Employers, creditors, insurance companies, governmen

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Financial Planning for Women

• Christine Ballard, Jessica Okey
• Family Life Center Housing and Financial
  Counseling Center

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Family Life Center
Housing Financial Counseling Center
493 N. 700 E. Logan At the bottom of Old Main
Hill 435-797-7224
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Power Pay

• www.powerpay.org
• Stop borrowing or charging until debts are paid
  off
• Make power payments. As one debt is paid off,
  move that payment to another debt rather than
  spending it on something else.
• Saves money in interest and pays debts faster.

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CREDIT HISTORIES
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• What are the three major credit bureaus?
• TransUnion, Equifax, Experian
• Where can you get your free credit report each
  year?
• www.annualcreditreport.com
• Who can look at your credit report?
• Employers, creditors, insurance companies,
  government agencies, landlords, YOU.

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What is a credit history?

• Definition
• A continuing record of a borrowers debt
  commitments and how well they have been honored.

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How do you build a credit history?

• Time and good behavior
• Start with a low limit credit card
• Small loan
• Pay on time
• Use less than 30 of your credit limit. (10
  recommended)
• Pay off student loans
• You dont have to carry over a balance, but you
  do need to use it. Rod Griffin, Experian

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Other ways if you cant get credit

• Try a co-signer
• Try a secured credit card make sure they report
  to a credit bureau
• Document proof of paying rent, utilities,
  insurance, etc. as an alternative form of credit

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Fair and Accurate Credit Transactions Act 2003

• Gives every consumer the right to their credit
  report free of charge every year.
• Creates a national system of fraud detection.

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Annual Credit Report

• The central site to request a free credit report
  once per year per credit bureau including
  Experian, TransUnion, and Equifax
• www.annualcreditreport.com

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Three Major Credit Bureaus

• EXPERIAN
• www.experian.com
• 888-EXPERIAN (397-3742)
• EQUIFAX
• www.equifax.com
• 800-685-1111
• TRANS UNION
• www.transunion.com
• 800-888-4213

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Who Can Look at Your Credit Report?

• Creditors new and current
• Employers prospective employers
• Insurance Companies
• Government Agencies
• Anyone else with a legitimate business reason
  (ie. landlords)
• You

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What is in a Credit Report?

• Identifying information
• Credit information
• Public record information
• Inquiries

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What you need to look at

• Potentially negative items zero is good
• Open accounts close any you arent using
• Status of accounts open/never late is good. May
  show closed, past due, maxed out limit etc.

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Likelihood of Errors

• 79 of all individual credit files contain
  mistakes (typos, incorrect dates, data entry
  errors)
• 25 contain serious mistakes that may cause
  credit denial

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Find wrong information?

• Contact credit bureau
• It will come off if its not yours
• Is it your mistake?
• Spouse could have taken on debt
• Company name is different than you recognize

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Find Wrong Information?

• Can write 100 word explanation that goes out with
  credit report.
• Example Business went bankrupt
• Information falls off after 7 years, 10 years for
  bankruptcy

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Top Reasons for Bad Credit

• Job loss
• Separation or divorce
• Previous bankruptcy
• Maxed out cards
• Illness

• Tax liens
• Bounced checks
• Victim of crime or fraud
• Other

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Top Reasons for Credit File Problems

• Late or missed payments
• Delinquent items now paid not removed
• Bankruptcy
• Collections
• Family members with similar names

• All cards or leases are not listed
• Incorrect information on file
• Too many credit inquiries
• Victim of Fraud

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Credit Score

• G.P.A is for report card
• FICOFair Isaac Company
• Scores range from 300-900
• Average is 678
• Most scores are in the 600s-700s

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FICO Score

• Score is based on
• Payment history (35)
• Outstanding loan balances (30)
• Length of credit history (15)
• Inquiries (10)
• Types of credit (10)

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Warning Signs of identity Theft

• Not receiving credit card or bank statements
• Denied credit for no apparent reason
• Getting bills from companies you dont recognize
• Credit collection agencies collecting on debts
  that dont belong to you

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What to do if you are a victim

• Place a fraud alert on your credit report
• Close accounts that you know or believe someone
  has tampered with or opened fraudulently
• File a report with local police
• File a complaint with FTC

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Be Aware of Scams

• Debt relief
• Relief may come from filing for bankruptcy
• This is considered a last resort, stays on credit
  report for 10 years!
• Credit repair scams
• Claims to repair your credit are just not true.
• Only time, effort and a plan to repay your debt
  will improve your credit report.

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Have you learned anything?

• Q How do you dispute wrong information on your
  credit report?
• A Contact Credit Bureau. They will research this
  and if its not yours, they have to take it off.
• Q What is the estimated percentage of credit
  reports that have wrong information on them?
• A 79. 29 of these errors can result in a
  denial in credit.

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Have You Learned Anything?

• Q What is one thing you can do yourself to
  increase your credit score?
• A Pay bills on time, correct errors, give it
  time. Lenders want to see at least 2 years of
  good history.

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Upcoming FPW programs

• August 13 Property Insurance
• Local insurance agent Jane Larsen will discuss
  home and auto insurance
• September 10
• Late Savers Retirement Guidebook