1.
Managing Your Credit
Office of Student Financial Assistance

2.
Managing Your Credit
Establishing and maintaining good credit can provide many benefits to your financial future.

3.
To Do List:
Set up a realistic budget and stick with it. A budget templet can be found at
Open a checking and a saving account if you have not already. Transfer money from checking to savings on a regular basis.
Evaluate your current credit situation.
If you have not done so already, please do the following to ensure a better foundation when managing credit.
A budget is necessary to make sure you have the money to make payments.
A checking/savings account is necessary to hold that money until time to make the payments. Credit is all about the timeliness of payments and the amount of your payments!
If you already have credit cards, evaluate your current interest rate(s) and consider switching to a lower interest rate card. Write down each of your cards and the amount owed. Set a goal to pay down the debt as soon as possible. Decide how you will approach this pay down goal: largest amount to smallest? Smallest to largest? Choose a method that works with your budget and financial goals.

4. Establishing Good Credit
Establishing Good Credit
Know what type of accounts that are identified on your credit report.
Review your credit report annually.
Verify the information on your credit report is accurate.
Pay the minimum payment (or more) ON TIME each month.
Avoid going over your credit limit.

5. Establishing Good Credit, Continued
Establishing Good Credit, Continued
Charge only what you can afford to repay.
Try to make a payment larger than the minimum payment in order to pay off the card faster.
Keep your card in a safe place. Shred your receipts once your monthly statement has been verified.
Keep your address current with your credit card company so your bill get delivered promptly.
Sign up for E-Statements, if available.

6. Your Credit Reputation
Your Credit Reputation
Character – how well you pay back borrowed money.
Capacity – is defined as the financial ability to assume a certain amount of debt.
Capital – consists of the financial assets at your disposal to pay off debt. This may include your car, home, stocks, bonds, mutual funds, etc.
Lenders review your credit background to determine how much credit (if any) to grant you. They are looking for the three C’s. (read slide)

7. Credit Reports and Credit Reporting Agencies
Credit Reports and Credit Reporting Agencies
Visit to obtain a free credit report.
You may also contact the 3 major credit reporting agencies below directly:
Consumers are encouraged to review all 3 reports, as information may vary from one report to another.
There are three national credit reporting agencies: Equifax, Experian, and Transunion. You are entitled to ONE free credit report per year from each agency.

8.
Your Credit Score
Lenders track your credit score and use it to determine if they should:
Offer new credit
Increase or decrease your interest rate
Increase or decrease your credit limit
A good credit score is vital part of your financial reputation. Request your credit score for small fee at: or
Credit scores are based on the information contained in your credit report. This number tells lenders how likely you are to make your credit payment on time. Credit scores can affect future credit, interest rates, required deposits (housing, electricity, phone) and even employment. (read slide)

9. Credit Score Table Range Rating 730-850 Excellent 700 – 729 Great
Credit Score Table
Range
Rating
Excellent
700 – 729
Great
670 – 699
Good
585 – 669
Average
300 – 584
Bad
Industry Specific FICO Score range from

10. Credit Report Verification
Credit Report Verification
Personal
Credit Accounts
Public Records
Negative Information
Inquiries
When reviewing your credit report, make sure the information reported is correct. Check the following:
Personal identifying information – name, Social Security Number, date of birth, current and previous addresses, and employers.
Credit account information – date opened, credit limit or loan amount balances carried, if any, and payment history.
Public record information – bankruptcy, tax and other liens, judgments, (in some states) overdue child support payments, and overdue alimony support payments.
Negative information - stays on your credit report for seven years. Positive information stays indefinitely. Records of inquiries stay on the credit report for six months to two years, depending on the type of inquiry.
You may access any of the credit reporting agencies’ websites to see a sample credit report. Most of these sites have excellent explanations and descriptions of how to interpret the credit report.

11. Correcting Errors on your Credit Report
Correcting Errors on your Credit Report
You have the right to file a “consumer dispute” with the credit reporting agency. They are obligated to verify the accuracy of their reports when notified of disputes.
When you pull your report online, consumer disputes can be filed electronically.
For more information on how to dispute credit report errors, visit

12. Protecting your Identity
Protecting your Identity
Leave important documents at home.
Keep documents in a safe place.
Protect your Social Security number.
Protect your driver’s license.
Protect PINs and computer passwords.

13. Protecting your Identity
Protecting your Identity
Pick up checks from the bank – not from your mailbox.
Use a safe deposit box if necessary to receive important information.
Check your credit report annually.
Report suspected fraudulent activity or stolen card to the appropriate office.
If possible, pick up newly ordered checks at the bank to avoid blank checks in your mailbox if no lock for security.
Check your credit report annually. Fill out a consumer dispute, if necessary.
If you suspect someone is using your driver’s license number, call the Florida Department of Highway Safety and Motor Vehicles (DHSMV) or your state’s equivalent organization. The DHSMV can tell you if another license has been issued in your name. If this is the case, get a new number and ask the DHSMV to investigate the identity theft. The DHSMV can block your information from being released based on verifying identification.
If your Social Security Number was used fraudulently, report the problem to the Social Security Administration Fraud Hotline at Call Social Security to verify the accuracy of your reported earnings and to verify that your identifying information is reported correctly.

14. If your Identity is Stolen – Immediately Contact
If your Identity is Stolen – Immediately Contact
Creditors and Financial Institutions
Law Enforcement
Federal Trade Commission
Department of Motor Vehicles (for driver’s license)
Social Security Administration (for social security card)
Creditors – Notify all creditors and financial institutions in writing and by phone that your name and accounts have been used without your permission. If personal checks were stolen, close all checking accounts. Close all current credit card accounts and request a statement of information about the last five to ten purchases on each credit card account. This will inform you of any fraudulent activity.
Financial Institutions - If your bank accounts have been tampered with, close the accounts as soon as possible. Ask for new ATM cards and password protection when opening new accounts.
Local Law Enforcement – Immediately file a report with your local police. Provide them with as much documentation as possible and make sure all accounts are listed on the report. Also, ensure that you receive a copy of the police report for your records. This report may initiate an investigation with the goal of identifying, arresting, and prosecuting the offender.
Federal Law Enforcement – Report the crime to the Federal Trade Commission (FTC). The FTC collects complaints about identity theft from consumers and businesses, and stores them in a secure online database. This database is called the “Consumer Sentinel” and is available to law enforcement agencies worldwide.
Department of Motor Vehicles – Report identity theft to the DMV and check to see that your driver’s license has not been compromised as well.
Social Security Administration – Report the crime to the SSA so they can monitor your social security number.

15. If your Identity is Stolen
If your Identity is Stolen
Record Keeping – It is important to maintain written chronological record of dates, times, and names of telephone contacts.
After telephone contact has been made, it is crucial to follow up in writing and keep records of all written correspondence.

16.
Tips to Remember
Maintain good credit to help you in your financial future.
Know the difference between good and bad credit in terms of credit scores and credit reporting data.
There are negative consequences to defaulting on any credit account and this will impact your overall credit rating.
Protect all of your confidential and private information. Credit is like an individual’s reputation – it is a precious commodity!
Maintaining good credit will be helpful in future financial transactions, such as securing a lease for a rental property or obtaining a home or car loan.
Knowing the difference between good and bad credit in terms of credit scores and credit reporting data will help you better manage your money in the future.
Acknowledging there are negative consequences to defaulting on any credit account and how this will impact your overall credit rating.
Credit is like an individual’s reputation - it is a precious commodity. Protect all of your confidential and private information.

17. Navigating your Financial Future
Navigating your Financial Future
OSFA offers a variety of tools and resources to help you in your pursuit of higher education.

18.
Contact us
Telephone:
OSFA Outreach:
Pedro “Pete” Hernandez
(850)

19.
Questions?

20. Thank you for attending this presentation.
Thank you for attending this presentation.