CREDIT REPAIR SEMINAR - New York Public Library
[Pages:42]What We Need to Know About....
Credit Management & Credit Repair for Entrepreneurs
What is Credit?
{ When someone lends you money, and you pay them back with interest, they have "extended you credit."
{ Credit is the ability to borrow money and manage it responsibly.
{ Buy now, pay tomorrow.
Why is Credit Important for Me?
Credit helps a business: Credit helps a person:
{ Grow
{ Buy a home
{ Buy inventory
{ Rent an apartment
{ Publicity
{ Borrow more money
{ Buy equipment
{ Finance a car
{ Obtain working capital { Get an insurance policy
Credit for an Entrepreneur
Why is credit important for a small business owner?
{ Your personal credit will be checked when applying for loans
{ A lender will want to see that you can handle your personal finances before they lend you money for a business.
Debit vs. Credit?
Debit Cards
Credit Cards
{ Use your own money to buy { Use the card agency's
things
money to buy things
{ Can spend only what you { Can spend more than you
have
have, up to a given limit
{ Withdrawn directly from your { Purchases collected into an
account by computer
account that you pay
{ No bills ? purchases show on monthly
your monthly checking
{ Charge interest if you don't
statement
pay full balance each month
{ No interest charged
Cost of Credit
{ Principal is the amount of money you are borrowing.
{ Interest is the amount the lender charges you to let you use their money. It is a percentage of the principal (charged per year, month, or week.)
{ Fees cover the lender's costs to review your credit application or to service your account (maintenance fees, service charges, late fees)
Understanding Terms and Conditions
Term of the loan (length of time you have to pay back)
Amount $15,000 $15,000
Term 3 years 5 years
Interest 10%
Monthly Pmt.
$484
Total Interest
$2,424
Total Cost
$17,424
10%
$319 $4,122 $19,122
Interest Rate
Amount Term
$15,000 $15,000
5 years 5 years
Interest Monthly Total Pmt. Interest
10%
$319
$4,122
25%
$440 $11,416
Total Cost $19,122
$26,416
Understanding Terms and Conditions
Penalties and Transaction Fees for late payments and/or exceeding your credit limit
Example: You have a credit card with a $1,000 limit. You have charged $990 on the card. There is a $19 penalty for late payments AND charges over the limit. Your payment date is due April 1. You mailed your payment on March 30 and it gets posted on your account April 2. You will be charged $38 ($19 for late payment, $19 for over the limit)
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- section topic page
- maine bureau of consumer credit protection
- credit repair seminar new york public library
- credit — friend or foe
- your guide to understanding business credit
- sba information notice
- how to obtain 50 000 unsecured line of credit for your
- progress loans update
- mortgagee letter 2005 50 to all approved
Related searches
- new york public school calendar 2019 20
- new york public school jobs
- new york public schools employment
- new york public schools calendar 2019
- new york public schools jobs
- new york public school calendar 2020 2021
- new york public school holidays
- new york public service commission
- new york public service commission filings
- new york public court records search
- new york public school dashboard
- new york public schools closings