Presentation on theme: "Union Plus Credit Webinar Welcome!. Introductions Jon Ross Jon Ross – Union Privilege vice president Union Privilege develops and manages credit education."— Presentation transcript:
Introductions Jon Ross Jon Ross – Union Privilege vice president Union Privilege develops and manages credit education programs for union members Gerri Detweiler 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
Poll: What is your biggest credit concern? Credit card debt Mortgage debt Poor credit score Auto loan debt Student loan debt
How to Get and Keep Good Credit Why Good Credit is So Important Smart Credit Card Strategies Steps to Better Credit Debt Reduction Strategies
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
Knowledge + Action = Savings If all consumers raised their scores by just 30 points, savings would be $16.4 billion.
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
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
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.
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
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
3 Steps to Better Credit 1.Review Your Credit Report and Address Negatives 2.Build Positives 3.Monitor and Maintain
3 Steps to Better Credit Step One: Review Credit Report and Address Negatives Understand reporting periods Dispute inaccuracies Negotiate Let time heal the wounds
3 Steps to Better Credit Step Two: Build Positives Positive credit references paid on time Mix of credit types Dont close old accounts Authorized users beware Secured credit card
3 Steps to Better Credit Step Three: Monitor and Maintain Check your credit report free: AnnualCreditReport.com Consider credit monitoring Set up online bill payment
Poll: How concerned are you about debt? Not concerned – I dont carry much debt Somewhat concerned – Id like to be able to pay it all off Very concerned – it is stressful and I dont know what to do Extremely concerned – Im in deep trouble
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!
Accelerate Results Negotiate with current issuers Transfer balances to lower rates Shop for better deals if needed Add extra $$
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
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
Other Options Consolidate With…? Personal Loan Home Equity Retirement Plan $ Credit Counseling
You can do it! Start today! Create a plan Watch for traps Get help if needed
Help from Union Privilege UnionDebtHelp.com UnionPlus.org/CreditEducation UnionPlus.org/SaveMyHome UnionPlus.org/Budgeting UnionPlus.org/CreditScore UnionPlus.org/SecuredCard
Questions and Answers Visit UnionPlus.org/CreditCounseling Speak with a credit counselor: 1-877-833-1745