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CREDIT CARD TIPS

CREDIT CARD TIPS. Limit yourself to one card Read the fine print regarding rates, fees and introductory offers Make your payments on time, and try to pay more than the minimum Begin with and keep a low credit limit — one you can easily pay off (try $250 or $500)

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CREDIT CARD TIPS

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  1. CREDIT CARD TIPS • Limit yourself to one card • Read the fine print regarding rates, fees and introductory offers • Make your payments on time, and try to pay more than the minimum • Begin with and keep a low credit limit — one you can easily pay off (try $250 or $500) • Know your credit limit and NEVER go over • If you can eat it, wear it, or drink it, don’t charge it! • Think before you charge

  2. ADDITIONALLY… • Limit cash advances – they come with costly fees and higher rates • Protect your identity – never lend your card to a friend

  3. Stop Unwanted Solicitors National “Do Not Call” registry 888.382.1222 www.donotcall.gov/ Curtail pre-approved credit and insurance offers 888.5OptOut

  4. SMART BORROWING:FEDERAL STUDENT LOAN PROGRAMS • “SMART debt”, good investment option if used wisely • Easy access to funds • No credit check involved • Interest paid by the Federal government for neediest students • Many borrow benefits not available to average consumer

  5. SMART BORROWING: FEDERAL STUDENT LOAN PROGRAMS • Remember it is a loan, not free money, it must be repaid back at some point in time • Borrow wisely, only what you need • It is a loan to pay educationally related expenses, not a spring-break trip • Understand the total cost of the loan, (principal and interest) • Defaulting on a student loan will make you ineligible for additional financial aid

  6. STAFFORD LOAN REPAYMENT CHART * Interest rate of 5.6%, 10 year repayment period

  7. SMART BORROWING: PRIVATE LOAN PROGRAMS • Should be a “last resort” loan option after federal loan programs • Usually requires a co-signer, credit check involved, loans can be denied based on no or poor credit history • Higher cost loans, variable interest rate loans, not fixed rates like federal loans • Tier-pricing based on credit history of borrower or co-borrower, good credit gets lowest fees and best interest rate • Principal and interest can be deferred but interest is being added to principal, (interest on interest)

  8. Credit history can impact: Purchasing a car/home The rate you receive on a loan Renting an apartment Auto and life insurance Seeking employment CREDIT FITNESS: WHY IT IS IMPORTANT!

  9. CREDIT FITNESS: WHY IT IS IMPORTANT! • Monitor and adjust your budget as needed • Pay your bills on time • If you’re having trouble, evaluate why • Lower your credit card balances • Pay off the higher interest rates first • Be realistic about how much debt you can afford

  10. Under the FACT Act, you can request a free credit report every 12 months from either Equifax, Experian, or TransUnion Go to www.annualcreditreport.com Call 1.877.322.8228 Complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service PO Box 105281 Atlanta, GA 30348-5281 Obtain a Free Credit Report

  11. PROTECTING YOUR IDENTITY… Identity thieves are always on the look out for your personal information…

  12. PROTECTING YOUR IDENTITY… What should be protected? • Social Security # • Credit Card #s • Bank Account #s • Driver’s License # • Date of Birth • Mother’s maiden name • Personal ID # (PINs) and passwords

  13. PROTECTING YOUR IDENTITY… How do they get your information? • Dumpster diving • Skimming, Phishing • Changing your address • “Old-fashioned” stealing • Wallet/purse • Mail, New Checks or Tax Info • New checks or tax info

  14. PROTECTING YOUR IDENTITY… How is stolen information used? • Change the billing address on your existing credit card accounts and then charge on them • Open new credit card accounts in your name • Access your bank accounts • Take out loans in your name (i.e., auto loans, student loans) • Establish phone or wireless service in your name • Write bad checks in your name

  15. ID THEFT BY PAYMENT METHODJANUARY 1 – DECEMBER 31, 2007 Source: Consumer Fraud and Identity Theft Complaint Data, January-December 2007; Federal Trade Commission, February 2008

  16. Protect Your Identity! • Shred documents before trashingPre-approved credit offers, bank/credit card statements, credit card receipts • Be careful at ATMs, or when using your debit card that others do not see your PIN • Have checks delivered to your bank rather than your home • Do not put checks in the mail from your home mailbox--drop them off at a U.S. Mailbox or the U.S. Post Office • Empty your wallet of all extra credit cards and social security numbers, etc. • Never give out any of your personal information over the phone

  17. Protect Your Identity! • Do not put your social security number on your checks • Do not put your telephone number on your checks • Do not put your credit card account number on the Internet (unless it is encrypted on a secured site) • Don't put account numbers on the outside of envelopes, or on your checks • In conjunction with a credit card sale do not provide your address, telephone number, or driver's license number • Monitor all your bank and credit card statements monthly • Check your credit at least annually

  18. SIGNS THAT YOU MAY BE A VICTIM… • Failing to receive bills or other mail • Receiving cards for which you didn’t apply • Being denied credit, or being offered less favorable credit terms, like a high interest rate when you know your credit is good • Getting calls or letters from debt collectors or businesses about merchandise or services you did not buy

  19. WHAT TO DO IF YOU’RE A VICTIM… • Contact the Federal Trade Commission to report it and get guidance • Call the three major credit bureaus (Equifax, Experian, TransUnion) so they can put an alert on your credit • File a report with your local police department • Contact any businesses where the identity thief fraudulently conducted transactions in your name • Contact your banks and credit card companies • Keep notes on every phone call, meeting, and conversation • Follow-up any phone conversations with an e-mail or letter

  20. Identity Theft Resources The Federal Trade Commissionwww.consumer.gov/idtheft Identity Theft Prevention and Survivalwww.identitytheft.org FDICwww.fdic.gov/consumers/consumer/guard/index.html The Department of Justice www.usdoj.gov/criminal/fraud/idtheft.html

  21. HELPFUL PERSONAL FINANCE WEB RESOURCES • Student Loan Calculators – www.finaid.org • Debt Management Resource - www.salliemae.com/bedebtsavvy • Investment Planner - www.salliemae.com/plan • Project C.A.S.H.- http://www.projectcash.unh.edu/index2.htm • Free Personal Money Management/Budgeting Software – www.mint.com • Personal Money Management Resource – www.doughroller.net

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