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• Outdated employer information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)

7. High balance (the most you’ve ever owed on the account)

8. Past due (amount of overdue payments since the most recent reported activity)

9. Terms (amount of monthly payments, for example)

10. Status (i.e., closed, open)

11. Any additional remarks

Take extra time to ensure everything in this section is accurate and up-to-date. Any incorrect information should be disputed with the 3 credit reporting agencies: Experian, Equifax and TransUnion. Any accounts that are open but inactive should be closed.

Section 3: Public Records
Here you will find a list of all public record items from federal, state and local courts, including bankruptcy, tax lien, monetary judgment and civil action judgment records. Information provided will include:

1. Type of public record

2. Status

3. Date filed

4. Reference number

5. Closing date

6. Court

7. Amount

8. Any additional remarks

You should also take care to ensure all of the information here is correct, particularly if a case was dismissed or if you have been cleared of any charges. Again, contact the 3 credit reporting agencies to dispute inaccurate information.

Section 4: Credit Inquiries
This section will highlight all the inquiries that have been made into your credit report. If you’ve applied for a credit card, load or even a new job, those inquiries should be listed here. Keep in mind that inquiries can only be made with your permission. This section will provide:

1. Creditor name

2. Date of inquiry

Keep in mind these points:

• Are there an excessive amount of inquiries on my report? Too many may negatively affect your credit score.
• Are there inquiries that I do not recognize? This could be a sign of identity theft. Take action with the 3 reporting agencies immediately.

Want to simplify the process of reading your credit report even more? Take advantage of a credit monitoring service. You’ll be automatically notified when any changes have been made to your report by any of the 3 reporting agencies.

© Cole for Credit Score Consultant, 2009. | Reading Your Credit Report: An Easy-to-Follow Guide | http://www.creditscoreconsultant.com/188/reading-credit-report/

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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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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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