MoneyWi$e Webinar

Consumer Action

and the

National Community Reinvestment Coalition

welcome you to this financial literacy webinar.

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The training will start shortly.

MoneyWi$e Webinar: Good Credit

Training overview

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Introductions About MoneyWi$e Teaching Adults Module I: Good Credit Module II: Rebuilding Good Credit Implementation Materials & Evaluation MoneyWi$e Webinar: Good Credit

About MoneyWi$e

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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 Webinar: Good Credit

MoneyWi$e Modules

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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 MoneyWi$e Webinar: Good Credit

Teaching Adults

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A good teacher of adults

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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.

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

MoneyWi$e Webinar: Good Credit

Good Credit

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Purpose:

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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:

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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 MoneyWi$e Webinar: Good Credit

Materials

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Building and Rebuilding Good Credit brochure Good Credit Leader’s Guide Lesson Plan PowerPoint Slides MoneyWi$e Webinar: Good Credit

What is credit?

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Ability to borrow money or obtain goods by paying little or no money at the time of purchase.

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Your promise to pay the original cost later or over time plus interest.

MoneyWi$e Webinar: Good Credit

Why do you need credit?

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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 MoneyWi$e Webinar: Good Credit

Good vs. bad credit

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Good credit Reliable in paying bills Companies willing to extend credit Bad credit

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Unreliable in paying bills

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Bills are paid late

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Debts are abandoned

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Filed for bankruptcy MoneyWi$e Webinar: Good Credit

Borrowers’ responsibilities

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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 MoneyWi$e Webinar: Good Credit

How can I get credit?

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Establish an account

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Ask a local company Find a co-signer Get a secured credit card

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Use it responsibly for a year or two

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Pay all bills promptly Don’t bounce checks MoneyWi$e Webinar: Good Credit

Why is credit denied?

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No credit history

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Too much outstanding credit

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Credit not handled responsibly in the past

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Victim of fraud MoneyWi$e Webinar: Good Credit

What is a credit report?

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Record your loans, credit cards, payments and outstanding debts

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Lenders report your credit usage to companies called ‘Credit Reporting Bureaus’ Equifax TransUnion Experian MoneyWi$e Webinar: Good Credit

What’s on your credit report?

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Current and past payment information

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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 MoneyWi$e Webinar: Good Credit

Who can get a copy of the report?

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You

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Only those who can prove a legitimate need

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Banks

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Credit card companies

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Landlords or real estate companies

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Employers MoneyWi$e Webinar: Good Credit

How can you get a copy?

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www.annualcreditreport.com

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Experian, TransUnion, Equifax You’ll need to provide this information:

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Full name

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Social Security number

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Addresses for past 2-5 years, telephone number

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Birthdate MoneyWi$e Webinar: Good Credit

The cost for your credit report

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One free copy from each bureau each year.

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Your credit report is also free if you’ve been denied credit in the past 60 days, based on your credit report.

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Otherwise, the cost is approximately $9.

MoneyWi$e Webinar: Good Credit

Activity - Credit profiles

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

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Poor

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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: Good Credit

Rebuilding Good Credit

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Improve Your Credit - Brochure Rebuilding Your Credit - Guide Lesson Plan with Activities PowerPoint Slides MoneyWi$e Webinar: Rebuilding Good Credit

Rebuilding Good Credit

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By the end of the training participants will understand:

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How poor credit can prevent them from doing certain things.

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

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What information on a credit report is seen as negative.

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Some ways to improve one’s credit. MoneyWi$e Webinar: Rebuilding Good Credit

Damaged credit

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What does bad credit mean to you?

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How can bad credit limit your life?

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How do you know if you have bad credit?

MoneyWi$e Webinar: Rebuilding Good Credit

Credit repair companies

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Everything a credit repair company can do legally, you can do yourself

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Credit repair companies charge money— sometimes lots of money

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

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

MoneyWi$e Webinar: Rebuilding Good Credit

Let’s evaluate some ads

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Page 13 - Lesson Plan - Rebuilding Good Credit File

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#1 BAD CREDIT? NO CREDIT? NO PROBLEM!

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Guaranteed Loans!

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Consumer Credit Counseling Service.

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

MoneyWi$e Webinar: Rebuilding Good Credit

If a collection agency calls…

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

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Ask the collection agency to prove that you owe the money.

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A collection agency can’t try to collect the debt while its validity is being checked out.

MoneyWi$e Webinar: Rebuilding Good Credit

Rebuilding good credit

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It takes time and patience to establish good credit.

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Each person’s situation is different and lenders have wide-ranging requirements.

MoneyWi$e Webinar: Rebuilding Good Credit

Ways to rebuild good credit

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Pay your existing credit accounts on time

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Apply for a credit card or small loan

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Find a co-signer

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Get a secured credit card MoneyWi$e Webinar: Rebuilding Good Credit

Activity: Secured Credit Cards

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

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

MoneyWi$e Webinar: Rebuilding Good Credit

Keeping your good credit

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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.

MoneyWi$e Webinar: Rebuilding Good Credit

Implementation

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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

MoneyWi$e Webinar: Rebuilding Good Credit

Thank you for attending!

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Please send us the evaluation!!

Consumer Action: [email protected]

[email protected]

www.consumer-action.org

www.money-wise.org

MoneyWi$e Webinar: Rebuilding Good Credit