Unformatted text preview: urself Against Credit Card Fraud Sign new cards and keep secure Shred anything with your account number on it Don’t give your number over the phone unless you initiate the call Keep receipts and compare against statement Notify issuer if you don’t get your billing statement Check your credit report periodically 21 Measuring Your Credit Capacity Before you take out a loan, ask yourself... Can you afford the loan? What do you plan to give up in order to make the payment? What are your future needs for credit capacity, and how will this loan impact that need? For example, buying your first house 22 Cosigning Loans Before cosigning a loan consider... If the person doesn’t pay, you will have to Can you afford to pay if the person does not? It can affect your credit report Request that a copy of overdue payment notices be sent to you
Cosigning loans is a very BAD idea!
23 Credit Capacity Indicators
Debt Payments-to-Income Ratio
Should Be < 20%
monthly after tax income *Not including housing
24 Credit Capacity Indicators
Debt To Equity Ratio
total liabilities = Should be < 1 net worth* *Excluding home value
25 Inexpensive L...
View Full Document
This document was uploaded on 02/12/2014.
- Spring '14