We need to get Financially Fit S.S.C! Who is apart of this Savvy Saving Community, everyone who earns an monetary income regardless of race, gender, religion or age.
Polls taken from 1,002 American adults showed the majority of us lack knowledge of the basics of personal finance like budgeting, saving habits and credit principles.
More than one-third reported do not use a budget to manage their family’s expenses and unfortunately more than 30 percent of those polled either did not know or responded incorrectly when asked to define a good credit score; and nearly one-quarter of the group have never reviewed their credit report. This is a serious problem.
Given the growing importance and influence of credit scores on consumer decisions, it’s startling that the majority of Americans do not understand what constitutes a good credit score. There is definitely a gap in the push for consumerism versus the understanding of how to use credit correctly.
Various factors are used to determine a credit score, including a consumer’s payment history, the amount of debt currently owed and the length of credit history. Not only that but most do not know that there are various credit scoring systems, that calculate insurance, credit cards, mortgage all differently. That means you can have multiple credit scores all in the same month depending which credit score you pull.
An amendment to the federal Fair and Accurate Credit Transactions Act passed in 2004 now allows consumers to receive one free credit report every year from each of the three major credit reporting agencies. Consumers can request their reports online at www.annualcreditreport.com. You can also get free credit reports from fico.com and various credit cards companies that offer your score as part of being a card member.
As easy as it is to check your credit score and review credit reports for errors, many still neglect to take this simple step to protect their credit and pay attention to their finances.
Besides reviewing your credit report, experts agree education is the key to a healthy financial future. Coming Soon! I will have a teaching series on a few of the hot topics such as budgeting, credit debt and financial goal setting!
Stay tuned!
