7.3 Protect your Identity

Objective:Understand the importance of managing

and protecting your personal credit….

Protection:

• Report immediately if lost or stolen• Report to police—police report will serve as document

to dispute fraudulent charges on your account• Secure phone numbers of banks, card companies• Secure websites online: https//: and utilize secure

socket layer (SSL) on your software• Don’t share numbers with anyone who calls, same goes

for SSA.• Last four digits of number on bill only• Shred, burn documents with personal numbers or info

What to do if you discover unauthorized activity on your account?

• Report immediately.. Zero Liability- not responsible for charges

• 60 days to report errors to the credit card issuer, they must respond within 30 days

• Don’t wait do this as soon as possible• Card company will defend you in a dispute• Big Advantage over debit card transactions.• ..

Protect your PIN

• Personal Identification Number• Never write on the back of card• Numbers only you would know• Don’t use birthdates, first guess made

Choosing the right credit card

• Pay off at the end of the month- don’t worry about interest rates, look for annual usage fees

• Large purchases- low APR, • Low introductory rate- read carefully, pay off

balances within the intro period, always pay on time,

• SAME AS CASH…..???????• 90 days same as cash• 2 years same as cash

Managing your accounts

• Stick to budget• Follow 20-10 Rule

– Total credit card debt less than 20% of your total annual income

– Monthly payments less than 10 % of your monthly income• Pay as much as possible, avoid minimum payments• Review statements quickly• Set up email alerts, when large or unusual purchases

occur• Check account always

Discussion and Case Studies

• Group Work

Closure

• Quick Quiz