Free Credit Reports
• Fair and Accurate Credit Transactions Act
• Georgia’s Fair Business Practices Act
$8,000 for second car
• Used Car Dealer: $275 down,
$275/month
• Credit Card: $160 month
• Bank Loan: Either $125 or $250 per
month
• Lease: $200/month
The Fine Print
• $275/month @ 36% APR x 70 months = $19,250
• $160/month @ 18% APR x 94 months = $15,040
• $125/month @ 9% x 88 months = $11,000• $250/month @ 6% APR x 35 months = $8,750
• Down payment, fees for excess mileage or wear & tear
New Kitchen Appliances
• Dealer A: All 3 for $58/week with free delivery and free maintenance
• Dealer B: All 3 for $250/month. Delivery is $50 extra. Extended warranties available for additional $100/month
• Dealer C: All 3 for $99/month, plus delivery and extended warranty
• Lay-Away: $300 down plus $10 fee with 6 months to pay off balance
Best Deal?
• A: $58/week x 60 weeks @ 99+% APR = $15,080
• B: $250/month x 12 months @ 0% APR = $3,000 + $1,200 for extended warranty
• C: $99/month x 82 months @ 36% = $8,118
• Layaway: $450/month x 6 months @ 0% + $300 (down) + $10 (fee) = $3,010
Credit Card for Travel and Emergencies
• United Express: $50 annual fee, pay balance in full each month
• BigBusiness Bankcard: $35 annual fee, 15.9% APR on unpaid balance, earn bonus points
• Mistercard: no annual fee, 0% APR for 6 months then 5 points above prime, 29.9% penalty rate
• R.U.Kiddingme Card: no annual fee, 6% APR, purchase only from catalog
The Best Deal
• Not United Express: Must pay balance off in full
• Not BigBusiness Bankcard: $35 fee and high APR (15.9%)
• Mistercard: No fee, but be sure to pay on time to avoid penalty rate of 29.9%
• Not R.U.Kiddingme Card: Catalog too limiting and usually more expensive
$1,500 Family Vacation
• Save $60 per month
• Pay $30 per month on the credit card
• Pay $60 per month on the credit card
• Pay $67.50 per month for a bank loan for 2 years
The Best Choice?
• Saving: 2 years to save enough, and the price will have gone up by then
• Credit Card: $30/month @ 9.9% APR x 65 months = $1,950
• Credit Card: $60/month @ 9.9% APR x 29 months = $1,740
• Bank Loan: $67.50/month @ 5.9% APR x 24 months = $1,620
$850 for Car Repairs
• Save, if he can work.• Title Loan. $1,500 in cash in exchange
for title, set of keys, and $100/month payment.
• Credit Card Cash Advance. Pay $18/month.
• WeFixItFast Card. 10% off cost of repairs.
The Best Deal?
• Saving: not really an option• Car Title Loans: NO!• Credit Card Cash Advance. $18/month @
21.9% APR x 117 months = $2,106• Credit Card. $18/month @ 21.9% APR x
110 months = $1,980• Store Card. $75/month @ 21.9% APR x 12
months = $900
Credit Dangers
• Using credit cards to live beyond your means.
• Relying on creditors to set your credit limit.
• Carrying a balance on credit cards.• Making only the minimum payment on
credit cards.• Buying the wrong items on credit.