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Welcome! Union Plus Credit Webinar.

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Presentation on theme: "Welcome! Union Plus Credit Webinar."— Presentation transcript:

1 Welcome! Union Plus Credit Webinar

2 Jon Ross – Union Privilege vice president
Introductions Jon Ross – Union Privilege vice president Union Privilege develops and manages credit education programs for union members Gerri Detweiler - Consumer credit expert Dedicated consumer advocate ensuring that credit practices better serve, inform and protect consumers 3,000 + interviews including CNN, The New York Times, Dateline, Readers Digest and the Today Show Testified before Congress

3 Poll: What is your biggest credit concern?
Credit card debt Mortgage debt Poor credit score Auto loan debt Student loan debt

4 How to Get and Keep Good Credit
Why Good Credit is So Important Smart Credit Card Strategies Steps to Better Credit Debt Reduction Strategies

5 How Credit Impacts You Approval for personal loans/credit
Interest rates Home and auto insurance premiums Mortgage insurance Daily ATM withdrawal limits Deposits on utilities Jobs Renting a home

6 Knowledge + Action = Savings
If all consumers raised their scores by just 30 points, savings would be $16.4 billion.

7 Raise Your Credit Score
From 680 to 710 $200,000 mortgage: 6.095% to 5.811% Savings: $432 a year $20,000 auto loan: 8.272% to 7.148% Savings: $168 a year Auto insurance: $100 good credit discount Savings: $100 a year $10,000 credit card: 19.8% to 12% Savings: $780

8 Total Savings = $1,480 First Year Alone!

9 Poll: Have any of these happened to you?
Charged a late fee Charged an overlimit fee Rate raised after a late payment Rate raised for no apparent reason None of the above

10 Credit Card Fees Late fees as high as $39.
Penalty interest rates as high as 30%. Often triggered by SINGLE late payment, overlimit or returned check. Universal default - “any time, any reason” - raises credit card rates to as high as 30%. Reduced credit limits = overlimit fees or lower scores.

11 Smart Credit Card Strategies
Read your statements for due date, APR & credit limit Pay cards as soon as you get the bill Set up online payments and alerts Speak up if changes do occur Build good credit for the best deals

12 How Credit Scores Work FICO Score Basics 35% payment history - recent most important 30% debt - high utilization 15% length of credit history 10% new credit 10% types of credit

13 3 Steps to Better Credit Review Your Credit Report and Address Negatives Build Positives Monitor and Maintain

14 Step One: Review Credit Report
3 Steps to Better Credit Step One: Review Credit Report and Address Negatives Understand reporting periods Dispute inaccuracies Negotiate Let time heal the wounds

15 Step Two: Build Positives
3 Steps to Better Credit Step Two: Build Positives Positive credit references paid on time Mix of credit types Don’t close old accounts Authorized users beware Secured credit card

16 Step Three: Monitor and Maintain
3 Steps to Better Credit Step Three: Monitor and Maintain Check your credit report free: Consider credit monitoring Set up online bill payment

17 Poll: How concerned are you about debt?
Not concerned – I don’t carry much debt Somewhat concerned – I’d like to be able to pay it all off Very concerned – it is stressful and I don’t know what to do Extremely concerned – I’m in deep trouble

18 How to Cut Debt Build A Plan Write down all debts/rates/payments
Track spending for one month Pay highest rate unsecured debt first Commit to a fixed repayment amount Keep your eye on the prize!

19 Accelerate Results Negotiate with current issuers Transfer balances to lower rates Shop for better deals if needed Add extra $$

20 Example: two credit cards 1. $5000, 16%, min. payment $125
The Cost of Debt Example: two credit cards 1. $5000, 16%, min. payment $125 2. $2000, 19.8%, min. payment $80 19 years/11 months to pay off $6,682 in interest

21 Action = Results Negotiate/transfer both rates down to 12% Add extra $25/month Keep level payment of $225/month Stop charging Total interest drops to $1,427 Paid off in 3 years and 2 months

22 Other Options Consolidate With…? Personal Loan Home Equity Retirement Plan $ Credit Counseling

23 You can do it! Start today! Create a plan Watch for traps Get help if needed

24 Help from Union Privilege

25 Questions and Answers Visit Speak with a credit counselor:

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