Office of Student Financial Assistance

Managing Your Credit

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Managing Your Credit

Establishing and maintaining good credit can provide many benefits to your financial future.

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To Do List: Set up realistic budget and stick with it. Budget templet can be found at

www.NavingatingYourFuture.org

Open a checking and a saving account if you have not already. Transfer money from check to savings on regular basis.

Evaluate your current credit situation.

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Establishing Good Credit Know what type of accounts show 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. Cancel any credit cards you are not using.

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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.

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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 if your character and capacity to not prove sufficient to pay off debt. This may be your car, home, stocks, bonds, mutual funds, etc.

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Credit Reports and Credit Reporting Agencies

Visit www.AnnualCreditReport.com to obtain a free credit report.

You may also contact the 3 major credit reporting agencies below directly: www.Equifax.com 1-800-685-1111 www.Experian.com 1-888-397-3742 www.Transunion.com 1-800-888-4213

Consumers are encouraged to review all 3 reports, as information may vary from one report to another.

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Your Credit ScoreLenders 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: www.AnnualCreditReport.com or www.MyFico.com

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Credit Score TableRange Rating

730-850 Excellent

700 – 729 Great

670 – 699 Good

585 – 669 Average

300 – 584 Bad

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Credit Report Verification

Personal Credit Accounts Public Records Negative Information Inquiries

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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 www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm

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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.

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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 appropriate office.

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If your Identity is Stolen –Immediately Contact

Creditors and Financial Institutions Law Enforcement Federal Trade Commission DMV (for driver’s license) SSA (for social security card)

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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.

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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 how 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!

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Navigating your Financial Future

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

www.NavigatingYourFuture.org

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Contact us E-mail: osfa@fldoe.org Telephone: 1-888-827-2004 OSFA Outreach:

Representative Name Representative Number Representative E-mail

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Questions?

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Thank you for attending this presentation.

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