Sierra College Financial Literacy Workshop, recorded 6.21.18

Workshops and the other group of people are students that are taking out federal student loans It is a requirement to attend these workshops for that also Okay, so let’s go over sap a little bit. If you’re receiving financial aid. You must maintain SAP, satisfactory academic progress, if you fail to maintain that then you end up in this situation Your first semester that you do not pass all your classes or withdraw from your classes. You will be in a warning status If you continue that process then you can end up being terminated Because you’re not maintaining that SAP process So if that happens you will be required to fill out a financial aid reinstatement petition it is sent to the financial aid Advisory Committee for review and then they will review your information you’ll write a letter to them explaining why you’re not meeting SAP and if you’re Approved they will either approve you for the next term to receive financial aid Or you might have to sit out a term for financial aid purposes And not get paid for that term until you bring up your SAP So make sure that you’re passing their classes and if you drop your drop in those classes before the census, okay or add/drop? There’s a couple parts to SAP. The first part. Of course is your grade point average your GPA You must maintain a 2.0 GPA for your term as well as your cumulative So each term if you do bad that term you might be below 2.0 but it’s all gonna count as your cumulative also So keep an eye on your grade point averages as you go along Okay, the next part of SAP is, unit deficiency or your pace the federal government requires students to who receive financial aid to complete their program within 150% of the length of that Program a particular program so at Sierra College, you can actually graduate once you hit sixty credits You can finish your degree. But if you stay until you are past 90 or at 90 you’ve hit that hundred fifty percent Okay, so you can’t continue getting financial aid if you’re not making that pace So at that point what you’ll be required to do is fill out a max unit appeal Along with the education plan from your counselor and a letter of why you haven’t met your degree status yet That also goes to the financial aid committee. They will review it And then if you’re approved for that You must take the classes that are on that SAP in order to receive financial aid I mean that SAP okay, in order to receive financial aid if you take any other classes You don’t get paid for them That purpose of that is to get you going and get you out and get you in the workforce. Okay, get to complete it Keep in mind that anything you transfer in from other colleges will count towards your SAP and your your pace Okay, so keep that in mind. Yes Yes You have to finish your 60 60 % units we can take questions at the end If you don’t mind that way and we can continue because you only have so much time We’ll be here afterwards to answer any of your questions, okay? Once you have reached that 90 percent you do the max unit. Okay, and then if you’re approved you do that SAP Okay, that makes sense okay, so You’re doing this workshop today So if you’re in a SAP situation as you are today, and then next semester, you do, okay? And then you go back into a warning or a termination. You have to come back into this workshop again So anytime you’re in warning or termination you have to you have to do these workshops. Okay? Can’t just do it once. Okay, so now let’s go on to some student loans, the students that are here for only their loan purposes this workshop and the online Entrance counseling that you do is good for two years Okay, so you don’t have to do this every time every semester if you fall out of SAP then yes You need to come in and do the workshop again If you stay with your grades and you’re moving along like you should then this is good for two years. Okay? You’ll be filling out an online promissory note or an npn That is the federal application for your student loans, make sure that you complete it Entirely because it needs to be you can’t leave anything blank on the federal application or be rejected Once you graduate if you transfer or if you drop below six units You will have to do an online exit counseling Okay, even if you like summer if you’re only taking three units, you’re not taken six You should be doing an exit counseling workshop right now Okay, and then once you start back to school Then you can get back into an in-school deferment. You have to be taking six units to being an in-school deferment. Okay The way your loans will be paid. It will be paid in two payments. You’ll get a fall spring payment You’ll get a spring summer payment. If you’re only taking one semester, you’re gonna get it prorated for half your years. Your year’s award obviously if it’s only going for one semester, okay? If you have first-time students under 24 units or you’ve never received federal student loans You will have to have a 30-day wait period before we can disperse those funds to you That’s the federal regulation and you just have to wait 30 days and then you go through the process. Students who have prior loans You have to have six units in order to get an in-school deferment So keep that in mind once you’ve dropped past below six points Then you have to go into some other type of status or forbearance or something Okay, once you begin your repayments You have many options of how you can pay your loan back So make sure when you start making your payments that you contact your lender Or whoever servicing your loan and make sure you look at all those options of repayment Sometimes your payments will be really high and you can lower those payments based on your income. So make sure you check that out We we encourage you to look on the nslds Website this national student loan data system that has all of your information about your student loans on that site and about your Pell grants You have a lifetime limit to your loans and your grant So keep track of that if you plan on going to get a bachelor’s degree And you use all your money here. You’re not gonna have any money to pay for your bachelor’s degree So keep track of how much you’re using and how much you have left. It’s very important Also, I’d like for you to go onto the my ciara website read your policy and procedures for satisfactory active academic progress There’s all kinds of videos You don’t even have to read if you don’t want to they have all kind of good information on that website for you to look Through okay So at the end we will be here for questions. We have three financial aid people here to answer any questions you might have So right now I’m gonna turn it over to Katrina. She’s from Wells Fargo and she’s gonna go through the Literacy part of the workshop. Okay. Thank you So like she said, my name is Katrina, I am a baker at Wells Fargo here down the street And you guys know we’re safe floors right over here on granite drive. We’re about half a mile down the road So I encourage you to ask questions Participate. I know we talked about money people kind of get scared and Kind of tensed up a little bit. So don’t be afraid to participate a little bit. So The first thing I’m gonna start with guys is talking about budgeting So I were in college and we have all these extra expenses. It can kind of seem like where’s all my money go Different ways to help you build a plan to make sure we are not overspending or Ending up where we have one dollar until payday and it’s a week away Or how do I build my credit now? So first thing I always talk about is where are you now Just can’t really figure out where we want to go. And can you figure out where we’re at, right? so the first thing is to set a goal So we’re budgeting Why are you budgeting do we want to save money? Do you want to make it so we have money left over at the end of the week or? If you have kids do we have money for daycare? Am I gonna be able to pay all my bills? Where am I at? I always encourage people to take a minute to write down a goal. Okay, I Have these little tools you guys can pick up if you want on your way out so you can do that There’s tons of them out there, but just ones right here for you. So first thing I would say, what’s our goal? What do we want to do? Do we want to save for school? Do we want to buy a home? Do we want to go on vacation? Do we just want to have money in our account? so we know if our hours are short at work rent is still getting your paid or If you get sick, are you gonna have money to pay for a doctor? Simple things like that, okay The next step is then how do I get there? Well, is anyone in here use GPS? Yeah, okay. So say only will you And I use GPS for everything so you can could the GPS of the financial world is writing it down So you have to figure out where you’re at right now? So your starting point so your starting point? is writing down everything you have to pay obvious up people don’t lie to yourself because this is This is you you’re talking to you’re talking to yourself okay, write down everything from your Netflix to your Hulu’s to your credit cards to your Expenses while you’re in school your books, whatever it may be everything goes on your budget Okay, once we figure out where we’re at, that’s when we started going into. Okay. Now, how do I get to my goal? And that’s usually the hardest part The first two steps are easy. It’s how do I get that? I’m gonna give you some tips on how to get there Okay Overspending is anyone here an impulse buyer Yeah, I never seen Amazon EBay any of those sites? You don’t have guilty pleasures. I can’t even get on Amazon. No problem. I know myself so Does anyone eat out? Okay be honest how many of you guys need out at least three times a week? Right as almost everybody. Okay. I’m right there with you when you’re out where or you’re at school It’s just easier to go pick something up, right? Oh It’s only five bucks or oh, it’s just a dollar menu, right? We’re thinking that as we’re going have you has anyone ever taken their bait statement and sat down and highlighted? That five dollar sandwich here. That’s at McDonald’s, or oh, I just let the Panda real quick Is anyone ever done that before? It’s scary. It’s scary when you sit down and look at it. You’re like that’s where all my money went Okay, so all my money like the subway into the month month, whatever it may be. That’s my problem Subway’s across the street so of a problem So it’s easy that convenience we’re paying for our convenience so All we’re spending is the number one enemy Up a budget or savings plan impulse buying How many of you guys like to upgrade your phone every year Yeah, see I just upgraded it took me about three years to do that. Um, I’m old school. I’ll use a lot of Technology, but do you need that new phone or Do you need to pay for your books for school? This is the kind of things we’re looking at, okay The biggest thing is needs versus your wants and that Overspending how many times is that? A need you ever overspend on paying your rent? Do you pay extra on your rent? Just because it felt like it Anybody know I don’t okay right But I’ll pay extra to go to the movies go out to eat Okay, so we’re taking an inventory of where you’re spending your money. It’s an eye-opener guys I’m telling you I sit down with people everyday and I’m like, all right, I don’t know where it all goes. Okay Well, let’s go you’re saying let’s see everywhere. You used your debit card Save your receipts for a week. Just see what happens Okay, it’s a bit Blow your mind a little bit if you’re eat out a lot Okay, so that’s where we’re getting that knowing where you’re spending your money Is huge. Yeah, cuz we’re we built this budget. We got it. We got a plan in place I’m spending all my money at Burger King we done whatever nice movie Huh? Oh, okay. I see you trying to get it back I Don’t want anything I never play that so Biggest things How many of you guys you don’t have to raise your hands for this, but I can tell you If you don’t have a budget, is that hard to get up a paycheck to paycheck because then when I always feel like man Who gets excited for payday? It’s done it Whether it’s paycheck paycheck, I like to get paid Okay Paycheck to paycheck adds extra stress. You don’t need in your life, right? Money isn’t is a touchy subject and I talk to people they’re like, I don’t know how to break this cycle You’ve done this your whole life. You don’t know anything different, right? So it’s building these habits how to break that paycheck to paycheck and you know, what? It might only be an extra twenty bucks here and there about 20 bucks Can that buy you groceries for a week? How about you guys but I can you get us some mac and cheese and Sandwich meat whatever maybe these sandwiches for a week But all of these things all start with your very first step budgeting, okay So does anybody in here saving for anything yeah, what do you say Okay, so you got two you got two big ones College and house. Those are that’s the top in the top three Okay, that’s huge guess how many of you guys want to buy a house someday? Yeah, good chunk you mo. See you How shoe house is usually cost Yeah here here Rocklin For four to five hundred thousand does anyone have four or five hundred thousand dollars laying around I Don’t That’s not that’s not something every everyday people have laying around So what do we have to do for it? We have to save for it We’ve talked about budgeting. So now we know where we’re at right now How do I save that money? When you go to save money The first thing you should always do is put money away right when you get paid before you pay your bills Before you do anything else you pay yourself first Okay Because is it how many of you would is it easy for you to save twenty bucks when you have a thousand dollars? Cuz it’s just 20 bucks. Right like oh honey. I can save that. No problem You have fifty dollars in your account Is that 20 bucks seem like a lot more at that point, right? You’re like I would have enough to save I just paid all my bills. I only have 20 bucks left over Well, if we put that 20 bucks away at the beginning We budget it a little better with not eating out or whatever. Would you’ve eaten out the only gonna ten dollars No, probably not right. You’re like I gotta make this laugh a little bit can’t go blow this whole ten dollars You have thirty dollars. Like I said, I like 30. It’ll be okay help twenty bucks after I’ll spend this ten bucks Okay, so it’s really building these good habits That are gonna change that and get you to where you want to be Big thing guys I’m going to talk about is loan payments or rent Okay How many of you guys pay rent? yeah, do any of you guys only spend 20% of your pay on that rent is Anybody Know it’s not realistic, right? When we talk about it, we’re talking about twenty or thirty five percent of your income. Should go to your rent. That’s it so we’re taking out big loans or Sometimes people get caught up in student loans ever take it all. That’s okay. I’ll pay you later. No problem Then you get mountain to the world and now I gotta pay those loans, right? If you kept it 10 to 20 percent of what you’re actually making And you’re thinking about that now It’s gonna save you so much time later and money later and I’ll go over Interest rates and things like that when we get to the credit part But budgeting now for your future is huge Okay, so think about that when you go blow all your money yet the lottery Okay, so We’ve talked about budgeting we talked about saving Credit, how do you guys feel like you’re an expert in credit? Yeah, your next word, okay Okay For me personally, I’ve been doing this for about eight years. I Still learning things every day, which is always changing credits abby’s I’m not gonna lie to you guys so There’s gonna be different for everybody. Everybody has a different path I’m gonna give you the basics today and why it’s important and how many of you guys feel like I Kind of know where credit is but I really get it Didn’t feel that way Until you first have this job. I absolutely know. It’s like I know I need it But how do I get how does it work? You don’t think about that stuff you like? Oh, I’m just pay my bills All right Why should I care how many of you have ever tried to? Get a car or an apartment and they’re like, oh you don’t have any credit. Sorry Yeah, so happen for you guys That’s how I found out about credit. I was like, oh you mean I can’t buy this car. I Can’t I can’t have this car. I have money. I can’t have it No, you have to build credit. Does anyone know what credit actually is? Yeah Revolving accounts that’s part of it. Absolutely anybody else Borrowing money right on the money pun intended. Yes, sir Paint it back and stuff. Yeah That’s okay that’s nail on the hip that’s exactly how I describe it it’s building trust So Paul come up to you on the street problem that houston. He knows me. Fuck you make it about hundred dollars Yeah, be like Fred came up to you know, okay. Can I borrow $100 you don’t owe me, right? I can’t give me hundred dollars think I’m gonna pay you back That’s what bass think when you say I don’t have any credit They’re like, we don’t know you we’re gonna give you a hundred bucks Okay if I borrowed money from you every week paid you back every week and Then I came to you and I’m like, hey, man I need like a horn 50 the summer’s I can anyone say that no problem, right? That’s what it’s like to have a good prayer Yeah, exactly as long as you can build that trust with banks, that’s all it takes It sounds really simple It really can be if you understand how to do these steps Okay First thing we always talk about is credit cards Okay. Those are the easiest things to get approved for when you’re first starting out or rebuilding your credit Okay. There’s anyone not know what a credit card is. I can kind of explain that a little bit Everyone kind of gets it borrow money pay back Revolving. Okay. So what that means for you guys when you’re first starting out? Some first tip. I always give people Don’t feel crazy and max it out every time Okay, that’s going to hurt you It’s also going to cost you a lot interest and we’ll go over that in just a second How many of you have gotten a credit card and you’re like I paid on time every time? But I don’t know why my credits not going up or Why is it never getting paid off Center never felt that way anyone? Yeah, so what happens is is When you when you max all your credit cards out people are gonna look at you and say well, how are you gonna pay for other things if you can’t pay these All comes back to that trust, right? So we make that payment We take that two steps forward how to build our credit but then they look at us and like well She still owes a lot of money There’s your step back. So you’re gonna kind of stay stagnant that make sense to everybody here. Yeah, okay so When we’re first starting out looking for these credit cards. Does anyone know APRs? I’ll give you a hint It’s literally written right next to it Yeah, it’s your interest rate Okay, that’s how much they’re gonna charge you if you don’t pay that credit card off any money that moves over to the next month They’re gonna charge the interest off Okay fees how many people like paying for their own money. Does anybody? Know good. Okay. Just checking When you look at when you’re looking at credit cards guys The big tip is a lot of these companies will say oh you have no credit. Yeah. We’ll give you apart Just give us one hundred seventy five dollars activate it one hundred dollars annual fee upfront Do all that credit card company? $275 and you haven’t even spent a dime yet Does anyone think that’s a good idea No, yeah, I didn’t either but a lot of people are doing it. Okay, so don’t be fooled by Your proof no problem. There’s other avenues So we really need to make sure We’re not paying a ton of fees upfront work throughout the year. There’s a ton of them that don’t have any fees at all So making sure you know What you’re getting into before you sign on the dotted line is huge. Okay? Does anyone know how credit cards has anyone ever heard? Oh, you have to leave some money on your credit card for your credit to bill didn’t I never heard that before? Because I hear that I got the number one question I get from people all the time You do not did you want to pay money for your money or rather use Anyone wanna pay for their own? No. Yeah. I got just it So when you leave money on your credit card you’re paying interest on it You pay it off every month new home zero dollars with zero times twenty two percent interest So, yeah zero, so you’re not paying for anything Okay, so it’s not a bad idea to pay them off every month If you can when you’re first starting out, you don’t want to we talked about not putting a lot of money on your credit cards The other thing is is if you’re putting things on there that you’re already paying for we’ve already built this budget, right? Why not use money you’re already using to help yourself out? Do you need gas to get in you’re still in your car get here? That’s money already spending right? Why not put your guest with your credit card to pay it off every month twenty year party spending nut Yep, paychecks a little short this week. I really want some pizza. Okay Those are big no nose Yes We’ll get there I promise I’m getting there, okay So when you’re building your credit score you said is that what your question was You’re building that trap so we go back to that trusting so if you’re paying it off No That’s a question. I possess that that’s What a lot of people think you don’t have to do that soda credit. Okay, you can pay your credit card off every single month Yeah What’s one thing you don’t want to do when you are first building your credit you want to know what a bad thing would be Close it. Yeah, what else? Over the limit those are bad vacation put your vacation on Yeah that you Miss a payment. That’s what we’re looking for. So We want to pay on time your one day late Does anyone know the average? We talk about fees. Does anyone know if the average cost is if you’re a day late on your credit There I’m here on 35 25 higher On the average annoucer average is about 39 dollars. Okay, so it’s about 39 dollars if you’re one day late on that credit card Ha no just the one but When you go 30 days late, does anyone know what happens? hmm You can go to collections what else can happen? Hit your credit. Okay, so that’s why these On-time payments are huge I’ll give you guys an example. I had a customer had a credit score about 740 which isn’t a when we’re looking at credit scores and we’ll get to that One 30-day late payment dropped her score to 696 90 nothing you get right? We were thinking about it. You just went from monnet It’s like a b-minus Anyone want that on their like their grades and school? So you don’t want that on credit report just like a grade 4 Okay So we’re gonna talk about What that looks like if we Keep those balances on there. This is a little example. I’ll give you two examples one with the credit card one with a car Talk about so we take we spend a thousand dollars on our vacation, right? How much interested we pay very less kind of worry over there guys That almost as much as our vacation, can we just pay for two vacations at one time? Huh, yeah, you’re paying 14% over 123 months. That’s if you’re paying that minimum payment So do you think it’s a good idea to leave these bounces on there and pay the minimal payment no What about on this bottom one Look at the interest rate on there. Has anyone seen that credit card out there recently for 8% No Only 2% sound a little more realistic to the people It’s pretty realistic. We’re looking at 22% This is just 14% Does anyone want to pay that you just took yourself to Maui? real cheap trip to Maui Huh? He said 669 dollars in interest Almost double that would you still go to Maui? Put that on your credit card? No Why did we get in that situation because that minimum payments all we could afford in our budget Okay, so it’s really important. We’re not over spending see how this all kind of ties together Yeah, okay Difficulties Oh Sorry guys So when we’re talking about how many of you guys have ever bought a new car Say to everybody who car Ok How many of you guys want to pay double for the car? You just bought? Because anybody I know they sound ridiculous, but I say these questions because when you put it down on paper, that’s what happens Ok, how many of you guys? Have ever gone into your first car And you’re like, okay 22 percent engine. I got a four three hundred dollar payment Who cares? It is 22 percent Interest Three hundred dollars, right? Yeah. I got I can afford that for this brand-new car Somebody break it down. How much did you pay for that car? That was $10,000 in the pain like $20,000 for that same car Well, he ended up with the Sephora focus Tell me that cuz exactly what happened to me in my first car It was like eleven thousand dollars Set twenty two percent interest. It was like a three hundred dollar payment. Also cool. I mean sign me up. I want this car They’re paying twenty three the twenty thousand for that thing, and I got a Ford Focus Okay So why is credit so important I? Had terrible credit my first art Takes time biggest thing is Yeah When I would in home of the pain 49 think 22 Much rather been by her. See how many of you ever knew buyer number one on this car Just look at the bottom of it. Just like the bottom number same car same one be buyer – Yeah, yeah Hey, if you can get below five person you’re doing good, okay Look how much interest just look at your payment $442 for just three hundred and fifty dollars How many of you guys who use an extra hundred bucks a month? Shoot bet baby diapers gas food I Know textbooks too expensive puts a little chunk in some of them Okay Can you guys see just just I just like to put this up here so you could see the numbers of This is the same person. They make the same amount of money. They just have different credit scores this is why credit is so important it ties back to your budget because I’m going to budget while using your budget with 350 than 442 right So keep that so what is good credit This is black and white numbers for you if we put on a grading scale if we go with The bottom category is a gear. Yeah See meet it Okay That should put it in layman’s terms The biggest thing is if you’re going to Your molded number. You should start with the one you should try to achieve When you’re first starting out, it’s a 640. You want to put it on black and white paper? 640 But it’s not so much What this score is it what it’s what goes into it that trucks behind it Right. It’s like any relationship Say a boyfriend a girlfriend, whatever it may be wife’s Husband doesn’t matter You’re in a relationship you have that title, but if there’s no trust there, is that kind of work No same with credit You need to build that trust and build that relationship with these banks now just trust come overnight No, I got to trust somebody one time It’s going to take time to build that okay. So biggest thing I can tell you is don’t get frustrated With take a little bit of time. It’s not going to be right off the bat. Oh, I’m good. I’m great credit. I Paid three credit card payments. I’m good Okay, cuz if you go to buy a car most car car loans or five six seven years You made three car you made three credit card payments. So you made three months of that commitment So we’re gonna trust you for five six years To do that same thing Right, it’s trust we got to build that up Does anyone have any questions around the actual credit score? No, yeah Absolutely, try not to go to specific on that probably keep it general but when you’re first starting out, does anyone know to secure credit card is Yeah, you guys heard of it Yeah so the bank takes your money locks it up basically for safety because That’s that they’re tripped and then they’ll trust you to pay it back. So they want something they can hold on to in order To let you build your credit or borrow money It exactly it’s like they lock it up in the safe and they let you use that Most of them start at 300 bucks you use that $300 and you’re doing it just like a regular credit card, okay You’re still making those monthly payments. You’re still not max in the mouth You want to help yourself? 100% absolutely. Yes 35% as uh, if you want to put a number on it 30 to 35% When we talked about not maxing out your credit cards, so if you’re starting with that $300 secured card $90 Yes There’s other options as well knowing where to find these options and And that’s and that’s not abnormal. You don’t have to stay with your own bank. I would say come talk to me one off and We can go from there. But yeah, so if you’re having trouble getting approved for anything the secured route might be the way to go if you’ve never had credit before While you’re in college is the best time this is when people are like we’re gonna give them a chance They’re doing something to improve their lives. They’re going to school doesn’t matter. How old you are you’re in school this is the time to Remember we talked about these yeah you ever looked at what those fees. Are they say? Oh, don’t worry You’re not to pay any interest on it. You just have to give us five percent upfront You’re paying that right away they’re putting that on there look into So if you close a credit card is anyone hurt closing credit cards is back right you’ve heard that does anyone know why I Heard why? Yeah, you defended that relationship That yes, sir. Yes, ma’am. You got it rather than those so Biggest thing is you’re you’re losing all that history now. All right, all that all that time you put into that relationship is gone Okay up a huge thing the other thing is Yes, it does lower. So we talked about 30 or 35 percent, correct? Well, that’s a Round all your credit that’s out there as follows from revolving Okay, so if you have three credit cards and they all have $300 on them It’s not just the $90 on each card You could have one of them have more than the others as long as the total balance between all of them is 30 That makes sense And so you have the zero of balance when a fight $1 at a credit card even when you know Oh, we have how much they look at that 500 potential event. Is that correct? so they add that we’re going we just blew it from Get up the bridge so That’s kind of like I said Christopher for everybody. But yes and home loans are completely different animal regular credit So I say what off appealing give you some tips on that but don’t want to get too crazy Because that will lead us into that box Yeah My experience because my Easton made a full payment will go up I don’t We’ll just bring it down for 10% Yeah, so you’re going one up at a time Yeah, how many different forms of credit they’re gonna help so I have these little credit guidelines. It says let’s talk credit Everything we talked about is basically on the first two pages What goes into your actual credit score 35 percent of it is only your payment history. It’s only 35 percent Yeah, it’s only part of it so I said this is like your grade but was What goes into it like the essays the test or the homework? What’s more important? Okay So that’s kind of how the credit works as well. They break it down so having 30 percent of it is your current debt or credit card realization You need how much you’ve used their be 35 percent? So when you’re first starting out you have anything you judge it on you get those high balances. That’s why your credit Buster Okay, it’s also why you’re gonna go all the way back up when you’re first learning if you go Shirley great So the other part is your length of your credit history if you can’t do anything to shake down on yourself It’s just going to take time to build that Yeah, the other thing is types of credit that’s a part of it. So not only our credit cards importance but having an auto loan Find a house Different forms of credit they’re gonna be like, oh I can trust her just borrow any kind of money that Trust goes up That make sense Yes, sir Tibet that you recommend the best course of action or some credit Because you haven’t started a right you haven’t built any trust You’re a college now, I would that’s why I said the easiest thing usually to start with it’s a credit card Make sure you know what you’re getting into we talked about looking at fees and interest rates, but really understanding That you shouldn’t have had those high balances and Managing your money with the budget first when someone comes in to me that said they never had spread it before First thing I have them do is build a budget Okay, second thing is talk to them about how it works It depends on the financial institution Everyone has different guidelines but the advantage you guys have over somebody who’s not in school is Based are a lot more trusting with college students than they are. What some of you is not in Polish No all the base talk to the same credit unions so you know what all three credit unions are TransUnion Equifax Experian Right, we got all three of them Those are those are three independent companies that all everybody talks to Okay, so it doesn’t matter what bank you’re using for that they’re still going to talk to the creditors Okay Yes Nice and that already the average is about 40 point difference between all of them Mostly because TransUnion and Experian are so different from each other. You got to remember they’re all independent companies So that you are going to get different Scores it’s like using three different calculators that all calculate something different What they put more emphasis on something then say something the other company does okay, so that’s why it’s important to look at your credit and understand what’s actually on the floor or versus is focusing solely on the score Okay, big thing is inaccuracies. Does anyone know how to access their credit report? Yeah Unless you’re using the free limits the frightened that’s tricky because people think that but like I look at my credit it’s gonna get deep No, not true unless you’re applying for something That’s the only time it’s going to pull your credit and count against you If you’re using Credit Karma, if you’re using I know most of the major banks have on their apps their FICO scores you guys anyone over FICO score is It’s just the boss of all the credit unions pretty much just the middleman just the messenger it’s the calculator It still pulls so then I never got another report said, oh your FICO is a 700 we got that from experience So you ever noticed that it’s because they can pull from all three. Okay, that goes the middleman To try to give those inaccuracies between the differences between all three to give you a more accurate score That makes sense So I think FICO still think about all state credit bureaus cuz that’s what it’s based off of It’s not something eating opinion looking around by itself Give me some range of score. It’s based off those three credit bureaus. So Back to accessing it Credit Karma any of those three ones that you guys talked about or using your bank As a resource most pigs have that Where you can go on to your app or on the computer and they’ll tell you free FICO score it’s only gonna give you one of the bureau’s The other thing is the official website isn’t interested is annual credit That is the official website to go to if you want to get your credit report You get one free pull a year from each credit bureau So It will not affect your credit And you’re getting them directly from Equifax Experian TransUnion. There’s no middleman Annual credit 1/3 a year Right, so when you’re building your credit why is it important to pull that credit report? What are somethings inaccurate on there? Would you want something counting against you when you you’re doing all this work? And then awesome. There’s something on there that I didn’t know this is Right you want to get credit for what you’re doing But it’s so important to know What’s going on this report? Ok Doesn’t it doesn’t affect your credit I use credit card on myself Anybody else Cancel it you just call it’s bearing on the or email you come see me on throw Anybody else that’s my student loan questions You

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