How to Rebuild Good Credit

In today’s uncertain economy, the ability to manage one’s finances can mean the difference between fiscal stability and barely getting by. Acquiring the knowledge needed to stay on top of your personal financial management is vital. But harried consumers find it difficult to get the financial information they need.

Two organizations have formed a partnership to provide a convenient, accessible option for improving consumers’ financial literacy. National consumer advocacy group Consumer Action and credit card provider Capital One are offering a series of free educational materials that teach responsible personal finance skills entitled Money Wi$e. The series presents in simple, straightforward terms the building blocks for developing and honing skills such as saving, budgeting and balancing a checkbook.

“We kicked off the program a year ago by addressing how credit works and we’ve now come full circle to provide guidelines for improving one’s credit,” says Diana Don, Capital One’s director of financial education.

The final educational topic in the Money Wi$e series, “Rebuilding Your Credit,” brings to light the significance of having a solid credit history and the impact one’s credit has on securing loans and renting apartments -- even obtaining employment. For those with damaged credit, it covers ways to start afresh and rebuild a positive credit record.

Tips from the “Rebuilding Good Credit” brochure include:

Q: What can I do to keep my credit in good standing?

A: Avoiding late payments is a great place to start. If you are unable to pay your bills in full, make the required minimum payments due on credit accounts and arrange payments on other bills. Keeping a calendar of when your credit card payments and other bills are due can help you track your finances.

Q: I’ve seen advertisements for companies that claim they can repair my credit. Are they legitimate?

A: Legally, credit repair companies can only take the same steps you can. Save your money -- only time, discipline and patience will repair damaged credit.

“With fewer than 30 percent of lower-income adults aware that there are free resources available to help them to better manage their finances, it is important to prevent language and income level from becoming hindrances to understanding one’s personal finances,” adds Ken McEldowney, Consumer Action’s executive director. “We believe that everyone has the right to free resources to help them help themselves and we want to help provide them.”

The multilingual Money Wi$e materials are available at more than 6,500 community organizations nationwide, as well as online at www.consumer-action.org or by sending a self-addressed, legal-sized stamped envelope to: Consumer Action Money Wi$e, 717 Market Street, Suite 310, San Francisco, CA 94103.

In addition to the written materials, the Money Wi$e program offers training events in which Consumer Action representatives conduct one-on-one training on how to counsel community groups on the basics of the Money Wi$e program. The Money Wi$e Train-the-Trainer events are open to participating community-based organizations.

Courtesy of ARA Content

EDITOR’S NOTE: For more information contact Diana Don, Capital One at (703) 205-1165, diana.don@capitalone.com or Ken McEldowney or Linda Sherry, Consumer Action, (415) 777-9648, linda.sherry@consumer-action.org.

Headquartered in Falls Church, Va., Capital One Financial Corporation (NYSE: COF) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 48.2 million customers and $56.9 billion in managed loans outstanding as of September 30, 2002. Capital One, a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 index.

Consumer Action is a non-profit, membership-based organization founded in San Francisco in 1971. Consumer Action serves consumers nationwide by advancing consumer rights, referring consumers to complaint-handling agencies and publishing multilingual educational materials. Consumer Action also advocates for consumers in the media and before lawmakers and compares prices on credit cards, bank accounts and long distance services.