Building Credit: Importance, Tips & Credit Score Explained
Learn the significance of building credit and how to start with practical tips provided by Carl-Eric Benzinger at Muhlenberg High School. Understand the concept of credit, credit score, and its impact on financial opportunities such as loans, credit cards, and more. Discover how to establish a solid credit history, track your credit score, and make informed financial decisions for a secure future.
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Presentation Transcript
How to Build Credit Presented by Carl-Eric Benzinger for Muhlenberg High School Grade 11 Dea Bassetti
Muhlenberg High School - Dec 18, 2023 What is Credit?
Credit is the use of someone elses money Credit is the use of someone else s money CAR LOANS LOANS TO BUY A HOUSE (MORTGAGE) CREDIT CARDS STUDENT LOANS GASOLINE OR DEPARTMENT STORE CARDS Muhlenberg High School - Dec 18, 2023
What do we mean by building credit ? Muhlenberg High School - Dec 18, 2023
Building credit means establishing a track record of how we manage the use of manage the use of credit credit. This track record is condensed into a single very important number called our credit score (also known as FICO score) Muhlenberg High School - Dec 18, 2023
Credit Score Muhlenberg High School - Dec 18, 2023
A high score equals financial bargaining power Lower interest rates on loans => big savings over time Why does the Why does the credit score credit score matter? matter? Credit card benefits like cash back or points good for travel Renting an apartment Some jobs check credit too. Muhlenberg High School - Dec 18, 2023
What goes into What goes into the credit score? the credit score? Muhlenberg High School - Dec 18, 2023
How do I get started building credit? Often students @ 18 will receive credit card offers Gas cards and/or department store cards Credit card secured by a savings account Loan secured by a car How do I track my credit score? Get copies from credit bureaus From the bank. Super important to monitor our credit report Muhlenberg High School - Dec 18, 2023
How to Re-build credit Challenge mistakes by contacting the credit bureaus Start where we are: start paying on time and using less credit Negative items (like late payments) drop off the record after a few years. Maintain credit limits even if they re not being used Do NOT pay anyone to repair your credit.It s a sham. Muhlenberg High School - Dec 18, 2023
Credit cards Credit cards Useful financial tool Very tempting to over-use Not all credit cards are created equal. If used well, no interest cost; in fact can be a source of income. If only making minimum payments each month, the cost of what you bought will be more than double by the time you pay it off. Muhlenberg High School - Dec 18, 2023 April 2021
References Other: Reporting Bureau Credit Agencies: Contact Experian Experian.com 888-397-3742 Trans Union Transunion.com 833-395-6938 Equifax Equifax.com 888-378-4329 Online Resources: Bankrate.com Bank websites Muhlenberg High School - Dec 18, 2023
