You’ve probably seen commercials advertising ways to obtain your credit report. While the commercials might be catchy, they typically don’t really have much to do with credit scores or even tell you how important they really are. Do you know what your credit score is and how it can impact you? It pays to know!
A good credit score can determine a lot of things today:
Whether you will be approved for credit
What interest rate you will get on loans
The cost of your homeowner’s and car insurance
Whether you are approved to rent a home or apartment
In some cases, whether you get a job offer or type of license
One little number can affect some pretty serious stuff right?
In this lagging economy, more people than ever are struggling to stay out of debt, stay on top of their credit and keep their scores up. Anything from a late payment on a credit card to a high debt-to-income ratio can damage a person’s credit score and it can takes years to get back a credit score that you feel proud of.
According to a recent article in USA Today, “The credit scores of millions more Americans are sinking to new lows… Recent figures show what 25.5% of consumers – nearly 43.4 million people – now have a credit score of 599 or below.” (USA Today, July 12, 2010)
In today’s economic climate of tighter lending standards, many Americans are finding it harder than ever to obtain loans and sinking credit scores aren’t helping the picture. According to a recent article, the Department of Housing and Urban Development said it intends to require borrowers to have a credit score of at least 500 to qualify for FHA-insured loans. The agency has not required a minimum score before. (CNNMoney.com, July 16, 2010)
Not only that, a late payment, foreclosure or other credit blemish could prevent you from getting a job! “According to a survey by the Society for Human Resource Management, 60% of employers are using credit checks when filling at least some of their openings.” (CNNMoney.com, July 22, 2010)
Credit scores can have a huge impact on your life. So where do you begin to get on top of your personal debt situation? The first step is to be informed. How can you even begin to get out of debt if you don’t know where to start?
Fortunately, Primerica can help. With the Primerica DebtWatchers™ product, you can get your credit score and see where you stand. Primerica DebtWatchers can help you be in the know and in control. It pays to be informed. Do you know what YOUR credit score is? One little number can play a huge impact in your financial life!
Primerica, representatives of Primerica, Equifax and Primerica DebtWatchers™ will not act as an intermediary between Primerica DebtWatchers customers and their creditors and do not imply, promise or guarantee that credit files or credit scores will or may be improved, repaired, boosted, enhanced, corrected or increased by use of the Primerica DebtWatchers product. Primerica DebtWatchers™ is a trademark of Primerica, Inc. Product not available for purchase by residents of Washington D.C.
If you need help kicking the credit habit, try paying with cash. New studies show those who pay with cash:
Spend less. Those who pay with credit – and even debit – buy more things, pay a higher price for them (sometimes twice as much) and are less aware of how much they’ve spent than those who pay with cash.*
Learn positive habits. For example, learn how to save for items you want versus charging them and impulse buying.
Gain leverage. Storeowners will often shave huge percentages off big-ticket items for customers who pay with cash.
Become wealthier. Since there’s no postponing the payment, you learn to truly budget and live within your means. And those who plan and budget are almost 40% wealthier than those who don’t.**
Today you’ve got more reasons than ever to free yourself from the burden of credit card debt. Here are a few:
Compound interest works against you. When you allow debt to “sit” on your credit cards accumulating interest, one of the most powerful forces in the world – compound interest – is actually working against you to keep you in debt bondage.
No end in sight. Most credit card debt is considered revolving. Because of the way interest is calculated, it can be difficult to tell how long it will take to pay off revolving credit card debt. It can feel like you’re on a debt treadmill from which you can’t escape.
You’re not in control. Your lender is. Your credit card issuer determines your interest rate, credit limit, fees and charges based on your credit history. You don’t get to select your own credit terms.
Great balance transfer deals are almost non existent. They used to pour out of your mailbox, but now those zero or low APR balance transfer deals with low or no fees are practically gone – and you’re stuck with the balance.
If you’re stuck on the revolving debt treadmill, you may be putting your financial health at risk. But help is available!
That’s where Primerica’s newest product, Primerica DebtWatchers™ comes in. This exciting new product allows you to create and monitor your own personalized path to debt freedom. With this product you can:
Take control of your debt situation by using the information in your Equifax Credit Report™ to create a simple to understand plan for paying off your debt
Monitor your Equifax credit report for key changes
Track your progress toward debt freedom
Set goals and monitor actual balances reported by your creditors
Get up to $25,000 in Identity Theft Insurance with no deductible*
Access your information any time, online
You’ll even be notified via email or text message of key changes to your Equifax Credit Report – all for a low monthly fee.
Becoming debt free is a good goal to have – and Primerica DebtWatchers can help you get there. Talk to your Primerica representative today to find out how to get started!
*Insurance underwritten by member companies of American International Group, Inc. The description herein is a summary only. It does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for complete details of coverage and exclusions.
Primerica, representatives of Primerica, Equifax and Primerica DebtWatchers™ will not act as an intermediary between Primerica DebtWatchers customers and their creditors and do not imply, promise or guarantee that credit files or credit scores will or may be improved, repaired, boosted, enhanced, corrected or increased by use of the Primerica DebtWatchers product. Primerica DebtWatchers is a trademark of Primerica Client Services, Inc. Equifax Credit Report is a trademark of Equifax Inc. FICO® is a registered trademark of Fair Isaac Corporation. References to Equifax refer to Equifax Consumer Services LLC, a wholly owned subsidiary of Equifax Inc. See http://my.primerica.com for additional important disclosures. Product not available to residents of Washington, D.C.
The current economic downturn has many families worried about losing their job, struggling to keep up with bills and worried about the future. The outlook seems bleak – 11.6 million Americans are unemployed1 and third quarter 2008 foreclosures jumped 71% over the same time period the previous year.2
Primerica presents four tips to help your finances weather a recession.
Slash and burn bills wherever possible. An easy place to start: auto and homeowner’s insurance. “Some insurers give long‑time customers up to a 10% discount, but that can pale in comparison with the savings from switching insurers. At least once every two years, get a quote from another insurer.”3
Keep good credit. To keep that all‑important credit score attractive, make sure you pay your bills on time, limit the number of credit cards you have and avoid financing more than one big‑ticket item at once.
Boost income. Start a part‑time business or work a few hours a week at a second job to get through a crunch. The Primerica Business Opportunity is a great way to do something enjoyable while earning extra cash each month. You can do the business part time or full time and work at your pace, on your schedule!4
Times are tough, but following these simple tips can go a long way to helping you and your family come out on the other side of the recession with your long‑term financial goals still intact.
Kansas City Star, www.kansascity.com, February 6, 2009
www.CNNMoney.com, October 23, 2008
Money, November 2008
In Canada, the part‑time option is not available in all jurisdictions and, where it is available, is subject to certain restrictions.
