CREDIT

CREDIT

BUILD GOOD CREDIT- WHY?

• proves you are "trustworthy"

• borrow money- pay it back- prove yourself

• good credit score leads to better "terms" down the road

BETTER CREDIT "TERMS"

• Good credit history lets lenders know you're serious

• better (lower) interest rates on loans/credit cards

• fewer requirements (ie: down payments)

BUILD BETTER CREDIT- HOW?

• Pay your bills

• ON-TIME, EVERY TIME

• Borrow money, pay it back

Multiple Select

Why should you worry about having "good credit?"

• better credit terms

• something you can brag about

• it's the adult thing to do

• bad credit is very expensive to live with

HOW DO YOU KNOW WHAT A GOOD SCORE IS?

• Higher the score, the better

• It takes time- remember, it's about building "trust"

HOW DO YOU END UP WITH A BAD SCORE?

• Don't pay your bills

• make late payments

• have too much debt compared to your income level (Debt - Income ratio)

WHAT IS DEBT TO INCOME (DTI) RATION

• Compares monthly debt payments to your income level

• If debt payments are too high compared to your income- DTI is too high..

Multiple Select

What are two ways your credit-worthiness is calculate?

• credit rating

• DTI (Debt to income) ration

• High School GPA

• Number of college acceptances

HOW TO MAKE LIFE HARD..

• Rack up Credit Card debt at a young age

• Select a college major that doesn't result in employment

• Take on unnecessary student debt

• Move out of your parents' house too soon (it may be annoying, but it's cheap!)

• Do "adult things" before you're able to handle the consequences