Many people are victimized by unfair, inaccurate, or unsubstantiated credit reporting... and then there's Suzy:
Meet Suzy
Suzy's Credit Score - 720
- Honors graduate 3 years ago
- Steady job with great career potential
- Solid 720 credit score
- Follows trends and loves a great bargain
- Wants to settle down in a few years
Suzy currently pays all of her bills on time and feels financially confident.
Did you know?
- A 700 and above credit score increases your chances of getting a loan by 98%
- Credit card companies gives those with good credit better deals and "rewards"
Suzy's Escapades
Suzy's Credit Score - 608
- Opens 6 department store credit cards
- Forgets to pay two of her credit cards
- Forgets to forward address after a move
- Buys a house with a high interest rate
- Has collectors looking for her
Suzy's credit score drops with every new credit card.
Did you know?
- Department store sales people earn a commission when someone opens up a credit card
3 Years Later
Suzy's Credit Score - 532
- Creditors are calling and writing
- Credit score taking a nosedive from all the late payments
- Cant get new credit
- Financial track record destroyed
- Can't afford to stay in style anymore
Suzy starts to default on her mortgage payments and feels financially insecure and stressed.
Did you know?
- The number of homeowners who have fallen underwater on their mortgages - climbed to 11.1 million in 2011
5 Easy things you can proactively do now to avoid being in Suzy's shoes later
- Don't apply for unnecessary lines of credit
- Pay your bills on time
- Keep low balances on your credit cards, don't max them out
- Don't close unused credit cards
- Get copies of your credit report to ensure the information is up-to-date and accurate
