Wheel Deals & Credit Card Wheel Deals & Credit Card SpielsSpiels

Presented by the Department of Presented by the Department of Financial ServicesFinancial Services

……Think before you SignThink before you SignCredit Cards and LoansCredit Cards and Loans

• Your Signature could last a life Your Signature could last a life time.time.

• What you do now will shape your What you do now will shape your future financial statusfuture financial status

Most Common Purchases Most Common Purchases on Crediton Credit

• ClothingClothing• AutomobilesAutomobiles• ElectronicsElectronics• Furniture/AppliancesFurniture/Appliances• Homes, ApartmentsHomes, Apartments• EducationEducation• Fun (vacations, trips, stuff)Fun (vacations, trips, stuff)

Credit SourcesCredit Sources

• BanksBanks• Credit UnionsCredit Unions• Finance CompaniesFinance Companies• Credit card companiesCredit card companies• Pawn Shops, Title Loans, Payday Pawn Shops, Title Loans, Payday

Loans, Check Holders, Loan Sharks, Loans, Check Holders, Loan Sharks, etc.etc.

Interest RatesInterest Rates

• An additional charge to you for the An additional charge to you for the use of their money for an specified use of their money for an specified length of time.length of time.

• Usually expressed as the APRUsually expressed as the APR – annual percentage rate-– annual percentage rate-

Buying a CarBuying a Car

• Needs VS WantsNeeds VS Wants• New or UsedNew or Used• Method of payment, cash or finance.Method of payment, cash or finance.• Reputable, licensed dealership.Reputable, licensed dealership.• Accurate/fair pricing.Accurate/fair pricing.• Warranty or “as is”.Warranty or “as is”.• Interest rates, Insurance costs, Interest rates, Insurance costs,

maintenance/gasoline costs.maintenance/gasoline costs.• Can you pay for it ??? – Live with it?Can you pay for it ??? – Live with it?

Getting the best deal….Getting the best deal….

• Check prices Check prices • Check maintenance/repair reportsCheck maintenance/repair reports• Down paymentDown payment• Mechanical check Mechanical check • Do not fall in love (or at least, Do not fall in love (or at least,

don’t show it)don’t show it)

… … best dealbest deal

• Do not buy on impulseDo not buy on impulse• Do not sign any papers with blank Do not sign any papers with blank

spaces, not fully completedspaces, not fully completed• Get them to explain the payment Get them to explain the payment

scheduleschedule• Ask for the opinion of someone you Ask for the opinion of someone you

trusttrust• Be ready to “walk away”Be ready to “walk away”

… … best dealbest deal

• Get all warranties in writingGet all warranties in writing• Do not drive away just yet…(on-Do not drive away just yet…(on-

the-spot financing)the-spot financing)• Tag and registrationTag and registration• Other hidden costsOther hidden costs

……and you thought it was easyand you thought it was easy

Credit CardsCredit Cards

• Find out about the interest, not Find out about the interest, not only how much but how is it only how much but how is it charged.charged.

• Is there an annual membership Is there an annual membership fee ?fee ?

• Don’t use for unplanned purchases Don’t use for unplanned purchases unless they are emergencies.unless they are emergencies.

… … Credit CardsCredit Cards

• Don’t lend it to a friend.Don’t lend it to a friend.• Pay off the balance as soon as Pay off the balance as soon as

possible.possible.• Don’t have more than one.Don’t have more than one.• Check/verify all charges when the Check/verify all charges when the

statement comes in.statement comes in.• Immediately notify the company of Immediately notify the company of

any inaccurate information.any inaccurate information.

Other safeguards/tips…Other safeguards/tips…

• Do not give any of your personal Do not give any of your personal information to anyone you do not information to anyone you do not know.know.

• Destroy all unsolicited Destroy all unsolicited correspondence, especially “pre-correspondence, especially “pre-approved” credit offers.approved” credit offers.

• Shred all receipts and statements Shred all receipts and statements before discarding.before discarding.

• If your card is lost or stolen….If your card is lost or stolen….

……. Tips.. Tips.

• Do I need “charge protection” Do I need “charge protection” insurance?insurance?

• How about transferring my balance How about transferring my balance to a lower interest card?to a lower interest card?

• They are not “all created equal”.They are not “all created equal”.• Do your homework. Know your Do your homework. Know your

rights as a consumer. Know who to rights as a consumer. Know who to call.call.

Important NumbersImportant Numbers

• Consumer Hotline Consumer Hotline

1-800-848-37921-800-848-3792

Questions ? ? ?Questions ? ? ?

Thank You for your attendance, we Thank You for your attendance, we hope this presentation was useful and hope this presentation was useful and that it may help in handling and that it may help in handling and protecting your finances.protecting your finances.

State of Florida State of Florida

Department of Department of

Financial ServicesFinancial Services