Financial Planning for Women

1. Financial Planning for Women • Christine Ballard, Jessica Okey • Family Life Center Housing and Financial Counseling Center

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

4. 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.

6. CREDIT HISTORIES

7. 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.

8. What is a credit history? Definition: A continuing record of a borrower’s debt commitments and how well they have been honored.

9. 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 don’t have to carry over a balance, but you do need to use it.” –Rod Griffin, Experian

10. Other ways if you can’t 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

11. 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.

12. 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

13. 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

14. 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

15. What is in a Credit Report? Identifying information Credit information Public record information Inquiries

16. What you need to look at Potentially negative items: zero is good Open accounts: close any you aren’t using Status of accounts: open/never late is good. May show closed, past due, maxed out limit etc.

21. 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

22. Find wrong information? Contact credit bureau It will come off if it’s not yours Is it your mistake? Spouse could have taken on debt Company name is different than you recognize

23. 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

24. 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

25. 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

26. Credit Score G.P.A is for report card… FICO=Fair Isaac Company Scores range from 300-900 Average is 678 Most scores are in the 600s-700s

28. FICO Score Score is based on: Payment history (35%) Outstanding loan balances (30%) Length of credit history (15%) Inquiries (10%) Types of credit (10%)

29. Warning Signs of identity Theft • Not receiving credit card or bank statements • Denied credit for no apparent reason • Getting bills from companies you don’t recognize • Credit collection agencies collecting on debts that don’t belong to you

30. 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

31. 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.

32. 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 it’s 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.

33. 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.

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