Rental Obstacle + Solutions: Low Income
-Some Renters reject people whose Rent would be more than 30% of GMI
-Solutions
-Apply for Housing
... [Show More] Assistance
-Expand housing search areas
-Get a roommate
-Move in w/family or friends
Strategies for decreasing expenses and debt
Prioritize "needs over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services(e.g. cable, telephone)
-limit miscellaneous spending
- stick to a shopping list
- pay off a loan or credit card
- move to more affordable housing
- change insurance coverage to lower premiums
Fair Credit Reporting Act (FCRA)
-Right to know what is your file
-Right to dispute incomplete or inaccurate information
- Access to your file is limited only to people w/valid need (i.e, creditor, insurer)
-You may seek damages from violators (sue)
- States have their own rules which additionally project
What documents to use when tracking income
-Paychecks, direct deposits slips
- If self-employed, income + expenses sheet
- Additional income checks or cash
- Government benefit letters
Site to obtain free credit report
www.annualcreditreport.com
Chapter 13 bankruptcy
Allows individuals w/regular income to develop a plan to repay all or part of their debts over 3 to 5 years can stop foreclose sure proceedings + may delinquent mortgage payments over time
Steps to take if victim of identity theft
-Place a fraud alert w/the credit reporting agencies
- order credit reports to review + identify inaccuracies
- create an identify theft report obtain ID theft affidavit from the FTC
- File a police report
Fair and Accurate credit Transcription Act (FACTA)
-Right to free annual credit report
- Right to place a fraud alert on your credit file
- Receipts may not include entirety of credit card #s
Four Steps of Asset building
1.Chose the right bank or credit union account
2. Build savings for emergencies + Large purchase 3. Invest for retirement
4. Take advantage of tax credits
Fair credit billing Act (FCBA)
-You can dispute billing errors associated w/credit card account
- Must be billed in a timely manner
% of factors how they affect credit score
35% account history
30% amounts owed
15% length of credit history
10% new credit
10% types of credit used
Credit reporting agencies on FICO Score
-EQUIFAX
- EXPERIAN
- TRANS UNION
FICO Score
-Credit scores often referred to as
= Fair Isaac Corporation
Range:300-850
Means test
A bankruptcy qualification that considers income + equity in assets to determine if a client has the ability to repay part of the debt
How to fix: Credit Card maxed / too much debt
-Pay down debt + keep balances low
- Pay more than minimum
- know the balance - check statements
How to fix: Delinquencies / collections / Judgments
Get current + pay on time moving forward
- sett up payments reminders
- adjust budget
Factors in determining credit score
-Payments History
- Capacity used
- Length of credit history
- Type of credit used
- New credit
Inquires
Request initiated by a company or person for a consumer's credit profile information
How to fix: Incorrect information on a credit report
Dispute inaccuracies:
*Notify credit reporting agencies of inaccuracies + provide supporting documentation
* keep records of dispute documentation
Steps in creating a budget
1. Help client identify short + long-term goals
2. Track income
3. Track expenses
4. Adjust goals + budget increase income decrease expenses + debt %.
5. Create client action plan [Show Less]