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Union Plus Credit Webinar

Welcome!. Union Plus Credit Webinar. Introductions. Jon Ross – Union Privilege vice president Union Privilege develops and manages credit education programs for union members Gerri Detweiler - Consumer credit expert

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Union Plus Credit Webinar

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  1. Welcome! Union Plus Credit Webinar

  2. Introductions • Jon Ross– Union Privilege vice president • Union Privilege develops and manages credit education programs for union members 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

  3. Poll: What is your biggest credit concern? • Credit card debt • Mortgage debt • Poor credit score • Auto loan debt • Student loan debt

  4. How to Get and Keep Good Credit • Why Good Credit is So Important • Smart Credit Card Strategies • Steps to Better Credit • Debt Reduction Strategies

  5. 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

  6. Knowledge + Action = Savings If all consumers raised their scores by just 30 points, savings would be $16.4 billion.

  7. 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

  8. Total Savings = $1,480 First Year Alone!

  9. 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

  10. 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.

  11. 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

  12. 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

  13. 3 Steps to Better Credit • Review Your Credit Report and Address Negatives • Build Positives • Monitor and Maintain

  14. 3Steps to Better Credit • Step One: Review Credit Report • and Address Negatives • Understand reporting periods • Dispute inaccuracies • Negotiate • Let time heal the wounds

  15. 3 Steps to Better Credit • Step Two: Build Positives • Positive credit references paid on time • Mix of credit types • Don’t close old accounts • Authorized users beware • Secured credit card

  16. 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

  17. 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

  18. 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!

  19. AccelerateResults • Negotiate with current issuers • Transfer balances to lower rates • Shop for better deals if needed • Add extra $$

  20. 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

  21. 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

  22. Other Options • Consolidate With…? • Personal Loan • Home Equity • Retirement Plan $ • Credit Counseling

  23. You can do it! • Start today! • Create a plan • Watch for traps • Get help if needed

  24. Help from Union Privilege • UnionDebtHelp.com • UnionPlus.org/CreditEducation • UnionPlus.org/SaveMyHome • UnionPlus.org/Budgeting • UnionPlus.org/CreditScore • UnionPlus.org/SecuredCard

  25. Questions and Answers • Visit UnionPlus.org/CreditCounseling • Speak with a credit counselor: 1-877-833-1745

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