What is your credit - Master Your Card...3 Master Your Card is a community empowerment program that...

What is your credit score?

A community empowerment program brought to you by MasterCard®

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Understand what a credit score is so you can make sure you’re making

smart decisions right from the start.

Master Your Card A community empowerment program brought to you by MasterCard®

3

Master Your Card is a community

empowerment program that helps

you get the most from your money through

prepaid, credit and debit cards.


Mastercard is a technology company that builds safe, smart and simple solutions for making payments

and purchases.

4Master Your Card A community empowerment program brought to you by MasterCard®

Your credit,

your future

What’s a credit rating and why do I always hear people talking about it?


A credit rating or credit score is what lenders, banks, landlords and others use to evaluate your financial strength.


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Credit scores change over time, ranging from

about 300 to more than 850.

300 850Master Your Card A community empowerment program brought to you by MasterCard®

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A number of thingsinfluence your credit score.


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10%New credit

10%Types of credit used

15%Credit history length

30%Amounts owed

35%Payment history

A number of thingsinfluence your credit score.


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EXC

ELLE

NT

740-850 Higher scores will save you money. The higher the score, the lower the interest rate you will pay.

GO

OD 620-740 Improve your score by paying your bills on time

and keeping your balances low.

POO

R 300-620 Financial institutions consider you a greater risk. You may not be approved for a loan at all.


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EXC

ELLE

NT

Higher score=lower ratesPO

OR Lower score=higher rates

as low as

7.9% as high as

28.9%


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EXC

ELLE

NT



as low as

5.1% as high as

18.9%


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EXC

ELLE

NT



as low as

3.9% as high as

9.5%


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Typical $160,000 loan with a 30-year fixed mortgage

Typical 5-year auto loan of $25,000

Credit card rates may vary due to different factors

Credit scores offer lenders an idea of how much risk you might pose

EXC

ELLE

NT

740-850 3.9%APPROXIMATE

5.1%APPROXIMATE

8.0%APPROXIMATE

Higher scores will save you money. The higher the score, the lower the interest rate

you will pay.

GO

OD 620-740 4.6%

APPROXIMATE

8.8%APPROXIMATE

13.1%APPROXIMATE

Improve your score by paying your bills on time and keeping your

balances low.

POO

R 300-620 9.1%APPROXIMATE

18.4%APPROXIMATE

24.4%APPROXIMATE

Financial institutions consider you a

greater risk. You may not be approved for

a loan at all.


Good credit opens doors

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Follow these simple rules for a high credit score and a low-stress

financial future.


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• Pay your bills on time.

• Pay off monthly balances in full.

• Know your credit limit and don’t go over it.

• Keep your monthly balance low.

• Pay off debt rather than move it around.

• Read the fine print to know about fees and how to avoid them.

• Use your phone to monitor your balance.

• Review your credit report regularly with free annual reports, and dispute any inaccuracies right away.

• Report lost or stolen cards right away.

• Take advantage of special products and tools.

• Set smart spending limits—you can tell the bank what your max limit should be.

Do


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Don’t• Don’t close unused credit cards.

• Don’t open multiple accounts in a short period of time.

• Don’t let someone else in the family open up a card in your name.


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But more than anything,


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borrow only what you can

repay!


Thank you

To get the most value from electronic payments, visit www.masteryourcardUSA.org

What is your credit - Master Your Card...3 Master Your Card is a community empowerment program that...

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