building and rebuilding good credit power point presentation

MoneyWi$e Webinar: Good Credit

MoneyWi$e Webinar

Consumer Action and the National Community Reinvestment Coalition welcome you to this financial literacy webinar.

– The training will start shortly.


Training overview

Introductions About MoneyWi$e Teaching Adults Module I: Good Credit Module II: Rebuilding Good Credit

Implementation Materials & Evaluation


About MoneyWi$e

A joint financial education project

of Consumer Action and Capital One

A unique and innovative financial

literacy program that combines free

multilingual publications, train-

the-trainer materials, regional

conferences and funding

opportunities

Learn more at www.money-wise.org


MoneyWi$e Modules

Banking Basics Elder Fraud ID Theft and Account Fraud Keys to Homeownership Micro Business Money Management Personal Bankruptcy Saving to Build Wealth Teens and Money


Teaching Adults

A good teacher of adults– Is people-centered, more interested in people than things, more interested in individuality than conformity, and more interested in finding solutions than following rules.

The teacher must be understanding, flexible, patient, humorous, practical, creative and prepared.

*How to Teach Adults, William A Draves, The Learning Resource Network


Good Credit

Purpose: – To provide workshop participants with an understanding of what credit is, the impact of credit on one’s financial status, and skills for establishing and maintaining good credit

Objective is to learn: – How to establish credit– How to maintain good credit– How to request and read a credit report– What credit scoring is– What your rights as borrower are


Materials

Building and Rebuilding Good Credit brochure

Good Credit Leader’s Guide Lesson Plan PowerPoint Slides


What is credit?

Ability to borrow money or

obtain goods by paying little

or no money at the time of

purchase.

Your promise to pay the

original cost later or over

time plus interest.


Why do you need credit?

Buying a home or renting an apartment

Getting a job Getting phone service Finance an automobile Spreading out payments for expensive items

Qualify for insurance Get a loan Obtain a credit card


Bad creditUnreliable in paying billsBills are paid lateDebts are abandonedFiled for bankruptcy

Good vs. bad credit

Good credit Reliable in paying bills

Companies willing to extend credit


Borrowers’ responsibilities

Borrow only what you can repay

Read and understand the credit

contract

Pay debts promptly

Notify creditor if you cannot

meet payments

Report lost or stolen credit

cards promptly


How can I get credit?

Establish an account– Ask a local company– Find a co-signer– Get a secured credit card

Use it responsibly for a year or two– Pay all bills promptly– Don’t bounce checks


Why is credit denied?

No credit history

Too much outstanding credit

Credit not handled responsibly

in the past

Victim of fraud


What is a credit report?

Record your loans, credit cards, payments and outstanding debts

Lenders report your credit usage to companies called ‘Credit Reporting Bureaus’– Equifax– TransUnion– Experian


What’s on your credit report?

Current and past payment

information

– On-time and late payments

Outstanding credit limits and

balances

Information from public records

Names of companies who have asked

a copy of your report


Who can get a copy of the report?

You

Only those who can prove a

legitimate need

– Banks

– Credit card companies

– Landlords or real estate companies

– Employers


How can you get a copy?

www.annualcreditreport.com

– Experian, TransUnion, Equifax

You’ll need to provide this information:

– Full name

– Social Security number

– Addresses for past 2-5 years, telephone number

– Birthdate


The cost for your credit report

One free copy from each bureau

each year.

Your credit report is also free if

you’ve been denied credit in the

past 60 days, based on your credit

report.

Otherwise, the cost is

approximately $9.


Activity - Credit profiles

Web Profile: Lupita Poll: Score Lupita’s credit:

– Poor– Passable– Good– Excellent

Poll: Do you think Lupita will get the loan?

Chat: Why do you think Lupita will/will not get her second car loan?

MoneyWi$e Webinar: Rebuilding Good Credit

Rebuilding Good Credit

Improve Your Credit - Brochure Rebuilding Your Credit - Guide Lesson Plan with Activities PowerPoint Slides

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QuickTime™ and aTIFF (Uncompressed) decompressor

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Rebuilding Good Credit

By the end of the training participants will understand:– How poor credit can prevent them from doing certain things.

– That it is never too late to start to rebuild good credit.

– What information on a credit report is seen as negative.

– Some ways to improve one’s credit.


Damaged credit

What does bad credit mean to you?

How can bad credit limit your

life?

How do you know if you have bad

credit?


Credit repair companies

Everything a credit repair company can do legally, you can do yourself – Credit repair companies charge money—sometimes lots of money

– No one can legally remove accurate negative information from a credit report.

– If you decide to work with a company, research its offer carefully.


Let’s evaluate some ads

Page 13 - Lesson Plan - Rebuilding Good Credit File– #1 BAD CREDIT? NO CREDIT? NO PROBLEM!

– Guaranteed Loans!

– Consumer Credit Counseling Service.

Poll: Would you respond to ad 1, 2 or 3?


If a collection agency calls…

Respond immediately if you don’t agree that you owe money.

Ask the collection agency to prove that you owe the money.– A collection agency can’t try to collect the debt while its validity is being checked out.


Rebuilding good credit

It takes time and patience

to establish good credit.

Each person’s situation is

different and lenders have

wide-ranging requirements.


Ways to rebuild good credit

Pay your existing credit

accounts on time

Apply for a credit card or

small loan

Find a co-signer

Get a secured credit card


Activity: Secured Credit Cards

Let’s take a few minutes to compare secured credit card offers. - Page 17 - Lesson Plan

Poll: Which credit card offer has the most favorable terms?


Keeping your good credit

Review your credit report at least once a year.

Close unneeded accounts. Pay your bills on time. Apply only for credit that you really need.

If you divorce or separate, make sure that joint accounts are closed.


Implementation

MoneyWi$e: flexible, independent modules that can be tailored and combined to address the needs of your audience

All publications are free for non-profit organizations

Visit www.money-wise.org


Thank you for attending!

Please send us the evaluation!!

Consumer Action:

[email protected]

[email protected]

www.consumer-action.org

www.money-wise.org

building and rebuilding good credit power point presentation

Documents

outstanding credit credit

credit bad credit unreliable

credit brochure

poor credit

ones credit

credit usage

impact of credit

credit scoring