Credit and You

Jackie Ingram
Angelique Rojo
Yazmin Gonzalez
Mark Edmonds
Lashala Wesley

Hands on Banking
2011, 2015 Wells Fargo Bank, N.A. All rights reserved.

Please note: This presentation cannot be altered in any way without first contacting Hands on Banking.
FOR USE WITH IN PERSON PRESENTATIONS ONLY.
Keeping Promises

What does it mean to take personal responsibility for

something?

Have you ever borrowed money from someone? What kind

of agreement did you make with them about paying the
money back?

The Get Smart About Credit October initiative hosted annually by the American Bankers Association promotes financial education and helps bring credit
awareness to your community. This presentation today is provided by Wells Fargo as part of its participation in the Get Smart About Credit initiative.
1
Credit Borrowing Money

Credit is the ability to borrow money from a lender with the

promise to pay the money back.

Building good credit can help you get the things you want
a car, college education or a house

2
Personal
Responsibility

Earning credit requires

personal responsibility.

Keep your promise to pay

back the money you owe.

Credit is a privilege.

3
Credit Cards Its a Loan

Using a credit card is like getting

a short-term loan from a bank.

You must pay it back.

You must show a good credit

history.

4
 Credit Card Basics

APR (annual percentage rate)

= interest rate on a credit card

Credit limit = maximum

amount you can borrow

Balance = amount you still

owe

5
Practice

1. You charge $100 on a credit card that has a limit of $300.

The card has an annual percentage rate of 18%. How
long will it take you to pay off the total charge if you pay
$20 a month?

6
Practice

2. At 18% a year, what will the interest be on the unpaid $80

balance at the end of the first month?

7
Practice

3. On the $100 charge, how much will your outstanding

balance be a the end of the first month, if you only make
a payment of $5?

8
Practice

4. Angie is buying an MP3 player for $199 plus 6.5% sales

tax. She decides to pay for it in 2 equal installments on her
credit card over 2 months. If the interest on the credit card
is 18% a year, Angie will pay $4.82 in interest. What is the
real cost of the MP3 player to Angie?

9
Practice

5. Uh oh Angie neglected to make her payment on time.

As a result, the bank charged her a $20 late fee.
Therefore, the total amount Angie ended up paying the
bank was $238.94. Had she paid cash, the MP3 player
would have cost her $211.94. How much did using a credit
card cost her?

10
Wrap-up

Use credit responsibly.

Build a good credit history.

Shop for credit cards with

the best APR, terms and
fees.

Always know your credit

cards APR, credit limit and
balance.

11
To learn more about credit and credit cards
visit handsonbanking.org