Slide MGT312 Slide04

Building and Maintaining

Building and Maintaining

Good Credit

Good Credit

Advantages of Credit

•Convenience.

•_Emergencies.

•Security.

Disadvantages of Credit

•Lower financial flexibility.

•_{Temptation of spending more money.}

•Costly interest.

Debt Limits

•Debt payments-to-disposable income method.

•Debt-to-equity method.

Credit Approval Process

•Application.

•_{Credit report.}

Building a Credit History

•Establish checking and savings accounts.

•_{Pay bill using own name.}

•Pay bills promptly.

•Apply for credit card.