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“ Understanding Credit”. Presented by: Sulie Richardson. Learning Goals. Why use credit? Who wants to see report & why Understanding the credit reporting system What’s in your credit report How to dispute inaccurate information What makes up your credit score How to fix bad credit.
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“Understanding Credit” Presented by: Sulie Richardson
Learning Goals • Why use credit? • Who wants to see report & why • Understanding the credit reporting system • What’s in your credit report • How to dispute inaccurate information • What makes up your credit score • How to fix bad credit
Know how much of your spend-able income is safe to spend on credit Live within your means Have an adequate emergency fund Have a written spending plan Track your spending Prerequisites to using credit Pay all bills on time
Credit Reporting System Credit Bureaus Creditor Consumer
Reviewing your credit report • Information is collected from creditors and public records • Disputing inaccurate information • 30 days to investigate and communicate
Other considerations Note: There are no quick fixes to repairing credit… • Identity Theft Victim • Consolidate debts • Reduce unwanted credit card solicitations (optoutprescreen.com or call 888-5-opt-out)
New credit • Amount Owed to creditors • Length of credit history • Payment history • Types of credit currently in use 35% 30% 10% 10% 15% Understanding Your Credit Score
Grow your credit score… Make payments on time Savings secured loan Secured credit card Pay creditors Pay down credit cards and the revolving loans
Expensive Credit Refund anticipation loans Rent-to-own Car title loans Beware of co-signing