Your Credit Health

Importance of credit reports and scores

Today more than ever, our credit report is a prized possession not to be taken lightly. Chances are, you've seen the Free Credit Report.com commercial on television. In it, the couple is forced to live with their parents because the young bride had bad credit but her husband didn't know and now they can't get a loan to buy a home! We'll talk in a moment about where and how to get your credit report.

Your credit report generates a credit score, also called your FICO score, an overall health indicator of your credit-worthiness. You should think of it as a "credit report card." Lenders use your credit score as one of the decision-making factors when determining whether you'll qualify for a loan.

What is FICO?

What goes into it, what does it all mean? Your FICO score generally consists of five types of information:

The types of credit you have in use (Revolving lines, installment loans, mortgages, etc)

New Credit (How many recent new debts have you opened)

Length of Credit History

Amount Owed (As a percentage of your total available credit)

Payment History (How you have paid your creditors; on time, 30 days late, etc.)

You can find out more about your FICO score at www.myfico.com

Hot to get a credit score report

A good rule of thumb is to give yourself a credit health checkup annually. You are entitled to one free credit report from each of the three major credit bureaus each year. You can obtain these at www.annualcreditreport.com, not FreeCreditReport.com. If you do not know your FICO score, you may want to consider purchasing it. It may cost you $15-$20, but will give you a baseline for what work needs to be done.

If you find any discrepancies on your credit report, contact each credit bureau in regard to the error. The error will be investigated and if unsubstantiated, it will be removed and corrected. Errors can occur when individuals with similar names have credit inaccurately showing on their credit reports. It is important to ensure you are the only one using your identity to obtain credit.

Actions that can impact your credit

Be aware when making decisions related to finance, the following can affect your score:

When you get a new credit card or transfer a balance to get a lower interest rate

Closing credit cards can reduce your available credit and bring your amount owed as a percentage of total debt higher

If you know you have no self control in the area of spending and charging, then closing the line may be your best bet, regardless of scoring implications

Whenever possible, pay your bills on time and pay down your balances

Paying down debt is a major focus in the United States today and it is hard work, but the national savings rate is going up and we are finally saving more than we spend. Diligence and focus make the difference, while prioritizing necessities and cutting the fat can have a big impact. Visit www.choosetosave.org

Recent times have made it harder than ever to obtain credit for many; taking these steps can put you on the road to financial success, having the best credit options if, and when, you need them. Now go on, get your personal credit checkup today!

About the author

Jamie Turner

Jamie Turner is a consultant in Humana's Human Capital Performance Group. Jamie joined Humana in 2008 to lead the development of the "My Money, My Health a guide to financial fitness" program. Jamie has a BBA from Marshall University and a MBA from Point Park University.

Note: The information available in this article is for informational purposes only and not for the purpose of providing financial advice. Financial recommendations are provided for illustrative purposes only. You’re responsible for verifying the accuracy and suitability of all assumptions and calculations. Please seek the advice of licensed or competent individuals before making any investment or financial planning decisions. Don't rely solely on financial or retirement information found in e-PlanProfessor.

Medical Plans

Humana group medical plans are offered by Humana Medical Plan, Inc., Humana Employers Health Plan of Georgia, Inc., Humana Health Plan, Inc., Humana Health Benefit Plan of Louisiana, Inc., Humana Health Plan of Ohio, Inc., Humana Health Plans of Puerto Rico, Inc. License # 00235-0008, Humana Wisconsin Health Organization Insurance Corporation, or Humana Health Plan of Texas, Inc., or insured by Humana Health Insurance Company of Florida, Inc., Humana Health Plan, Inc., Humana Health Benefit Plan of Louisiana, Inc., Humana Insurance Company, Humana Insurance Company of Kentucky, or Humana Insurance of Puerto Rico, Inc. License # 00187-0009, or administered by Humana Insurance Company or Humana Health Plan, Inc. For Arizona residents, plans are offered by Humana Health Plan, Inc. or insured by Humana Insurance Company. Administered by Humana Insurance Company.

Go365^® is not an insurance product. Not available with all Humana health plans.

Dental Plans

Humana individual dental plans are insured or offered by Humana Insurance Company, HumanaDental Insurance Company, Humana Insurance Company of New York, The Dental Concern, Inc., CompBenefits Insurance Company, CompBenefits Company, CompBenefits Dental, Inc., Humana Employers Health Plan of Georgia, Inc., Humana Health Benefit Plan of Louisiana, Inc., or DentiCare, Inc. (DBA CompBenefits). Discount plans are offered by HumanaDental Insurance Company, Humana Insurance Company, or Texas Dental Plans, Inc. For Arizona residents: Insured by Humana Insurance Company. For Texas residents: Insured or offered by Humana Insurance Company, HumanaDental Insurance Company, or DentiCare, Inc. (DBA CompBenefits).

Humana group dental plans are offered by Humana Insurance Company, HumanaDental Insurance Company, Humana Insurance Company of New York, Humana Health Benefit Plan of Louisiana, The Dental Concern, Inc., Humana Medical Plan of Utah, CompBenefits Company, CompBenefits Insurance Company, CompBenefits Dental, Inc., Humana Employers Health Plan of Georgia, Inc., or DentiCare, Inc. (DBA CompBenefits).

Vision Plans

Humana individual vision plans insured by Humana Insurance Company, The Dental Concern, Inc., Humana Insurance Company of New York, Humana Health Benefit Plan of Louisiana, Inc. For Arizona residents: Insured by Humana Insurance Company. For Texas residents: Insured by Humana Insurance Company.

Humana group vision plans are offered by Humana Insurance Company, HumanaDental Insurance Company, Humana Health Benefit Plan of Louisiana, Humana Insurance Company of Kentucky, Humana Insurance Company of New York, CompBenefits Insurance Company, CompBenefits Company, or The Dental Concern, Inc.

Life Insurance Plans

Humana group life plans are offered by Humana Insurance Company, Humana Insurance Company of Kentucky, or Kanawha Insurance Company.

Long Term Disability and Short Term Disability

Humana long term disability and short term disability plans are offered by Kanawha Insurance Company or Humana Insurance Company.

Workplace Voluntary Benefits

Humana Cancer, Critical Illness, Accident, Hospital Indemnity, Life and Disability Income plans are insured by Humana Insurance Company, Kanawha Insurance Company, or Humana Insurance Company of New York.

View a complete list of the legal entities that offer, underwrite, administer or insure insurance products and services.

Limitations and exclusions

Our health benefit plans, dental plans, vision plans, life and supplemental plans, workplace voluntary benefit products, long term disability plans, and short term disability plans have exclusions, limitations, and terms under which the coverage may be continued in force or discontinued. Our dental plans, vision plans, life and supplemental plans, workplace voluntary benefit products, long term disability plans, and short term disability plans may also have waiting periods. For costs and complete details of coverage, call or write Humana or your Humana insurance agent or broker.

Individual applications are subject to eligibility requirements.

Before applying for group coverage, please refer to the pre-enrollment disclosures for a description of plan provisions which may exclude, limit, reduce, modify or terminate your coverage. View plan provisions or check with your sales representative.

For group plans, please refer to your Benefit Plan Document (Certificate of Coverage/Insurance or Summary Plan Description) for more information on the company providing your benefits.

Statements in languages other than English contained in the advertisement do not necessarily reflect the exact contents of the policy written in English, because of possible linguistic differences. In the event of a dispute, the policy as written in English is considered the controlling authority.

Your Credit Health

Your credit report is your financial health record. Explore steps to understanding what it is and how to keep it healthy.

Importance of credit reports and scores

What is FICO?

Hot to get a credit score report

Actions that can impact your credit

About the author

Jamie Turner

Read between the lines

Stay on schedule with your shots

Take an active role in your good health