union plus credit webinar welcome!. introductions jon ross jon ross – union privilege vice...
TRANSCRIPT
Union Plus Credit WebinarUnion Plus Credit Webinar
Welcome!Welcome!
Introductions
Jon RossJon Ross – Union Privilege vice president
Union Privilege develops and manages credit education programs for union members
Gerri DetweilerGerri 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
Total Savings =
$1,480 First Year Alone!
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 WorkHow Credit Scores Work
FICO Score BasicsFICO 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 Credit3 Steps to Better Credit
1.Review Your Credit Report and Address Negatives
2.Build Positives
3.Monitor and Maintain
33 Steps to Better CreditSteps to Better Credit
Step One: Review Credit Report Step One: Review Credit Report and Address Negativesand Address Negatives
Understand reporting periodsDispute inaccuraciesNegotiateLet time heal the wounds
3 Steps to Better Credit3 Steps to Better Credit
Step Two: Build PositivesStep Two: Build Positives
Positive credit references paid on timeMix of credit typesDon’t close old accountsAuthorized users bewareSecured credit card
3 Steps to Better Credit3 Steps to Better Credit
Step Three: Monitor and MaintainStep 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 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
How to Cut DebtHow to Cut Debt
Build A PlanBuild 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!
AccelerateAccelerate ResultsResults
Negotiate with current issuersTransfer balances to lower ratesShop for better deals if neededAdd extra $$
The Cost of DebtThe 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 = ResultsAction = Results
Negotiate/transfer both rates down to 12%
Add extra $25/monthKeep level payment of $225/monthStop charging
• Total interest drops to $1,427• Paid off in 3 years and 2 months
Other OptionsOther Options
Consolidate With…?Consolidate With…?
Personal Loan Home Equity Retirement Plan $ Credit Counseling
You can do it!You can do it!
Start today! Create a plan Watch for traps Get help if needed
Help from Union PrivilegeHelp 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