Table of Contents
Acknowledgments xi
Preface: Discover Why Your Credit Rating Is So Important xiii
Introduction: Understanding How Credit Works Can Save You Money xix
Chapter 1 Determining Your Current Financial and Credit Situation 1
What Is Debt? 3
Determining Your Current Financial Situation 7
So, Where Do You Stand Financially? 20
Identifying Credit Mistakes You've Made in the Past 22
Setting Your Financial Goals and Objectives in Today's Economy 23
Your Financial Goals 24
What's Next? 28
Chapter 2 The Credit Reporting Agencies: Who They Are and What They Do 29
What Is a Credit Reporting Agency, Anyway? 30
In Their Own Words… 34
What's Next? 36
Chapter 3 Credit Reports 101 37
A Preview of How Credit Scores Work 42
What Is a Credit Report? 43
The Anatomy of Your Credit Report 46
How the Information on Your Credit Report Is Compiled 50
Who Can View My Credit Report? 52
Why Your Credit Reports Are So Important 53
What's Next? 56
Chapter 4 Solving Credit Score Mysteries 57
Prepare to Get a Bit Confused by Credit Scores 58
Understanding Credit Score Ranges 60
E = MC2 Is a Complex Formula… Your Credit Score May Seem Just as Complex 64
Credit Score vs. FICO Score: What's the Difference? 67
What's a VantageScore 2.0? 70
The Inside Scoop on FICO Scores from the Company that Calculates Them 71
What's Next? 81
Chapter 5 Obtaining Your Credit Reports and Credit Scores 83
How to Request Free Copies of Your Credit Report Annually 84
Obtaining Your Credit Report Online 85
Submitting Your Request by U.S. Mail 89
Requesting Your Free Credit Report by Telephone 92
The Cost of Obtaining Additional or More Frequent Credit Reports 93
What About Your Credit Score? 94
The Benefits of a Three-in-One Credit Report 95
You Have Your Credit Report, Now What? 98
What Your Creditors Have to Say About Your Credit Report 100
Figuring Out What Needs to Happen Next 104
Misconceptions and Bad Information Can Lead to Costly Mistakes 106
What's Next? 106
Chapter 6 How to Update or Fix Your Credit Report 109
Reviewing Your Credit Reports 110
The Types of Information That Can Be Removed from Your Credit Reports 113
How to Correct Errors Listed in Your Credit Reports 114
Initiating Disputes with the Credit Reporting Agencies 115
Negotiating with Your Creditors 119
Know Your Legal Rights as a Consumer 126
Working with a Credit Counseling Company 129
Meet Collections Expert Michelle Dunn 129
What's Next? 138
Chapter 7 Ten Strategies for Improving Your Credit Rating 139
Your Actions Always Impact Your Credit Worthiness 140
Strategies for Improving Your Credit Rating 140
Strategy 1 Pay Your Bills on Time, Every Time 141
Strategy 2 Keep Your Credit Card Balances Low 144
Strategy 3 Having a Long History Counts, So Don't Close Unused Accounts 146
Strategy 4 Only Apply for Credit When Needed, Then Shop for the Best Rates on Loans and Credit Cards 147
Strategy 5 Separate Your Accounts After a Divorce 148
Strategy 6 Correct Inaccuracies within Your Credit Reports and Make Sure Old Information Is Removed 150
Strategy 7 Avoid Too Many Hard Inquiries 151
Strategy 8 Avoid Bankruptcy, If Possible 152
Strategy 9 Avoid Consolidating Balances onto One Credit Card 153
Strategy 10 Negotiate with Your Creditors or Collection Agencies 154
Avoiding Credit Repair Scams 156
Learn How to Better Manage Your Finances and Expenses 159
Advice from a Credit and Debt Counseling Expert 160
What's Next? 170
Chapter 8 Credit Card Management Strategies 171
Credit Cards Can Be Your Best Friend or Biggest Credit Foe 172
What Are Credit Cards? 174
The Potential Benefits of Credit Cards 175
The Potential Drawbacks of Credit Cards 176
What to Consider Before Using a Credit Card 177
Types of Credit Cards 178
Using Credit Cards Intelligently 181
Credit Card Lingo You Should Understand 184
Shop Around for the Best Credit Card Deals 187
Managing Your Existing Credit Card Accounts 188
Take Advantage of Special Balance Transfer Offers 188
Should You Consider Debt Consolidation? 194
What to Do if Your Credit Card(s) Get Lost or Stolen 196
Advice from Experts Representing Three Credit Card Comparison Websites 197
What's Next? 211
Chapter 9 Finding and Obtaining the Best Rate on an Auto Loan 213
What Happens If You Don't Pay? 215
Understanding Your Credit History 215
Your Credit Reports and Credit Score Directly Impact Vehicle Financing 218
Shop Around for the Best Vehicle Financing Options 220
Vehicle Financing Options for People with Bad Credit 221
What's Next? 222
Chapter 10 Finding and Obtaining a Mortgage 223
Pre-Qualifying for a Mortgage Makes Sense 224
There Are Many Reasons to Pre-Qualify for a Mortgage 225
Finding a Mortgage Broker or Lender 227
What Is a Mortgage Broker? 228
Fewer Mortgage Options Are Available These Days 232
Money-Saving Strategies for Mortgage Shoppers 234
Pre-Qualification vs. Pre-Approval 236
You're Pre-Qualified or Pre-Approved, Now What? 240
What If Your Application Gets Rejected? 241
What's Next? 242
Chapter 11 All About Refinancing in a Tough Economy 243
How Recent Changes in the Mortgage Industry Will Impact You 244
Refinancing 101 247
Popular Reasons Why People Choose to Refinance 250
The Paperwork You'll Need to Refinance 255
Meet Greg McBride, Bankrate.com's Senior Financial Analyst 256
What's Next? 259
Chapter 12 Getting the Help You Need to Fix Your Credit Problems 261
Being too Proud to Ask for Help Can Lead to Worse Problems 262
Solutions for People with Credit and Financial Problems 264
Strategies for Finding a Qualified Financial Planner 267
Credit Counselors Are Available to Help You 269
Beware of Scams 273
Debt Consolidation May Be a Viable Option 275
Don't Be Afraid to Seek Help 276
Advice from a Certified Financial Planner 277
What's Next? 281
Chapter 13 Identity Theft and Bankruptcy: Two Credit Rating Killers to Avoid 283
How Many People Out There Are Posing As You? 284
Watch Out! Identity Theft Is the Fastest Growing Crime in America 284
How Criminals Obtain Your Private Information 285
You May Already Be a Victim of Identity Theft and Not Even Know It 287
What to Do if You Become an Identity Theft Victim 288
Consider Using An Identity Theft Prevention Service 289
Meet Todd David, CEO and Founder of LifeLock 290
Thoughts About Bankruptcy from an Attorney 295
What's Next? 300
Chapter 14 Managing Your Finances: There's an App For That 301
Minc.com Is an Online and App Tool 305
Manage Your Credit Cards with a Smartphone App 307
Now It's Your Turn… 311
Glossary 313
Index 319
