Your credit report offers you a complete view of your current and past credit and financial situation. But without a guide, reading your credit report can seem overwhelming and confusing.

Use our easy-to-follow guide to take the frustration out of reading your credit report:

Section 1: Identifying Information
This section contains:

1. Your name

2. Current address and previous addresses

3. Employment information

4. Social Security number

5. Birth date

You may be tempted to read quickly over this section, but take a minute to ensure everything is correct. For example, carefully look for:

• An incorrect house number on your address
• Outdated employer information
• A SS number off by just one or two numbers

Section 2: Account History
Here’s the meat of the credit report. Your account history will include:

1. Creditor name (i.e., credit card company, mortgage lender, bank)

2. Account number

3. Type of account (i.e., real estate, auto, educational, credit card)

4. Date opened

5. Last activity

6. Balance (how much you currently owe)

7. High balance (the most you’ve ever owed on the account)

8. Past due (amount of overdue payments since the most recent reported activity)

9. Terms (amount of monthly payments, for example)

10. Status (i.e., closed, open)

11. Any additional remarks

Take extra time to ensure everything in this section is accurate and up-to-date. Any incorrect information should be disputed with the 3 credit reporting agencies: Experian, Equifax and TransUnion. Any accounts that are open but inactive should be closed.

Section 3: Public Records
Here you will find a list of all public record items from federal, state and local courts, including bankruptcy, tax lien, monetary judgment and civil action judgment records. Information provided will include:

1. Type of public record

2. Status

3. Date filed

4. Reference number

5. Closing date

6. Court

7. Amount

8. Any additional remarks

You should also take care to ensure all of the information here is correct, particularly if a case was dismissed or if you have been cleared of any charges. Again, contact the 3 credit reporting agencies to dispute inaccurate information.

Section 4: Credit Inquiries
This section will highlight all the inquiries that have been made into your credit report. If you’ve applied for a credit card, load or even a new job, those inquiries should be listed here. Keep in mind that inquiries can only be made with your permission. This section will provide:

1. Creditor name

2. Date of inquiry

Keep in mind these points:

• Are there an excessive amount of inquiries on my report? Too many may negatively affect your credit score.
• Are there inquiries that I do not recognize? This could be a sign of identity theft. Take action with the 3 reporting agencies immediately.

Want to simplify the process of reading your credit report even more? Take advantage of a credit monitoring service. You’ll be automatically notified when any changes have been made to your report by any of the 3 reporting agencies.

© Cole for Credit Score Consultant, 2009. | Reading Your Credit Report: An Easy-to-Follow Guide | http://www.creditscoreconsultant.com/188/reading-credit-report/

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The numbers don’t lie. We’ve compiled 25 useful and interesting credit, debt and saving statistics to help you better assess your situation and learn more about your credit score today.

1. On average, consumers have 13 credit obligations on record, including credit cards and installment loans, according to FICO.

2. 50% of all consumers have been 30 or more days late on a payment, according to FICO.

3. 3 out of 10 have been 60 or more days overdue, FICO reports.

4. 1 in 7 consumers uses 80% or more of their credit card limit, FICO reports.

5. 40% of credit card holders carry a balance less than $1,000, according to FICO.

6. 15% carry balances in excess of $10,000, according to FICO.

7. 84% of college students have credit cards, according to Sallie Mae.

8. 50% of college students or more have at least 4 cards, according to Sallie Mae.

9. 75% of college students who have credit cards carry a balance, Sallie Mae reports.

10. The average credit card balance for college students is $3,173, according to Sallie Mae.

11. According to a recent Javelin Strategy & Research study, 7.28% of respondents said paying off their credit card balance has become more difficult.

12. 45% of respondents to the Javelin study said their ability to contribute to savings has decreased.

13. 30% to 40% of employers use credit scores as an employment selection device, the U.S. Equal Employment Opportunity Commission reports.

14. According to information gathered by the US Census bureau, there were approximately 164 million credit card holders in 2005. That number is projected to grow to 176 million by 2010.

15. About 43% of American families spend more than they earn each year, MSN Money reports.

16. Of workers 55 years or older, about 50% have less than $50,000 in savings, excluding their homes and pensions, according to the Employee Benefit Research Institute.

17. Recently, personal savings rates have increased, rising from essentially zero last year to about 4.2% in July, according to US government statistics.

18. Personal bankruptcies have doubled in the past decade, according to MSN Money.

19. US Visa cardholders account for $1 trillion in annual volume, according to Visa USA.

20. 88% of respondents to a GfK Roper Survey admitted to immediately shredding or simply throwing out credit card offers received in the mail.

21. 25% of credit reports contain errors that have an impact on credit score, according to Public Interest Research Group.

22. FICO reports that the average consumer has had only 1 credit inquiry on his or her accounts within the past year.

23. Less than 6% percent of consumers had 4 or more inquiries resulting from a search for new credit, according to FICO.

24. According to Visa USA, 33% of consumer purchases in the US are made with a payment card such as a credit card, debit card or prepaid card.

25. Low interest rate is the No. 1 factor when choosing a new credit card, according to 58% of respondents to a GfK Roper Survey.

Now that you’re armed with these helpful credit, debt and savings statistics, are you ready to take the next step? Learn more about your own credit score now – request your free credit report and score today.

© Cole for Credit Score Consultant, 2009. | 25 Amazing Credit, Debt and Savings Statistics | http://www.creditscoreconsultant.com/181/credit-debt-savings-statistics/

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College students in credit card debt are no doubt a major problem nationally. According to a study by student lender Sallie Mae, more students than ever before have their own cards, and an alarming number carry a large balance. Study findings include:

• 84% of college students have credit cards

• 50% or more have at least four cards

• The average balance is $3,173

• 75% carry a balance

• 60% are surprised at how high their balances are

So just how do your students get entangled in this mess, and how do you avoid finding your college student in credit card debt?

1. They just don’t know any better. As a parent, have you instilled the right financial responsibility values in your children? Teach your kids at an early age the importance of living within your financial means and paying off credit cards in full each month. If you haven’t already done this, it’s not too late. Your college student is learning complicated lessons in chemistry, statistics and computer programming—why not tack on one more lesson in personal finance?

2. The sky is the limit with credit cards. For some college students, the high spending limit on credit cards represents unending buying power. Instead of giving your college student a credit card, give him or her debit or check card linked to his or her own account. That way, the spending limit is more strictly enforced. When nothing is borrowed, there’s no danger of credit trouble. But be sure to first educate your college student on overdraft fees.

3. Card offers abound. College students can’t walk into the student union or attend a sporting event without being inundated with new card offers. On top of that, credit card companies offer everything from pizza coupons to free T-shirts to convince them to apply. But thanks to a new law, that will soon change. Beginning in February, as part of the Credit CARD Act of 2009, students under 21 will not be able to sign up for their own cards.

4. They’re broke. It’s a cliché because it’s true. Bills for textbooks, entertainment, rent, food and utilities can certainly pile up—especially when little to no income is coming in the door. Help your college student set a monthly budget plan that includes all of their spending needs. Discuss how much money you’ll be able to provide each month, and brainstorm ideas for your college student to make some extra cash. Does the school offer paid tutoring opportunities? Could your co-ed take on a part-time job waiting tables on the weekends?

5. They don’t read the fine print. Some students get swept up in enticing introductory offers: 0% interest for 6 months or 0% interest on balance transfers, for example. By failing to read agreements in full, college students can overlook interest rates that skyrocket after a few months or a sudden no-grace period. Teach them to start reading the fine print, and work with them to identify a card that’s right for them in the long term.

© Cole for Credit Score Consultant, 2009. | 5 Ways College Students Get Into Credit Card Debt (And How to Avoid Them) | http://www.creditscoreconsultant.com/174/student-in-credit-card-debt/

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Have you made it a habit to max out credit cards?

Are you relying on payday loans just to survive?

You aren’t alone. But don’t be intimidated or overwhelmed if you need to improve a bad credit report. Instead, think back to your college days (and the time when your unhealthy credit practices may have started).

Approach cleaning up a poor report just as you did your educational career:

Hard work → high grade point average → dream job

Follow that formula to clean up poor credit:

Hard work → high credit score → dream home and car

GPA                                     Credit Score

3.8                                       760

Just as a college GPA is a cumulative measurement of how well you perform in all of your classes, your credit score is a cumulative measurement that can fluctuate and is based on multiple factors:

• Fewer overdue payments = higher credit score

• More loans paid off = higher credit score

• Longer credit history = higher credit score

• Zero account activity = lower credit score

• Too many credit inquiries = lower credit score

• Credit card accounts only = lower credit score

• Combination of accounts (mortgage, auto loan) = higher credit score

Next, think of a credit report like a report card. Just as you checked your report card each semester, examine your credit report to determine the health of your credit score. Check out our sample credit report “report card” to get a sense of what might be included:

• Identifying Information—Your name, current address, previous addresses, Social Security number and birth date are all listed correctly. And no aliases: Good work!

• Employment—Your past employment information is there, but not your current information:  Needs some improvement.

• Credit Information—All the accounts you have with banks, retailers and credit card companies are listed. But you’re overdue on one credit card and have maxed out another: Clean up your act, or register for summer school!

• Public Records—Your public records are clean. There are no state or county court records for bankruptcy, tax liens or monetary judgments. Keep up the good work.

• Credit Inquiries—You’ve applied for 15 different credit cards over the past 6 months. Slow down on those credit inquiries!

You didn’t wait until after graduation to improve your GPA—why would you hesitate to clean up a poor report? Start today by requesting a free credit report and taking advantage of a credit monitoring service.

© Cole for Credit Score Consultant, 2009. | Credit Report 101: Clean Up a Poor Report | http://www.creditscoreconsultant.com/134/clean-up-poor-report-credit-101/

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Sept. 7, 10:00 am: Credit is more important than you might think. It determines the house you can buy and the car you drive. It can even affect the job you may or may not get.

I’m waiting patiently to hear back from a job I recently applied for. The recruiter called a few minutes ago and said they were going to run a criminal and credit check. “Do you have anything I should know about?” he asked with a laugh.

“Hmmm…. No criminal record that I can think of,” I answered teasingly. But a little voice said, “Oh great, I know that my credit is horrible!” A couple of years of credit card debt, student loans and a divorce can really mess up your credit. Not to mention all those library books I forgot to take back. Yes, the public library will take you to collections!

Checking my credit was discrimination! What did a low credit score and late payments have to do with my ability to do my job? Did paying a bill late make me a horrible writer? I had been out of work for several months already, and as my money was running out, I was using credit to pay for groceries. I was getting desperate and needed this job. This credit check was unfair!

I recently pulled my credit score, and it was dismal. I was in the yellow. Not Great. . .not even Good, I was Poor. How right they were. As the weeks passed, my bank account and credit were both testimonials to how poor I actually was.

The company I was applying to was an upcoming software company, and I was hoping to become their next technical editor. So again, how did my credit–or lack thereof–affect my job?

Well, I thought grumbling, it did. As much as I didn’t like to admit it, my poor credit reflected my poor judgment and financial irresponsibility.

I opened my big book of credit card bills and looked through the purchases:

• $200 red leather pumps

• Trip to Mexico in spring

• $4.00 Starbucks–and that’s daily

These were all purchases when I was readily employed and making good money. But did I really need to spend my money like this? And shouldn’t I have used cash instead of credit? That $4.00 latte, with finance charges, late fees and 26% interest rates, probably cost me more like $20.

If I was the hiring manager, wouldn’t I want to hire an individual who was mature and responsible enough to make good choices, could balance their checkbook and know right from wrong? Although, in my defense, those red shoes were so right!

A s a technical editor, I would be managing a small department with a budget, I would have expenses and I would have to make the right decisions for me, my group and my company.  As much as I hated it, my credit score, it did say a lot about me. Maybe some of my financial woes were the economy, and bad stuff out of my control. But there was a lot that I had control over. I hoped that when my credit check came through, they would weigh the good and the bad–and see way past the bad. I guess I would just have to wait it out.

Sept. 11, 1:00 pm: I just got a call back from my recruiter with a message to call him. He said it was important. I hope it’s good news. I need it!

© Cole for Credit Score Consultant, 2009. | The Financial Woes of Mr. and Mrs. Poor Credit | http://www.creditscoreconsultant.com/119/financial-woes-diary/

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In today’s job market, the unemployment rate is high and the pool of talented job candidates is vast. Employers have the luxury of being as choosy as they like. And with employer credit checks less expensive than they once were, companies may choose to select candidates with clean credit, The New York Times reports.

As unfair or harsh as the practice sounds, it’s by and large legal at this point. But lawmakers in several states have proposed legislation to restrict the use of employer credit checks in the job application process.

Until then, follow these 4 steps to ensure a low credit score won’t affect your job eligibility:

1. Know your credit score before the employer credit check. By law, you are allowed a free annual credit report from each of the 3 reporting agencies: Experian, TransUnion and Equifax. Before applying for a job, request your report to determine how healthy or unhealthy your credit actually is.

2. Check your credit report for any errors. If you notice any wrong information, first contact the credit reporting agency in writing to contest it. The agency will then work to either verify the information or delete it from your report. If the information is deleted, a corrected report can be sent to anyone who received a copy during the past 2 years for employment purposes. If the investigation does not end in your favor, you can have a statement of dispute added to your report.

3. Work with a credit counselor to improve poor credit. Credit counseling services can guide you through the process and offer valuable information to help you improve your situation. Some counselors charge for their services, while other nonprofit counselors offer their services for free.

4. Use a credit monitoring service. These services monitor your credit profile on a daily basis and alert you to any changes reported by each of the 3 reporting agencies.

© Cole for Credit Score Consultant, 2009. | With Employer Credit Checks, Poor Credit Can Hinder Your Job Hunt | http://www.creditscoreconsultant.com/103/employer-credit-checks/

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If paying off your credit cards seems like an insurmountable task, you’re not alone.

A recent report from financial research firm Javelin Strategy & Research found that many Americans are having a more difficult time paying off credit cards. And who can blame them, with the economic downturn, mortgage crisis, and high food and fuel costs?  Here are a few results of the study:

• 28% say paying off their credit card balance has become more difficult

• 45% say their ability to contribute to savings has decreased

Paying off Credit Cards
Especially in difficult economic times like these, it’s crucial to develop a plan to pay off credit cards. On the surface, creating a plan seems perfectly simple:  charge less and pay down more. But anyone who’s ever been in debt—or anyone who’s managed their own finances for that matter—knows that sticking to the plan isn’t that easy.

Here are 6 valuable tips to help you develop a plan that you can stick with:

1. Create an online account with your credit card company to pay your bill each month. You’ll save on postage, you’ll gain more control over your account and you won’t have to worry about late payments.

2. Utilize the resources that your credit card company makes available. Set email alerts to notify you when payments are due. Many credit card companies offer this service, which will protect you from late fees and accumulating interest payments. Also take advantage of literary resources, online payment calculators and free same-payment by phone or online.

3. Look for credit cards that offer incentives. Some credit card companies offer cash rewards if you make your payments on time.

4. Pay off the credit card with the highest interest rate first. If you have outstanding balances on multiple credit cards, make the minimum payment on all, but pay as much as possible on the card with the highest interest rate and move on from there.

5. Take advantage of special offers. Look for low or 0% APR offers on balance transfers and purchases. But pay off your debt before the introductory offer ends.

6. Don’t forget the importance of monitoring your credit report and improving your credit score. The higher your credit score is, the lower your interest rates will be.

© Cole for Credit Score Consultant, 2009. | Paying Off Your Credit Cards: 6 Tips to Stick With a Plan | http://www.creditscoreconsultant.com/81/paying-off-credit-cards-tip/

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1. Mint: Manage your credit and finances with this free online tool that syncs bank accounts, credit cards, loans and investments. Mint reports on where your money is going and allows you to set budgets for yourself.

2. ClearCheckbook: This money management tool allows you to balance your checkbook online, view spending reports, automate recurring payments and set budgets. You can update your account online or on your cell phone.

3. SmartyPig: Set your own savings goals and deadlines, and SmartyPig will automatically withdraw payments from your checking account each month. You can also give friends and family access to your goals so they can help you reach them.

4. CalcEnstein: This “ultimate” online calculator determines interest, savings, exchange rates and business finances, among many other tasks. But the calculator is good for more than just your finances: Determine your body mass index, how much fertilizer your lawn needs or your blood alcohol content.

5. CardTrak: The CardTrak calculator can determine how long it will take you to get out of debt by inputting the amount you owe, your interest rates and how much you’re paying down. It also analyzes available credit card offers to determine which has the lowest interest rates and best rewards programs.

6. Bankrate: This site can help you compare mortgage, CD, savings and credit card interest rates, among others. It also helps you calculate how quickly you can get out of debt, determine how much money you will need to retire with and estimate your creditworthiness.

7. CNN Money: This comprehensive website provides calculators for everything from retirement to monthly mortgage payments. The site can determine your net worth, how quickly your savings will grow, how quickly you can get out of debt and how much you will need to save for your child’s college tuition.

8. Practical Money Skills for Life: In addition to financial and debt management articles, this site offers auto loan payment, mortgage payment, retirement and even holiday budgeting calculators. Put some fun into managing your credit with the site’s “Financial Football” interactive game or its “Smart Money Quiz Show.”

9. Mapping Your Future: This free online resource provides career, college, financial aid and money management information, with a strong focus on students and their parents. The site offers tools and calculators for balancing a checkbook, determining a budget, establishing a savings plan and managing student debt.

10. CreditReportsandScores.com: Manage your credit by obtaining detailed reports on your credit history and credit score, as well as information on how your credit score was determined and what it means. Receive immediate alerts of changes reported by any of the three credit reporting agencies.

© Cole for Credit Score Consultant, 2009. | Manage Your Credit With 10 Online Tools | http://www.creditscoreconsultant.com/90/manage-your-credit-10-tools/

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Improve a bad credit report, just like a leaky roof.

What’s the first step to repairing a hole in a roof?

Finding out how big the hole is.

This same logic applies if you find yourself needing to improve a bad credit report. The first step in developing a plan to improve your credit is determining just how bad it has become.

Most consumers who have experienced their credit rating fall did not allow this to happen intentionally.  They simply spent money out of an immediate need, like with a leaky roof, and may not have had the luxury of developing a plan.  But this lack of a planning, for whatever reason, is what has led nearly all consumers who suffer from bad credit to where they are today.

If you are a consumer currently experiencing the effects that bad credit can have on your life, you may wish each day that you could go back and develop a plan that would have kept you out of this mess.  You can’t.  But you can develop a plan that will help you recover and improve your report.

Requesting a free credit report will put you face to face with your past credit mistakes.

This can be frightening.  Facing the unknown usually is.  But it is impossible to eliminate that hole in the roof until you find out just how big the hole has grown.

There are several factors that you will likely see on your credit report that will affect your credit and your recovery for years to come, including:

• Delinquencies: Refers to any payments reported as 30-180 days late. Payments reported as 30 days late will likely affect your report for two years. 60 days and beyond may be with you up to seven years, after the first missed payment.
• Collection accounts: Should one of your delinquent payments go into collections, your credit report will likely be affected for up to seven years.
• Charged-off accounts:  This is when your lender writes off the money you owe them as money they are never going to see.  This will affect you for seven years.

While these factors will affect you for years, they can be overcome if you build a plan that helps you commit to not making the same mistakes in the future.  And the best way to build a plan is to consult professionals or seek the counsel of those who have been there before.

That homeowner repairing the hole in his or her roof would likely never try to patch it on his own – especially if it were his or her first time. Improving your bad credit is just as big, just as important a project.  The better your plan, the more help you receive, the more likely you will be to weather any challenges in the future.

© Cole for Credit Score Consultant, 2009. | Need To Improve A Bad Credit Report? Find Out How Bad It Is | http://www.creditscoreconsultant.com/16/repair-bad-credit/

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Raising your credit score is fundamentally about demonstrating to creditors you are fiscally responsible. If you used the above tool to check your credit score and found the results less than satisfactory, consider acting on the following items to raise it:

Pay all bills on time – Something as simple as paying your bills on time, especially in cases where you previously were late can help begin to inch your score upwards. This is best practices for getting your credit score up, and a good habit to get into.

Credit Card Balances can hurt your credit score – Savvy consumers know the importance of keeping a minimal amount of balance on their credit cards. Credit cards are a privilege, not a right, and treating them with that mindset is a good idea if you’ve been having trouble being responsible. If you have trouble overspending, consider leaving credit cards at home and only bring an amount of cash you are willing to spend with you. This way, you won’t be able to overindulge.

Don’t open more credit cards than you need to – If you’re registering new credit cards every month or even week – stop! Only keep the ones you absolutely need, such as major credit card and a gas card. All those store-specific credit cards can act to ruin your credit score if you forget to pay them.

Resolve past-due accounts and collection activities – Your previous debt follows you, and doing things like resolving old debts can be a quick boost to your credit score.

© admin for Credit Score Consultant, 2009. | Easy Ways To Raise Your Credit Score | http://www.creditscoreconsultant.com/13/raise-credit-score/

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