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Consumer Credit Help
Monitoring your credit by reading your credit report is the No. 1 step to improving your credit score.
Your credit report offers you a complete view of your current and past credit and financial situation. But without a guide, reading your credit report can seem overwhelming and confusing.
Use our easy-to-follow guide to take the frustration out of reading your credit report:
Section 1: Identifying Information
This section contains:
1. Your name
2. Current address and previous addresses
3. Employment information
4. Social Security number
5. Birth date
You may be tempted to read quickly over this section, but take a minute to ensure everything is correct. For example, carefully look for:
- An incorrect house number on your address
- Outdated employer information
- A SS number off by just one or two numbers
Section 2: Account History
Here’s the meat of the credit report. Your account history will include:
1. Creditor name (i.e., credit card company, mortgage lender, bank)
2. Account number
3. Type of account (i.e., real estate, auto, educational, credit card)
4. Date opened
5. Last activity
6. Balance (how much you currently owe)
Curious about how your credit and financial state compares with the rest of the country?
The numbers don’t lie. We’ve compiled 25 useful and interesting credit, debt and saving statistics to help you better assess your situation and learn more about your credit score today.
1. On average, consumers have 13 credit obligations on record, including credit cards and installment loans, according to FICO.
2. 50% of all consumers have been 30 or more days late on a payment, according to FICO.
3. 3 out of 10 have been 60 or more days overdue, FICO reports.
4. 1 in 7 consumers uses 80% or more of their credit card limit, FICO reports.
5. 40% of credit card holders carry a balance less than $1,000, according to FICO.
6. 15% carry balances in excess of $10,000, according to FICO.
7. 84% of college students have credit cards, according to Sallie Mae.
8. 50% of college students or more have at least 4 cards, according to Sallie Mae.
9. 75% of college students who have credit cards carry a balance, Sallie Mae reports.
10. The average credit card balance for college students is $3,173, according to Sallie Mae.
Do you pay your bills late and submit the minimum payment or less on credit card balances?
Have you made it a habit to max out credit cards?
Are you relying on payday loans just to survive?
You aren’t alone. But don’t be intimidated or overwhelmed if you need to improve a bad credit report. Instead, think back to your college days (and the time when your unhealthy credit practices may have started).
Approach cleaning up a poor report just as you did your educational career:
Hard work → high grade point average → dream job
Follow that formula to clean up poor credit:
Hard work → high credit score → dream home and car
GPA Credit Score
3.8 760
Just as a college GPA is a cumulative measurement of how well you perform in all of your classes, your credit score is a cumulative measurement that can fluctuate and is based on multiple factors:
• Fewer overdue payments = higher credit score
• More loans paid off = higher credit score
• Longer credit history = higher credit score
Mr. and Mrs. Poor Credit are no different from the many Americans with serious financial woes. Outstanding loans, credit card debt and a job loss combined to put them in an undesirable financial situation. Follow the journey of Mr. and Mrs. Poor Credit in their diary.
Sept. 7, 10:00 am: Credit is more important than you might think. It determines the house you can buy and the car you drive. It can even affect the job you may or may not get.
I’m waiting patiently to hear back from a job I recently applied for. The recruiter called a few minutes ago and said they were going to run a criminal and credit check. “Do you have anything I should know about?” he asked with a laugh.
“Hmmm…. No criminal record that I can think of,” I answered teasingly. But a little voice said, “Oh great, I know that my credit is horrible!” A couple of years of credit card debt, student loans and a divorce can really mess up your credit. Not to mention all those library books I forgot to take back. Yes, the public library will take you to collections!
You aren’t likely to see “good credit” listed as a required skill for many job postings. But thanks to a growing number of companies conducting employer credit checks, many job seekers are realizing poor credit can cost them employment.
In today’s job market, the unemployment rate is high and the pool of talented job candidates is vast. Employers have the luxury of being as choosy as they like. And with employer credit checks less expensive than they once were, companies may choose to select candidates with clean credit, The New York Times reports.
As unfair or harsh as the practice sounds, it’s by and large legal at this point. But lawmakers in several states have proposed legislation to restrict the use of employer credit checks in the job application process.
Until then, follow these 4 steps to ensure a low credit score won’t affect your job eligibility:
1. Know your credit score before the employer credit check. By law, you are allowed a free annual credit report from each of the 3 reporting agencies: Experian, TransUnion and Equifax. Before applying for a job, request your report to determine how healthy or unhealthy your credit actually is.
It’s the end of the month, and you know what that means. Any day now, your postman is going to show up at your doorstep with the dreaded credit card bill.
If paying off your credit cards seems like an insurmountable task, you’re not alone.
A recent report from financial research firm Javelin Strategy & Research found that many Americans are having a more difficult time paying off credit cards. And who can blame them, with the economic downturn, mortgage crisis, and high food and fuel costs? Here are a few results of the study:
• 28% say paying off their credit card balance has become more difficult
• 45% say their ability to contribute to savings has decreased
Paying off Credit Cards
Especially in difficult economic times like these, it’s crucial to develop a plan to pay off credit cards. On the surface, creating a plan seems perfectly simple: charge less and pay down more. But anyone who’s ever been in debt—or anyone who’s managed their own finances for that matter—knows that sticking to the plan isn’t that easy.
Here are 6 valuable tips to help you develop a plan that you can stick with:
Managing your credit and personal finances can be an exhausting task to take on all alone. Regardless of whether you’re in debt or in the clear—or whether you’re a financial whiz kid or not at all financially minded—online tools can help you successfully manage your credit.
1. Mint: Manage your credit and finances with this free online tool that syncs bank accounts, credit cards, loans and investments. Mint reports on where your money is going and allows you to set budgets for yourself.
2. ClearCheckbook: This money management tool allows you to balance your checkbook online, view spending reports, automate recurring payments and set budgets. You can update your account online or on your cell phone.
3. SmartyPig: Set your own savings goals and deadlines, and SmartyPig will automatically withdraw payments from your checking account each month. You can also give friends and family access to your goals so they can help you reach them.
4. CalcEnstein: This “ultimate” online calculator determines interest, savings, exchange rates and business finances, among many other tasks. But the calculator is good for more than just your finances: Determine your body mass index, how much fertilizer your lawn needs or your blood alcohol content.
Improve a bad credit report, just like a leaky roof.
What’s the first step to repairing a hole in a roof?
Finding out how big the hole is.
This same logic applies if you find yourself needing to improve a bad credit report. The first step in developing a plan to improve your credit is determining just how bad it has become.
Most consumers who have experienced their credit rating fall did not allow this to happen intentionally. They simply spent money out of an immediate need, like with a leaky roof, and may not have had the luxury of developing a plan. But this lack of a planning, for whatever reason, is what has led nearly all consumers who suffer from bad credit to where they are today.
If you are a consumer currently experiencing the effects that bad credit can have on your life, you may wish each day that you could go back and develop a plan that would have kept you out of this mess. You can’t. But you can develop a plan that will help you recover and improve your report.