Lesson 2:
Credit Introduction
Handout 3
Lecture Notes: Building Credit
Advantages and Disadvantages of Credit
Refer to chart in Checking Unit
Your Responsibilities
- Borrow only what you can repay on time
- Read and understand any contract
- Notify creditor if you cannot meet payments
Are You a Good Credit Candidate? – The three C’s
Character – Will you repay the debt?
Credit use, credit report/history, honesty
Capital – What if you don’t repay the debt?
Collateral (Secured vs. Unsecured)
Capacity – Can you repay the debt?
Steady job, loans, living expenses, dependents
Building a Credit History
- Establish a steady work record
- Pay bills promptly
- Open a successful checking and savings account
- Apply for small loans or credit cards (Co-signer?)
Handouts:
1 |
2 | 3 |
4 |
5 |