Credit Score Consultant » Credit Management

25 Amazing Credit, Debt and Savings Statistics

Cole — Tue, 06 Oct 2009 14:27:27 +0000

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.

11. According to a recent Javelin Strategy & Research study, 7.28% of respondents said paying off their credit card balance has become more difficult.

12. 45% of respondents to the Javelin study said their ability to contribute to savings has decreased.

13. 30% to 40% of employers use credit scores as an employment selection device, the U.S. Equal Employment Opportunity Commission reports.

14. According to information gathered by the US Census bureau, there were approximately 164 million credit card holders in 2005. That number is projected to grow to 176 million by 2010.

15. About 43% of American families spend more than they earn each year, MSN Money reports.

16. Of workers 55 years or older, about 50% have less than $50,000 in savings, excluding their homes and pensions, according to the Employee Benefit Research Institute.

17. Recently, personal savings rates have increased, rising from essentially zero last year to about 4.2% in July, according to US government statistics.

18. Personal bankruptcies have doubled in the past decade, according to MSN Money.

19. US Visa cardholders account for $1 trillion in annual volume, according to Visa USA.

20. 88% of respondents to a GfK Roper Survey admitted to immediately shredding or simply throwing out credit card offers received in the mail.

21. 25% of credit reports contain errors that have an impact on credit score, according to Public Interest Research Group.

22. FICO reports that the average consumer has had only 1 credit inquiry on his or her accounts within the past year.

23. Less than 6% percent of consumers had 4 or more inquiries resulting from a search for new credit, according to FICO.

24. According to Visa USA, 33% of consumer purchases in the US are made with a payment card such as a credit card, debit card or prepaid card.

25. Low interest rate is the No. 1 factor when choosing a new credit card, according to 58% of respondents to a GfK Roper Survey.

Now that you’re armed with these helpful credit, debt and savings statistics, are you ready to take the next step? Learn more about your own credit score now – request your free credit report and score today.

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Credit Report 101: Clean Up a Poor Report

Cole — Tue, 15 Sep 2009 13:57:39 +0000

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

• Zero account activity = lower credit score

• Too many credit inquiries = lower credit score

• Credit card accounts only = lower credit score

• Combination of accounts (mortgage, auto loan) = higher credit score

Next, think of a credit report like a report card. Just as you checked your report card each semester, examine your credit report to determine the health of your credit score. Check out our sample credit report “report card” to get a sense of what might be included:

• Identifying Information—Your name, current address, previous addresses, Social Security number and birth date are all listed correctly. And no aliases: Good work!

• Employment—Your past employment information is there, but not your current information: Needs some improvement.

• Credit Information—All the accounts you have with banks, retailers and credit card companies are listed. But you’re overdue on one credit card and have maxed out another: Clean up your act, or register for summer school!

• Public Records—Your public records are clean. There are no state or county court records for bankruptcy, tax liens or monetary judgments. Keep up the good work.

• Credit Inquiries—You’ve applied for 15 different credit cards over the past 6 months. Slow down on those credit inquiries!

You didn’t wait until after graduation to improve your GPA—why would you hesitate to clean up a poor report? Start today by requesting a free credit report and taking advantage of a credit monitoring service.

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Manage Your Credit With 10 Online Tools

Cole — Tue, 25 Aug 2009 11:00:44 +0000

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.

5. CardTrak: The CardTrak calculator can determine how long it will take you to get out of debt by inputting the amount you owe, your interest rates and how much you’re paying down. It also analyzes available credit card offers to determine which has the lowest interest rates and best rewards programs.

6. Bankrate: This site can help you compare mortgage, CD, savings and credit card interest rates, among others. It also helps you calculate how quickly you can get out of debt, determine how much money you will need to retire with and estimate your creditworthiness.

7. CNN Money: This comprehensive website provides calculators for everything from retirement to monthly mortgage payments. The site can determine your net worth, how quickly your savings will grow, how quickly you can get out of debt and how much you will need to save for your child’s college tuition.

8. Practical Money Skills for Life: In addition to financial and debt management articles, this site offers auto loan payment, mortgage payment, retirement and even holiday budgeting calculators. Put some fun into managing your credit with the site’s “Financial Football” interactive game or its “Smart Money Quiz Show.”

9. Mapping Your Future: This free online resource provides career, college, financial aid and money management information, with a strong focus on students and their parents. The site offers tools and calculators for balancing a checkbook, determining a budget, establishing a savings plan and managing student debt.

10. CreditReportsandScores.com: Manage your credit by obtaining detailed reports on your credit history and credit score, as well as information on how your credit score was determined and what it means. Receive immediate alerts of changes reported by any of the three credit reporting agencies.

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