Suzy had good credit with a score of 720 after always paying her bills on time. However, over a few years her habits changed - she opened several new credit cards and store cards, forgot to pay some bills, moved and didn't update her address, and took out a high interest mortgage. As a result, her credit score dropped significantly to 532 and later 608 as debt collectors started contacting her and she struggled financially. The document warns that small mistakes can destroy your financial track record over time and shares tips to maintain good credit.

1. Many people are victimized by unfair, inaccurate, or
unsubstantiated credit reporting... and then there’s Suzy
MEET SUZY
SUZY’S ESCAPADES
Honors graduate
3 years ago
Wants to settle
down in a few years
Steady job with
great career potential
Follows trends and
loves a great bargain
Solid 720 credit score
Pay your
bills on time
Don’t apply for
unnecessary
lines of credit
Don’t close unused credit cards
Get copies of your credit
report to ensure the
information is up-to-date
and accurate
Keep low balances
on your credit cards,
don’t max them out
55
720
SUZY’S
CREDITSCORE
Did you know?
A 700 and above
credit score increases
your chances of
getting a loan by 98%
Pays all of her bills
and credit cards on-time
Suzy feels financially
confident
Did you know?
Credit card companies
gives those with good credit
better deals and “rewards”
3 YEARS LATER
Creditors are
calling and writing
Can’t afford to stay
in style anymore
Credit score taking
a nosedive from all
the late payments
Financial track record
destroyed
Can’t get new credit
532
SUZY’S
CREDITSCORE
Starts to default on her
mortgage payments
Suzy feels financially
insecure and stressed
Opens 6 department
store credit cards
Has collectors
looking for her
Forgets to pay two
of her credit cards
Buys a house with
a high interest rate
Forgets to forward
address after a move
608
SUZY’S
CREDITSCORE
Suzy’s credit score drops
with every new credit card
Pays bills late and has
collectors after her
Did you know?
Department store sales
people earn a commission
when someone opens up
a credit card
Did you know?
The number of homeowners
who have fallen underwater
on their mortgages – climbed
to 11.1 million in 2011
SOURCES:
http://money.cnn.com/2012/03/01/real_estate/underwater_borrowers/index.htm
http://www.federalreserve.gov/consumerinfo/fivetips_creditscore.htm
http://www.nytimes.com/2009/12/12/your-money/credit-and-debit-cards/12cards.html?_r=0
http://www.totalbankruptcy.com/news/articles/credit-cards/credit-card-inquiry.aspx
http://www.ehow.com/info_8432547_retail-cards-people-bad-credit.html
http://www.today.com/id/43690720/ns/today-money/t/what-if-you-stop-paying-your-credit-cards/#.UYl7MbW3-jo
http://www.debtreliefnetwork.com/the-5-benefits-of-having-a-high-credit-score/
easy things you can proactively do now
to avoid being in Suzy’s shoes later
1
54
2
3
GET
OPEN A CREDIT CARD
AND GET AN INSTANT
OFF INSTANTLY
10% BALANCE
GOOD!
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