Smart Money Monday - National Get Smart About Credit Day Oct. 20 - Hawaii News Now - KGMB and KHNL

Smart Money Monday - National Get Smart About Credit Day Oct. 20th

Posted: Updated:

(HawaiiNewsNow) - Thursday, October 20th is National Get Smart About Credit Day. This is an annual event sponsored by the American Bankers Association Education Foundation where local bankers visit classrooms to deliver a lesson plan on financial education, specifically credit. Here to talk more about National Get Smart About Credit Day is Bank of Hawaii Vice President Fred Alvarado.

What can these students expect to learn? 

About 50 Bank of Hawaii volunteers will be visiting classrooms at 22 schools across Oahu and this year we've expanded our reach to the Big Island as well as Kauai. We're really excited to have this opportunity to discuss the importance of credit with students. There are three main concepts the students will learn about: (1) how to figure out if you are creditworthy, (2) how to manage your debt responsibly, and (3) how to recognize credit trouble.

How can someone tell if he/she is creditworthy?

There are some basic questions that you can ask yourself when trying to figure out if you are creditworthy:

Have you opened a checking account and a savings account? Demonstrating that you can save money and manage a checking account can improve your standing as a loan candidate. Most credit applications will ask for both types of accounts.

Have you opened a credit account in your name only? It is important to establish and maintain an individual credit history – one that is separate from relatives, friends, and even spouses. 

Have you been at your home and on the job for at least a year? While not critical, most lenders like to see stability in both your residence and employment.

What advice would you give to students on how to manage debt responsibly?

 There are many ways to manage your debt, but here are some key tips:

 

Tips to Manage Debt Responsibly

 

  • Pay your bills on time.
  • Record and track all of your debit transactions.
  • Be aware of all your monthly payments. Include them in your budget.
  • Accumulate only the amount of debt that you can pay off comfortably each month.

 

 

How can someone tell if he/she is on the brink of credit trouble?

If you answer yes to more than one of the following questions, you might want to take a look at your credit: Are you at or over the limit on any of your lines of credit? Do you pay late penalties often? Are you only able to make the minimum payment on your credit cards? Do you use your savings to pay current bills and everyday expenses?

 

Being knowledgeable about credit is the key prevention tool. This is the word that we hope to spread to students at next Thursday's National Get Smart About Credit Day. 

If you answer yes to more than one of the following questions, you might want to take a look at your credit: Are you at or over the limit on any of your lines of credit? Do you pay late penalties often? Are you only able to make the minimum payment on your credit cards? Do you use your savings to pay current bills and everyday expenses?

 

Being knowledgeable about credit is the key prevention tool. This is the word that we hope to spread to students at next Thursday’s National Get Smart About Credit Day.