1 CREDIT CARD TIPS Limit yourself to one cardRead 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 Slide 22: Presenter: Finally, here are some important credit card tips you might want to consider: (click and read the each bullet point as it appears)
2 ADDITIONALLY… Limit cash advances – they come with costly fees and higher rates Protect your identity – never lend your card to a friend Slide 23: Presenter: (click and read bullet point as it appears)
3 Stop Unwanted SolicitorsNational “Do Not Call” registry Curtail pre-approved credit and insurance offers 888.5OptOut Slide 24: Presenter: (text will automatically appear) Want to stop unwanted solicitors from contacting you? Then you should call the National Do Not Call registry at
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 Slide 25: Presenter: Many students borrow from one or more of the federal loan programs each year to help finance their education. Likely three out of four of you in this room have or will have a student loan during your college career. Federal Student loans are attractive financing options for students because they are considered “smart debt” if used wisely (click to advance first bullet point). In addition, federal student loans have a number of benefits that are only available to students enrolled in higher education. Here are a few of those benefits (click and read the remaining bullet points as they appear)
5 SMART BORROWING: FEDERAL STUDENT LOAN PROGRAMSRemember 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 Slide 26: Presenter: Some additional tips about Federal Student Loans (click and read bullet point as it appears)
6 STAFFORD LOAN REPAYMENT CHARTLOAN AMOUNT * MONTHLY PAYMENT INTEREST PAID TOTAL PAYMENTS $10,000 $110.68 $3,283 $13,282 $15,000 $163.53 $4,624 $19,624 $19,000 $207.14 $5,857 $24,857 $27,000 $294.36 $8,323 $35,323 $30,000 $327.07 $9,247 $39,247 $35,000 $381.58 $10,789 $45,789 $40,000 $436.09 $12,330 $52,330 Slide 27: Presenter: Here is a “sample” Stafford Loan Repayment Chart so that you can see approximately what your monthly payment amount would be based on various loan amounts. In addition, we have provided the total interest paid on the loan as well as the total of all payments paid over the repayment period. (click and read repayment table figures) * Interest rate of 5.6%, 10 year repayment period
7 SMART BORROWING: PRIVATE LOAN PROGRAMSShould 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) Slide 28: Presenter: A growing number of students are considering private loan programs in helping them finance their educational costs. As with the Federal Loan Programs, borrowing can be a smart choice if done wisely. However, private loan programs do not offer the same benefits as the federal loan programs. Private Loan programs should be a “last resort” (click to advance first bullet point) option for a student for the following reasons (click and read each of the remaining bullet points as they appear).
8 CREDIT FITNESS: WHY IT IS IMPORTANT!Credit history can impact: Purchasing a car/home The rate you receive on a loan Renting an apartment Auto and life insurance Seeking employment Slide 29: Presenter: Why is it important to have a good credit history? Your credit history is a report card for everyone to see. It tells others about your commitment and responsibility to your current debt and whether you are a “good” risk for additional debt. Remember some debt is a normal part of life but debt not managed well can have adverse consequence on your future and life style. Your credit history can impact: (click and read each bullet point as it appears).
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 Slide 30: Presenter: How do you keep credit fit? Here are some recommendations: (click to advance first bullet point) Monitor and adjust your budget as needed Ensuring that you are sticking to your budget will help prevent you from overspending (click and advance second bullet point) Pay your bills on time Paying debts late cost you a fee and damage your credit. Late payments, collections, and bankruptcies have the greatest negative effect on your credit scores. The most significant factor for having good credit is making all payments on time. Just one missed payment is bad and will impact credit scores negatively. (click and advance third bullet point) If you’re having trouble making your payments on time, evaluate why Consider asking your creditors to move your due date to a different time of the month. Consider signing up for online bill payment service that can be used to remind you before the due date. Ask creditors to lower your rate. Set up a payment plan. (click and advance fourth bullet point) Lower your credit card balances Reduce balances to 35% of your credit limit. Put together a plan to repay your credit card debt. Consider paying off high-rate cards first. (click to advance fifth bullet point) (click to advance sixth bullet point) Be realistic about how much debt you can afford A good measure is no more than 20% of your net income –Young Money
10 Obtain a Free Credit ReportUnder the FACT Act, you can request a free credit report every 12 months from either Equifax, Experian, or TransUnion Go to Call Complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service PO Box Atlanta, GA Slide 31: Presenter: Check your credit at least annually. You can obtain a free credit report at (click to advance and read text box)
11 PROTECTING YOUR IDENTITY…Identity thieves are always on the look out for your personal information… Slide 32: Presenter: (click and read text box)
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 Slide 33: Presenter: What information should I be protecting? Here is a list of items that you should protect from unauthorized individuals: (click and read each bullet item as it appears).
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 Slide 34: Presenter: How do unauthorized individuals get personal information? (click to advance first bullet point) (click to advance second bullet point) What is Skimming? Skimming involves stealing credit and/or debit card numbers by using a special storage device when processing your card. Phishing is when the thief pretends to be with a financial institution or company and sends you spam or pop-up messages to get you to reveal your personal information (click to advance third bullet point) (click to advance fourth bullet point) .
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 Slide 35: Presenter: (click and read each bullet point as it appears).
15 ID THEFT BY PAYMENT METHOD JANUARY 1 – DECEMBER 31, 2007Slide 36: Presenter: (text box will automatically appear) Where does fraud occur? The #1 Fraud is Credit Card Fraud - Approximately 54% of consumers reported credit card fraud -- i.e., a credit card account opened in their name or a "takeover" of their existing credit card account; The #2 Fraud is Communications Services - Approximately 26% reported that the identity thief opened up telephone, cellular, or other utility service in their name; The #3 Fraud is Bank Fraud - Approximately 16% reported that a checking or savings account had been opened in their name, and/or that fraudulent checks had been written; and The #4 Fraud is Fraudulent Loans - Approximately 11% reported that the identity thief obtained a loan, such as a car loan, in their name. Source: Consumer Fraud and Identity Theft Complaint Data, January-December 2007; Federal Trade Commission, February 2008
16 Protect Your Identity! Shred documents before trashing Pre-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 Slide 37: Presenter: How can I protect my identity? (click and read each bullet point as it appears)
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 Slide 38: Presenter: Some additional tips in protecting your identity: (click and read each bullet point as it appears)
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 Slide 39: Presenter: How to know if I am a victim? (click and read each bullet point as it appears).
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 or letter Slide 40: Presenter: What if I am a victim? What should I do? (click and read each bullet point as it appears
20 Identity Theft ResourcesThe Federal Trade Commission Identity Theft Prevention and Survival FDIC The Department of Justice Slide 41: Presenter: Here are some identity theft resources if you have been a victim of identity theft. (Click and read text box).
21 HELPFUL PERSONAL FINANCE WEB RESOURCESStudent Loan Calculators – Debt Management Resource - Investment Planner - Project C.A.S.H.- Free Personal Money Management/Budgeting Software – Personal Money Management Resource – Slide 42: Presenter: Here are a few helpful personal finance and money management web resources that will be helpful to you (click and read text box). I trust that this session has been helpful in enhancing your personal finance skills during and after your college career. Please visit these websites to find valuable tools in helping you take control of your finances; instead of your finances taking control of you! Thank you...