1. Welcome!
Union Plus Credit Webinar

2. Jon Ross – Union Privilege vice president
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. Step One: Review Credit Report
3 Steps to Better Credit
Step One: Review Credit Report
and Address Negatives
Understand reporting periods
Dispute inaccuracies
Negotiate
Let time heal the wounds

15. Step Two: Build Positives
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. Step Three: Monitor and Maintain
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. Accelerate Results
Negotiate with current issuers
Transfer balances to lower rates
Shop for better deals if needed
Add extra $$

20. Example: two credit cards 1. $5000, 16%, min. payment $125
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: