Good Credit?Good Credit?

Mrs. Van CampAppleton East High School

Credit/ FICO Score

What does my credit score mean?300…………………..525………………..650……………*……..……750………………………850You need help! Poor Fair Good You rock!

US Median:723

Why is Your Credit Score Important?

• Financial Institutions– Determine APR

• Auto Insurers– Determine Premium

• Employers– Are you a worthy hire?

• Landlords– Are you a reliable tenant?

Students Credit Card Use (Midwest)

Percent with Cards 86%Average Number of Credit Cards 4.9Average Credit Card Debt $3,817Zero Balance 7%Balance $3,000-$7,000 24%Balance Greater than $7,000 16%

Advantages and Disadvantages of Credit Cards

• Advantages– Convenient– On-line purchases– Kick-backs – Can rent a car

• Disadvantages– Easy to overspend– Doesn’t seem like real

money

Managing Credit After High School

• Pay Bills on time• Pay more than the minimum• Buy only what you can afford• Limit the number of credit cards• Pay off the balance every month• Don’t take cash advances• Be aware of:

- Fees - Universal Default- 0% - Terms & Conditions

The Cost of Borrowing

Rachel and Eric

Rachel Eric

Promotional APR 0% 0%

Nominal APR 7.99% 21%

Minimum Monthly Payment

$25.00 $25.00

*promotional rate applies for first 6 months