Melissa Jones has come to you with a problem involving her credit since she knows you are taking a class in Personal Financial Planning and you are determined to help her.
Melissa makes about $40,000 a year and has four credit cards, with a total balance of $8,000. She still owes around $30,000 on a student loan on which she is paying about $375 a month.
Melissa tells you her FICO credit score is 680 and she is paying about 18-20% on her credit cards. A few years ago, she had one of her credit cards stolen and some items were wrongfully charged on it. Melissa wonders if this affects her credit score.
Melissa would like to find out more about her credit score and see if she can reduce her monthly debt payments. What advice would you give her?