Banks & Credit UnionsWhat’s the difference?

Do’s of Checking• Track your expenses• Track your balance• Set up e-alerts or text alerts

Do’s of CheckingGet a “Hold” of Your Debit Card

• What is a Hold?• Authorization for a purchase• Isn’t always the same as your

purchase amount• Be careful at restaurants, gas stations

and hotels

Don’ts of Checking• Don’t only use online banking to know

your balance• Don’t assume the balance on your

ATM receipt is correct

Do’s of Budgeting BUDGET and stick to it!• Write down your income and

expenses• Save! Pay yourself first• Use resources like mint.com• Set limits on food, entertainment,

etc… IN OUT

Do’s of BudgetingHave a money plan:1.Emergency Fund - $10002.Save 3-6 months living expenses3.Pay off debt – first credit then student loans

If Yes:• Request a low credit limit• Get one card

Should You Have a Credit Card?

•Try not to carry a balance• If you do, always pay more than the minimum• Avoid making any cash advances

Example:

$1000 balance, $25 each month at 18% APR = 62 months to payoff and $538.82 in interest

Make the payment $35 = 38 months to payoff and $315.59 in interest

Do’s of Credit Cards

Do’s of Credit• Know your credit score and which type of score you’re given. • Get free copies of your credit report - annualcreditreport.com• Pay bills on time• Try to pay your credit card bill in full each month to avoid any interest fees.• Be a deadbeat

What’s in a credit report?

• Identifying information(name, SSN, date of birth, address)

• Employment history

• Creditors and payment history

• Bankruptcies, judgments, liens, lawsuits

• Inquiries you initiated(loan and credit applications, but not credit card solicitations)

Why care about your credit?

What’s a credit score?• Number that represents creditworthiness

• “How likely are you to repay the loan?”

• Range: • 300 to 850• Good Score is anything above 720

Credit Score Matters

$25,000 Honda Accord for 60 Months

Score Rate Payment Interest• >720 6.49% $489.06 $4,343.36• 680-720 7.99% $506.82 $5,408.79• 640-679 9.49% $524.96 $6,497.10• 600-639 12.49% $562.36 $8,741.47• <600 14.49% $588.13 $10,286.91

Components of a credit score

• Payment history (35% of score)

• Amounts owed to creditors (30%)

• Length of credit history (15%)

• New credit (10%)

• Types of credit currently in use (10%)

35%

30%

15%

10%

10%

Who can look at your credit report?

• Lenders• Landlords• Potential employers • Insurance companies

Student LoansFederal Direct Grad PLUS Loans: 2014-2015

Academic Year• Interest Rate: 7.21%• Origination fee is 4.292%• Applicant cannot have adverse credit

history• Borrow up to the cost of attendance

Do’s of Student Loans• Be involved in your student loan consolidation process

Grad SchoolLoan forgivenessHigh interest/variable rate loansPrepayment penaltiesPerks

•Pay more than the minimum payments

Bonus Tips!• Bring your lunch to school or eat at

home• Save the latte for a treat, not everyday• Rate shop• Utilize discount clothing stores and

consignment shops• Meal plan and make a grocery list ahead

of time to avoid overbuying

Thanks for attending!