewelling Worked for: Capital One Toyota MCI Worldcom (now Verizon) Jobs include: Project Management Fraud Investigator Credit Analyst Banks…Friend or Foe? Banks set up checking, savings, retirement, credit card and many other types of accounts Banks can help you establish credit history and a good credit score Banks are required by law to make sure they do not give you more credit than you can pay for Banks will charge you fees, many fees, for establishing and using bank accounts ATM fees for cash Late fees for late payments Interest charges for credit accounts Banks can negatively affect your credit history if you pay late or less than the minimum Either way, Banks are the most common method of establishing and maintaining personal credit! Debit Cards vs Credit Cards Debit Card Card doesn’t cost anything to use Any transactions debited (deducted) directly from your bank account balance Option of using PIN for greater security at point of sale If debit card is stolen, liability for fraud charges can be up to $500 Credit Card Card may have high interest rate added to fees for which you must make a monthly payment Any transactions are credited (added) to your credit card balance Only time you use PIN is to withdraw cash If credit card stolen, usually $0 liability for fraud Both Most banks can issue debit or credit cards Both cards allow you to withdraw cash or be used at point of sale to buy things Check Register What is it? A check register is a way for you to keep track of all checks, cash withdrawals, and debit card transactions By knowing what you’ve spent, you can keep track of how much money you have left in your account Why do you need it? While one can keep track of transactions on-line (and download them), the register is a quick way to remember on what you spent your money You will want to avoid what is known as an “Over Draft” as that means you have spent more than what is in your account If you have an Over Draft, you will often be charged a