Building and Keeping Good Credit Andrea Misiano Consumer Counseling Northwest.
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Transcript of Building and Keeping Good Credit Andrea Misiano Consumer Counseling Northwest.
Building and Keeping Good Credit
Andrea Misiano
Consumer Counseling Northwest
Where do you stand right now?
• How do you know what needs fixing if you don’t know what’s broken.
• Free Credit reports– How and when to pull– How to read them– How to dispute something
Credit Reports• National Credit Reporting Agencies Trans Union Corp
www.transunion.com National Disclosure Center2 Baldwin PlaceP.O. Box 1000Chester PA 19022 To order Report: 1-800-888-4213Report Fraud: 1-800-680-7289 Experianwww.experian.com Profile Maintenance701 Experian ParkwayPO Box 9588 Allen TX, 75013 To order Report: 1-888-397-3742Report Fraud: 1-888-397-3742 Equifaxwww.equifax.com Credit Information ServicesPO Box 740256Atlanta, GA 30574 To order Report: 1-800-685-1111To Report Fraud: 1-800-525-6285Contact Number: 1-866-238-8067 Annual Credit Report
Other great resources• www.annualcreditreport.com
Annual Credit Report Request ServicePO Box 105281Atlanta, GA 30348-5281 To order Report: 1-877-322-8228
• FEDERAL TRADE COMMISSIONID THEFT HOTLINEwww.consumer.gov/idtheft 1-877-438-4338
IDENTITY THEFT RESOURCE CENTEREmail: [email protected] www.idtheftcenter.org
• Send Mail to the helpdesk with questions or concerns about this website.
The Financial Fruit Basket
• Apples – Unsecured credit. Credit cards, lines of credit, signature loans. You got this credit because you have an honest face.
• Oranges- Secured credit. House, auto and student loans. If you don’t pay, the item it was secured by will be taken back.
Clean your plate before you go get more fruit
• Settlements
• Debt management plans (DMP)
• Bankruptcy
• Repayment plans
• Garnishments
• 7 year golden rule
How to establish or re-establish good credit
• Ask local companies for credit– Credit Unions– Les Schwab
• Find a co-signer– “Hey Mom, you look great today, let’s talk”
• Get a secured credit card– It’s a pre-paid credit card– Use responsibly for a year or two/equity
But how do I rent with bad credit?
1st figure out what you can afford……31% of your income.
2nd Save up 4 times that amount, then start looking.
3rd MONEY TALKS!! Offer to pay 2-3 months upfront. Pay extra for pets.
4th Co-signer5th Stability – letter from boss saying how
long you’ve worked there.
Budgeting is not a four-letter word
• Figure out what your weak areas are
• Put it in Black and White
• Practice for a few months to see what works for you and your style
• Track it
• If it’s too rigid, you will resent it, and it wont work
Add each area up, divide that number by your monthly net (take home) income.
• 35% - Housing (rent, mortgage, utilities, insurance, taxes, dues)
• 20% - Auto (car/truck payment, insurance, maintenance, tabs, gas, parking)
• 20% - Other (food, clothes, pets, haircuts, entertainment, etc)
• 15% - Debt (credit card debt)• 10% - Savings (401k, 403b, under the
mattress)
The American Dream?
• House and white picket fence?
• Debt up to your eyeballs?
• Keeping up with your buddies?
• “I deserve it, I work hard all week”
• “Hey, you can’t take it with you”
• Work hard, spend hard?
• Redefine YOURS!
