Control Credit - Debt
Why Is Credit So Important?
Your credit history, or credit report, is a financial report card. It includes an overview of your financial past and present, detailing both your current credit and how you've managed your credit over time.
Your credit report information is also used to determine your credit score. Your credit score is based on a mathematical calculation that estimates how likely you are to repay a new loan based on your past history. Credit scores typically range between 300 and 850 and scores higher than 700 show responsible debt management. To learn how your credit score is calculated visit MyFico.com.
Your credit history follows you throughout your life. Your credit score is used by lenders, landlords, mortgage brokers and even employers to determine your credit worthiness; that is, your means and ability to repay your debts. Bad or no credit can affect your ability to rent apartments or get a loan or mortgage, your access to employment opportunities, and even the price you pay for home or car.
Credit reports are prepared by three major firms: Experian, Equifax and TransUnion. In Illinois, you are entitled to one free copy of your credit report each year from each of these three national credit reporting agencies. By going to AnnualCreditReport.com, you can apply for your free reports on-line and get tips on how to read your credit report. You have to pay a fee when you order your credit report if you want your credit score included.
Attend the Debt 101: Credit Card and Loan Basics workshop to learn more about the importance of credit and how to manage it!
Take the Quiz-
48% of credit card owners only pay their minimum monthly payment each month.
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The average household with debt carries approximately $10,000 to $12,000 in total revolving debt and has 9 credit cards.
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Credit card companies usually offer credit limits to college students between $500 and $3000, with higher interest rates than non-students, between 18% and 20%.
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The US has recently seen an over 50% increase in bankruptcies among people under age 25 (fastest growing age range for bankruptcies).
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Total consumer debt topped $2 trillion for the first time in 2003.
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66% of Americans don't pay off their entire credit card bill each month.
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Persons entering college are offered an average of 8 credit cards the first week of school.
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55% of college students acquire their first credit card during their first year of college, and 83% of college students have at least one credit card.
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45% of college students are in credit card debt, the average credit card debt being $3,066.
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Undergraduates students carry an average of three credit cards.
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Graduating students have an average of $20,402 in combined education loan and credit card balances.
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20% of graduating college students have $10,000 or more in non-school related credit card debt.
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University administrators state that they lose more students to credit card debt than to academic failure.
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Students double their average credit card debt-and triple the number of credit cards in their wallets-from the time they arrive on campus until graduation.