Your Good Credit

Extension AgentContact Information

Adapted from Georgia Cooperative Extension

Five C’s of Credit

• Character• Capacity• Collateral• Capital• Conditions

Free Credit Reports

• Fair and Accurate Credit Transactions Act

– (http://www.annualcreditreport.com)

– or call (toll free) 1-877.322.8228.

Information in Credit Reports

• Personal Information• Credit History• Inquiries• Public Records

Credit Averages

Your Credit Score

Payment History

Amount Owed

Length of History

Type of Credit

New Credit

Determining Your Credit Score

385?

510?

690?

745?

Where you borrow makes a difference

Pawnshops

Rent-to-Own Car Title loans Pay-Day loans

Refund Anticipation Loans

Secured Credit Cards “ Buy Here, Pay Here” Car Lot Loans

Retail Credit Cards Other High Interest Credit Cards

Consumer and Sales Finance Company Loans Debt Consolidation Loans

Home Equity Lines of Credit Personal Lines of CreditUnsecured Bank credit Cards Bank Loans Secured by

Large Purchases Subprime Mortgages

Signature Loans Premium Credit Cards Home Equity Loans Travel &Entertainment Cards Unsecured Bank Loans

Prime Home Mortgages Loans against cash-value Insurance policies Interest-free Programs Free or reduced interest rate loan or credit card offers

Least

Expen

sive/L

owes

t

Inter

est R

ates /

Good C

redi

t

Most Expensive/H

ighest Interest Rates/

Bad Credit

Credit Dangers

• Using credit cards to live beyond your means.• Relying on creditors to set your credit limit.• Carrying a balance on credit cards.• Making only the minimum payment on credit

cards.• Buying the wrong items on credit.

Your Good Credit Depends on You

• Check your credit report…often.• Address negatives on your report.• Avoid adding negative information.• Shop around for the best terms.• Use credit wisely.