Negative Items and Suzy’s Credit Report

Many people are victimized by unfair, inaccurate, or unsubstantiated credit reporting… and then there’s Suzy:

negative items and suzy's credit report

Meet Suzy

Suzy’s Credit Score – 720

  • Honors graduate 3 years ago
  • Steady job with great career potential
  • Solid 720 credit score
  • Follows trends and loves a great bargain
  • Wants to settle down in a few years

Suzy currently pays all of her bills on time and feels financially confident.

Did you know?

  • A 700 and above credit score increases your chances of getting a loan by 98%
  • Credit card companies gives those with good credit better deals and “rewards”

Suzy’s Escapades

Suzy’s Credit Score – 608

  • Opens 6 department store credit cards
  • Forgets to pay two of her credit cards
  • Forgets to forward address after a move
  • Buys a house with a high interest rate
  • Has collectors looking for her

Suzy’s credit score drops with every new credit card.

Did you know?

  • Department store sales people earn a commission when someone opens up a credit card

3 Years Later

Suzy’s Credit Score – 532

  • Creditors are calling and writing
  • Credit score taking a nosedive from all the late payments
  • Cant get new credit
  • Financial track record destroyed
  • Can’t afford to stay in style anymore

Suzy starts to default on her mortgage payments and feels financially insecure and stressed.

Did you know?

  • The number of homeowners who have fallen underwater on their mortgages – climbed to 11.1 million in 2011

5 Easy things you can proactively do now to avoid being in Suzy’s shoes later

  1. Don’t apply for unnecessary lines of credit
  2. Pay your bills on time
  3. Keep low balances on your credit cards, don’t max them out
  4. Don’t close unused credit cards
  5. Get copies of your credit report to ensure the information is up-to-date and accurate
Posted in Credit Report
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