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.

© Cole for Credit Score Consultant, 2009. | 25 Amazing Credit, Debt and Savings Statistics | http://www.creditscoreconsultant.com/181/credit-debt-savings-statistics/

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College students in credit card debt are no doubt a major problem nationally. According to a study by student lender Sallie Mae, more students than ever before have their own cards, and an alarming number carry a large balance. Study findings include:

• 84% of college students have credit cards

• 50% or more have at least four cards

• The average balance is $3,173

• 75% carry a balance

• 60% are surprised at how high their balances are

So just how do your students get entangled in this mess, and how do you avoid finding your college student in credit card debt?

1. They just don’t know any better. As a parent, have you instilled the right financial responsibility values in your children? Teach your kids at an early age the importance of living within your financial means and paying off credit cards in full each month. If you haven’t already done this, it’s not too late. Your college student is learning complicated lessons in chemistry, statistics and computer programming—why not tack on one more lesson in personal finance?

2. The sky is the limit with credit cards. For some college students, the high spending limit on credit cards represents unending buying power. Instead of giving your college student a credit card, give him or her debit or check card linked to his or her own account. That way, the spending limit is more strictly enforced. When nothing is borrowed, there’s no danger of credit trouble. But be sure to first educate your college student on overdraft fees.

3. Card offers abound. College students can’t walk into the student union or attend a sporting event without being inundated with new card offers. On top of that, credit card companies offer everything from pizza coupons to free T-shirts to convince them to apply. But thanks to a new law, that will soon change. Beginning in February, as part of the Credit CARD Act of 2009, students under 21 will not be able to sign up for their own cards.

4. They’re broke. It’s a cliché because it’s true. Bills for textbooks, entertainment, rent, food and utilities can certainly pile up—especially when little to no income is coming in the door. Help your college student set a monthly budget plan that includes all of their spending needs. Discuss how much money you’ll be able to provide each month, and brainstorm ideas for your college student to make some extra cash. Does the school offer paid tutoring opportunities? Could your co-ed take on a part-time job waiting tables on the weekends?

5. They don’t read the fine print. Some students get swept up in enticing introductory offers: 0% interest for 6 months or 0% interest on balance transfers, for example. By failing to read agreements in full, college students can overlook interest rates that skyrocket after a few months or a sudden no-grace period. Teach them to start reading the fine print, and work with them to identify a card that’s right for them in the long term.

© Cole for Credit Score Consultant, 2009. | 5 Ways College Students Get Into Credit Card Debt (And How to Avoid Them) | http://www.creditscoreconsultant.com/174/student-in-credit-card-debt/

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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.

© Cole for Credit Score Consultant, 2009. | Credit Report 101: Clean Up a Poor Report | http://www.creditscoreconsultant.com/134/clean-up-poor-report-credit-101/

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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!

Checking my credit was discrimination! What did a low credit score and late payments have to do with my ability to do my job? Did paying a bill late make me a horrible writer? I had been out of work for several months already, and as my money was running out, I was using credit to pay for groceries. I was getting desperate and needed this job. This credit check was unfair!

I recently pulled my credit score, and it was dismal. I was in the yellow. Not Great. . .not even Good, I was Poor. How right they were. As the weeks passed, my bank account and credit were both testimonials to how poor I actually was.

The company I was applying to was an upcoming software company, and I was hoping to become their next technical editor. So again, how did my credit–or lack thereof–affect my job?

Well, I thought grumbling, it did. As much as I didn’t like to admit it, my poor credit reflected my poor judgment and financial irresponsibility.

I opened my big book of credit card bills and looked through the purchases:

• $200 red leather pumps

• Trip to Mexico in spring

• $4.00 Starbucks–and that’s daily

These were all purchases when I was readily employed and making good money. But did I really need to spend my money like this? And shouldn’t I have used cash instead of credit? That $4.00 latte, with finance charges, late fees and 26% interest rates, probably cost me more like $20.

If I was the hiring manager, wouldn’t I want to hire an individual who was mature and responsible enough to make good choices, could balance their checkbook and know right from wrong? Although, in my defense, those red shoes were so right!

A s a technical editor, I would be managing a small department with a budget, I would have expenses and I would have to make the right decisions for me, my group and my company.  As much as I hated it, my credit score, it did say a lot about me. Maybe some of my financial woes were the economy, and bad stuff out of my control. But there was a lot that I had control over. I hoped that when my credit check came through, they would weigh the good and the bad–and see way past the bad. I guess I would just have to wait it out.

Sept. 11, 1:00 pm: I just got a call back from my recruiter with a message to call him. He said it was important. I hope it’s good news. I need it!

© Cole for Credit Score Consultant, 2009. | The Financial Woes of Mr. and Mrs. Poor Credit | http://www.creditscoreconsultant.com/119/financial-woes-diary/

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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:

1. Create an online account with your credit card company to pay your bill each month. You’ll save on postage, you’ll gain more control over your account and you won’t have to worry about late payments.

2. Utilize the resources that your credit card company makes available. Set email alerts to notify you when payments are due. Many credit card companies offer this service, which will protect you from late fees and accumulating interest payments. Also take advantage of literary resources, online payment calculators and free same-payment by phone or online.

3. Look for credit cards that offer incentives. Some credit card companies offer cash rewards if you make your payments on time.

4. Pay off the credit card with the highest interest rate first. If you have outstanding balances on multiple credit cards, make the minimum payment on all, but pay as much as possible on the card with the highest interest rate and move on from there.

5. Take advantage of special offers. Look for low or 0% APR offers on balance transfers and purchases. But pay off your debt before the introductory offer ends.

6. Don’t forget the importance of monitoring your credit report and improving your credit score. The higher your credit score is, the lower your interest rates will be.

© Cole for Credit Score Consultant, 2009. | Paying Off Your Credit Cards: 6 Tips to Stick With a Plan | http://www.creditscoreconsultant.com/81/paying-off-credit-cards-tip/

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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.

Requesting a free credit report will put you face to face with your past credit mistakes.

This can be frightening.  Facing the unknown usually is.  But it is impossible to eliminate that hole in the roof until you find out just how big the hole has grown.

There are several factors that you will likely see on your credit report that will affect your credit and your recovery for years to come, including:

• Delinquencies: Refers to any payments reported as 30-180 days late. Payments reported as 30 days late will likely affect your report for two years. 60 days and beyond may be with you up to seven years, after the first missed payment.
• Collection accounts: Should one of your delinquent payments go into collections, your credit report will likely be affected for up to seven years.
• Charged-off accounts:  This is when your lender writes off the money you owe them as money they are never going to see.  This will affect you for seven years.

While these factors will affect you for years, they can be overcome if you build a plan that helps you commit to not making the same mistakes in the future.  And the best way to build a plan is to consult professionals or seek the counsel of those who have been there before.

That homeowner repairing the hole in his or her roof would likely never try to patch it on his own – especially if it were his or her first time. Improving your bad credit is just as big, just as important a project.  The better your plan, the more help you receive, the more likely you will be to weather any challenges in the future.

© Cole for Credit Score Consultant, 2009. | Need To Improve A Bad Credit Report? Find Out How Bad It Is | http://www.creditscoreconsultant.com/16/repair-bad-credit/

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Bad Credit can hurt Employment Opportunities – According to the U.S. Equal Employment Opportunity Commission, 30 to 40 percent of employers use credit score as an employment selection device. In other words, bad credit could be a stopping point from landing that new job, especially in a recession, where employers are especially careful to hire responsible workers.

Buying a home is difficult for people with Bad Credit – Many young people don’t realize the importance of good credit to get the proper loans to buy a home. According to Consumers Union, the non-profit publisher of Consumer Reports: “A borrower with a credit score of 660 or greater is considered to be of less risk.” If you are considered high risk, getting something like a home loan may be next to impossible.

Renting an apartment is difficult with a low Credit Score – When renting an apartment, a credit check is standard for companies to learn about the fiscal responsibility of new tenants. Poor credit may cost you that nice new apartment and force you to live in less-than-perfect settings.

Higher Insurance rates for home, life and auto for people with Bad Credit – Did you know many insurance companies charge higher premiums for those with less than perfect credit? Insurance companies define an “insurance score” based on a combination of your credit score and information from your previous insurance carrier. Basically, those with bad credit not only have to pay more to drive their new car off the lot; they have to pay more to insure it too.

These are just a few examples of how bad credit can follows you everywhere. The ideal situation is not to get into credit problems to begin with, but if you do find yourself in a bad situation, a credit score consultant can help you make sense of the problem and help you find your way out of debt.

© admin for Credit Score Consultant, 2009. | Bad Credit Can Follow You in Unexpected Places | http://www.creditscoreconsultant.com/10/bad-credit/

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