Financial Planning for
Women
 Christine Ballard, Jessica Okey
 Family Life Center Housing and Financial
Counseling Center
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Family Life Center
Housing & Financial
Counseling Center
493 N. 700 E. Logan
At the bottom of Old Main Hill
435-797-7224
Financial Management
• Budget Planning
• Debt Management
• Credit Use
• Life Stage Responsibilities
• Bankruptcy Intervention
Power Pay
 www.powerpay.org
 Stop borrowing or charging until debts are
paid off
 Make power payments. As one debt is paid
off, move that payment to another debt
rather than spending it on something else.
 Saves money in interest and pays debts
faster.
Housing Counseling
• Home Purchase
• Responsibilities of Home Ownership
• Mortgage Default
• Reverse Mortgage
CREDIT HISTORIES
 What are the three major credit bureaus?
 TransUnion, Equifax, Experian
 Where can you get your free credit report
each year?
 www.annualcreditreport.com
 Who can look at your credit report?
 Employers, creditors, insurance companies,
government agencies, landlords, YOU.
What is a credit history?
 Definition:
A continuing record
of a borrower’s debt
commitments and
how well they have
been honored.
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How do you build a credit history?
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Time and good behavior
Start with a low limit credit card
Small loan
Pay on time
Use less than 30% of your credit limit. (10%
recommended)
 Pay off student loans
 “You don’t have to carry over a balance, but
you do need to use it.” –Rod Griffin, Experian
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Other ways if you can’t get
credit
 Try a co-signer
 Try a secured credit card – make sure
they report to a credit bureau
 Document proof of paying rent, utilities,
insurance, etc. as an alternative form of
credit
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Fair and Accurate Credit
Transactions Act 2003
 Gives every consumer the right to their
credit report free of charge every year.
 Creates a national system of fraud
detection.
Annual Credit Report
 The central site to request a free credit
report once per year per credit bureau
including Experian, TransUnion, and
Equifax:
 www.annualcreditreport.com
Three Major Credit
Bureaus
EXPERIAN
www.experian.com
888-EXPERIAN (397-3742)
EQUIFAX
www.equifax.com
800-685-1111
TRANS UNION
www.transunion.com
800-888-4213
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Who Can Look at Your Credit
Report?
Creditors – new and current
Employers & prospective employers
Insurance Companies
Government Agencies
Anyone else with a legitimate business
reason (ie. landlords)
6. You
1.
2.
3.
4.
5.
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What is in a Credit Report?
1. Identifying information
2. Credit information
3. Public record information
4. Inquiries
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What you need to look at
 Potentially negative items: zero is good
 Open accounts: close any you aren’t
using
 Status of accounts: open/never late is
good. May show closed, past due, maxed
out limit etc.
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Likelihood of Errors
 79% of all individual credit files contain
mistakes (typos, incorrect dates, data
entry errors)
 25% contain serious mistakes that may
cause credit denial
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Find wrong information?
 Contact credit bureau
 It will come off if it’s not yours
 Is it your mistake?
 Spouse could have taken on debt
 Company name is different than you
recognize
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Find Wrong Information?
 Can write 100 word explanation that goes
out with credit report.
Example: Business went bankrupt
 Information falls off after 7 years, 10
years for bankruptcy
Top Reasons for Bad
Credit
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Job loss
Separation or divorce
Previous bankruptcy
Maxed out cards
Illness
 Tax liens
 Bounced checks
 Victim of crime or
fraud
 Other
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Top Reasons for Credit
File Problems
 Late or missed
payments
 Delinquent items
now paid not
removed
 Bankruptcy
 Collections
 Family members with
similar names
 All cards or leases
are not listed
 Incorrect information
on file
 Too many credit
inquiries
 Victim of Fraud
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Credit Score
 G.P.A is for report card…
 FICO=Fair Isaac Company
 Scores range from 300-900
 Average is 678
 Most scores are in the 600s-700s
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FICO Score
 Score is based on:
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Payment history (35%)
Outstanding loan balances (30%)
Length of credit history (15%)
Inquiries (10%)
Types of credit (10%)
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Warning Signs of identity
Theft
 Not receiving credit card or bank
statements
 Denied credit for no apparent reason
 Getting bills from companies you don’t
recognize
 Credit collection agencies collecting on
debts that don’t belong to you
What to do if you are a
victim
 Place a fraud alert on your credit report
 Close accounts that you know or believe
someone has tampered with or opened
fraudulently
 File a report with local police
 File a complaint with FTC
Be Aware of Scams
 Debt relief
 Relief may come from filing for bankruptcy
 This is considered a last resort, stays on
credit report for 10 years!
 Credit repair scams
 Claims to repair your credit are just not true.
 Only time, effort and a plan to repay your
debt will improve your credit report.
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Have you learned
anything?
Q: How do you dispute wrong information on your
credit report?
A: Contact Credit Bureau. They will research this
and if it’s not yours, they have to take it off.
Q: What is the estimated percentage of credit
reports that have wrong information on them?
A: 79%. 29% of these errors can result in a denial
in credit.
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Have You Learned
Anything?
Q: What is one thing you can do yourself to
increase your credit score?
A: Pay bills on time, correct errors, give it time.
Lenders want to see at least 2 years of good
history.
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Upcoming FPW programs
 August 13 Property Insurance
 Local insurance agent Jane Larsen will
discuss home and auto insurance
 September 10
 Late Savers Retirement Guidebook
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