Earning Extra Credit. Understanding what it takes to maintain and manage good credit now and for your future

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Earning Extra Credit. Understanding what it takes to maintain and manage good credit now and for your future"

Transcription

1

2 Credit 101 Why Credit is Important 3 Your Credit Score 5 FICO Scoring - From Good to Bad 7 Credit Bureaus 8 Credit-Worthy vs. Credit-Ready 9 Are you Drowning in Debt? 10 2

3 Why Credit is Important College is one of the most rewarding and challenging life experiences. Now that you are out of school, you are financially independent and now responsible for your own earnings. Establishing good credit is as essential as obtaining a college degree. However, the majority of graduates leaving college are in debt from student loans and credit cards. Debt doesn t always have to carry a negative connotation; it s sometimes a necessary reality of life, especially post-college. It s how you manage your debt properly that will lead you down the right road to success and financial freedom. This booklet is designed to teach you how to maintain and manage your credit. What is Credit? Credit is defined as borrowing money from a lender and repaying it at a later date, usually with accrued interest charged on top of the initial sum borrowed. When a lender issues credit, they are essentially telling the borrower they are confident in the borrower s ability and intention to repay their loan. The level of confidence lenders have in potential borrowers depends on certain factors, such as: a person s income, amount of outstanding debt, and how they repay their debt. What is a credit report? A credit report provides you with all of the information in your credit file which is maintained by a consumer recording company. A credit report also includes a record of everyone who has a received a consumer report about you with a certain amount of time ( inquiries ). You are entitled to receive a disclosure copy of your credit file from a consumer reporting company under federal law and the laws of various states. A credit report will produce a credit score, known as a FICO score, which establishes your credit rating. 3

4 What does a credit report contain? There are four main categories of information in your credit report. 1.Personal Information Your credit report contains information that identifies you, including the following: Name Social Security Number Date of Birth Current address and previous addresses Phone number Current employer and previous employers 2.Your Credit History Your credit report includes your history of bill paying with companies such as: Banks Mortgage companies Retail stores TWO Main Types of Credit Home loans, or mortgages, and personal or department store loans linked to items Revolving credit on credit cards Finance companies Utility companies 3.Inquiries Your credit report lists the lenders and credit grantors that have requested or received your credit report. The general rule is the fewer inquiries on your credit report, the better. 4.Public Records Your credit report lists any items that may affect your credit, including: Court judgments, including child support judgments Tax liens Bankruptcies Delinquencies 4

5 Your Credit Score What is a credit score? A credit score evaluates information in your credit file. Lenders use a credit score to help determine whether a person qualifies for a particular loan. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service specifically, the likelihood that the person will make payments on time. FICO Scores FICO scores judge your credit behavior with score ranges from The three-digit number determines your risk factor in lending money. The higher your FICO, the more likely you will be approved to borrow more money at favorable terms or rates. Five different categories exist in determining your FICO score, each weighted with varying degrees of importance. Payment History (35%) Are your bills paid on time? Past-due accounts, whether in collections or bankruptcies, will lower your FICO score. The most recent your past-due accounts are, the worse it will be for your credit score. Lenders are interested in how timely your pay your bills. Money Owed (30%) The amount of debt you owe on and the ratio between outstanding debt and available credit. Available credit is the sum of your usable credit lines. The lower the ratio of debt to available credit, the better. However, it is also important to look at how much available credit you have and this could affect your approval rate. For example, if you have an open credit card with no balance and a $5,000 credit limit that you know you will never use, and you are applying for a mortgage, you should close your available credit immediately in order to maximize your approval for a mortgage. Lenders look at outstanding debt, such as car or home loans and credit cards at their credit maximum. So, keep your card balances at 25% or less of their limits. 5

6 Duration of Credit History (15%) How long have you been borrowing? Then more extensive your credit history, the better your credit score because you have established creditworthiness. The more information about your past payment history gives a more accurate prediction of your future actions. New Credit (10%) Many new account inquiries in the last 12 months can lower your credit score. If you have applied for multiple credit cards or loans, you will have a lot of inquiries or credit hits on your credit report. Numerous credit inquiries can indicate you may be in some kind of financial trouble or may be taking on additional debt even if you have not used the cards or gotten the loans. This is why you should not apply for multiple loans with the hopes that one gets approved. FICO scores only count inquiries from the past year. Type of Credit (10%) The number of open credit accounts you have and the types of companies you have taken out credit with, such as department stores, can also affect your credit score. 6

7 FICO Scoring - From Good to Bad FICO Scoring (300 to 850) The Good: A FICO score above 668 is considered a good credit risk to lenders. Impeccable credit takes hard work. A flawless FICO score involves paying your bills on time, condensing the number of credit cards you have to two or three (especially eliminating department store cards that carry high interest rates), charging only up to 25% of you credit limit at a time, paying over the minimum payment, not abusing balance transfers and most importantly, checking your credit report yearly at a minimum. Not only does a high FICO score allow for a seamless borrowing process with high approval rates, but it also can guarantee you lower interest rates. The Average: A FICO score between is considered average. You may have missed a few payments that have gone days into delinquency or have an outstanding dispute on your credit report that has not been resolved. There may be some delays in the approval process so lenders can verify your income and assets. The national FICO score average is 678. The Ugly: A credit score below 483 is considered a poor credit risk. Also referred to as a subprime borrower, poor credit risk borrowers have two or more 30-day delinquencies in the last 12 months, one or more 60 day delinquencies in the last 24 months, a judgment, foreclosure, repossession or charge-off in the last 24 months, a bankruptcy in the last 5 years or a debt-toincome ratio of 50% or greater. Debt-to-income ratio is defined as your current income versus your current debt. To obtain a loan with poor credit can be a slow and painful process; a cosigner may be required and you may be taxed with a higher interest rate. So now you know there s a record to your borrowing, it s important to order your own credit report. After all, it s YOUR credit life, as personal as a daily journal, with all your successes and all your downfalls. 7

8 Credit Bureaus Did you know? Under the Federal Credit Reporting Act, you can obtain a FREE copy of your credit report once a year. Visit or call You can obtain up to three free credit reports yearly. However, the website will NOT provide your FICO score; you will need to pay a fee to obtain this critical piece of information. You can order your credit report and FICO scores through three major credit bureaus. Each credit bureau can report different credit information about you so you should request information from all three agencies. Note: Banks will request a tri-merge report (all three credit bureaus) to review your credit when you apply for a mortgage. Equifax Experian TransUnion PO Box Atlanta, GA PO Box 2104 Allen, TX PO Box 1000 Chester, PA In addition, if you are turned down for credit, you can obtain a free copy of your credit report within 60 days of being declined. Why check your credit report? Human Error No one is perfect, but your credit report must be. Twenty-five percent (25%) of credit reports contain serious errors. Common mistakes include: identity mix-up and incorrect or outdated information on the part of the company reporting the information or the bureau itself. If you detect a human error, it is important to contact your credit reporting agency immediately, so they can begin an investigation. Fraud If you have had any unauthorized charges to credit cards, it is important to check your credit report to see if any other illegal activity has taken place. If fraud occurs, inform your credit card companies and credit reporting agency and file a report with the police. To prevent identity theft, check your credit card statements monthly, do not give out your Social Security number, keep your passwords private, secure your and shred regular mail. Fraud occurs more frequently than one would think. Upon checking your credit report, contact the credit agency as soon as possible if you detect a mistake or fraud. Under the Fair Credit Reporting Act, they have 30 days to investigate and solve any issues. 8

9 Credit-Worthy vs. Credit-Ready Credit-ready applicants are generally those with no established credit history or a limited credit history. Credit-worthy applicants are generally those with satisfactory established credit. The Truth about Credit Cards Zero percent or low introductory rates expire and then increase after a couple of months to a year. If you miss one payment during that time period, your rate can increase to over twenty percent (20%) and you will be charged with a late fee. If the interest rate is variable, it fluctuates with the prime and can therefore increase without notice. Certain credit cards award you points for the amount of money your charge on it, escalating your spending habits. Sometimes looks are deceiving. Just because you qualify for a $3,000 credit line does not mean you can afford to spend $3,000 and max out your credit limit. If you do not limit yourself now, a compulsive shopping habit can follow you into the future. Credit Card payment example: Suzy has racked up a credit card balance of $3,000 while in college that charges a 15% interest rate. She makes a minimum payment of $60 each month. How long will it take Suzy to pay off her balance and how much interest will she accrue over the life of the loan? Minimum payment $60 Total interest payment $1,737 Number of payments 79 Number of years to pay off 6 Moral of the story? Always make over your minimum payment. If Suzy simply doubled her payments to $120/month, she would cut her total interest payments to $620, her number of payments to 31, and the number of years she has to payoff her balance to 2 years. 9

10 Are you Drowning in Debt? If you feel like you are on the road to debt doomsday, there is a way to help you gain back your financial footing. Check out the following websites for help and information. National Foundation for Credit Counseling Federal Trade Commission Federal Citizen Information Center Bankruptcy Blues Declaring Bankruptcy is like declaring war on yourself. Contrary to popular belief, bankruptcy is not a way of dodging your debt or erasing your credit history. If you do file for bankruptcy, your student loans will not be forgiven. Bankruptcy is a last resort for those who have tried all other outside sources, including credit counseling. Why you should think twice about bankruptcy Stays on your credit report for up to 10 years. Hinders your ability to get a car loan or mortgage. New credit cards will carry high interest rates or require you to secure a credit line with a down payment deposit. Can prevent you from being hired for a job or obtaining a lease on an apartment. Doesn t forgive all of you debts such as: child support /alimony, student loans, income taxes, fines, penalties, criminal resolution. It s more difficult to file a Chapter 7. Your income must be less than the median in the state you reside in. Others will be required to file a Chapter 13 or have $100 or more of discretionary income to pay towards debt. So think twice before filing away your freedom. Consider and exhaust all other alternatives to clearing your debt before you choose bankruptcy. Congratulations on taking the initiative to become a credit-conscious borrower. After reading this booklet, you should have a better grasp of what credit means and how to maintain healthy credit today and in the future. 10

Reviewing C Your Credit Report

Reviewing C Your Credit Report chapter 2 Reviewing C Your Credit Report What do your creditors have to say about the way you handle money? Having a good credit score can help you turn your home-buying dream into a reality. There s much

More information

UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor

UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor Most studies about consumer debt have only focused on credit cards and mortgages. However, personal debt also may include medical expenses, school

More information

Financial Empowerment Curriculum Moving Ahead Through Financial Management. Workshop Credit Overview

Financial Empowerment Curriculum Moving Ahead Through Financial Management. Workshop Credit Overview Financial Empowerment Curriculum Moving Ahead Through Financial Management Workshop Credit Overview 1 Workshop Objectives Explain why credit is important. Access and read a copy of your credit report.

More information

Understanding Credit. The Three C s of Credit. What is a Credit Bureau?

Understanding Credit. The Three C s of Credit. What is a Credit Bureau? Understanding Credit By definition, the word credit has to do with trust. This is why credit impacts so many financial issues in our lives including the extension of a loan or credit card, how high an

More information

Understanding Credit. UMassFive College Federal Credit Union

Understanding Credit. UMassFive College Federal Credit Union Understanding Credit UMassFive College Federal Credit Union Objectives Understand the role of credit bureaus Discuss the importance of your credit report Review the components of a credit score Explain

More information

GREENPATH FINANCIAL WELLNESS SERIES

GREENPATH FINANCIAL WELLNESS SERIES GREENPATH FINANCIAL WELLNESS SERIES UNDERSTANDING YOUR CREDIT REPORT & SCORE Through financial knowledge and expertise, we provide high-quality products and services that enable people to enjoy a better

More information

Understanding Credit. Megan Stearns, Credit Counselor

Understanding Credit. Megan Stearns, Credit Counselor Understanding Credit Megan Stearns, Credit Counselor Obtaining your free credit report will lower your credit score. Closing old accounts can help your credit score. Paying off the balances on your credit

More information

Using Credit to Your Advantage

Using Credit to Your Advantage Hands on Banking Using Credit to Your Advantage Credit Reports, Credit Scores and Dealing with Debt The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the

More information

Your Credit Report. P.O. Box 15128 Spokane Valley, WA 99215 800.852.5316 www.hzcu.org

Your Credit Report. P.O. Box 15128 Spokane Valley, WA 99215 800.852.5316 www.hzcu.org Your Credit Report P.O. Box 15128 Spokane Valley, WA 99215 800.852.5316 www.hzcu.org You may not think about them every day, but your credit report and the three little digits that make up your credit

More information

How to improve your FICO Score in perilous times By Blair Ball. National Distribution of FICO Scores

How to improve your FICO Score in perilous times By Blair Ball. National Distribution of FICO Scores How to improve your FICO Score in perilous times By Blair Ball When you re applying for credit whether it s a credit card, a car loan, a personal loan or a mortgage lenders want to know your credit risk

More information

CREDIT REPORT: Adapted from the National Consumer Law Center Inc s. brochure entitled, The Truth About Credit Reports and Credit Repair Companies.

CREDIT REPORT: Adapted from the National Consumer Law Center Inc s. brochure entitled, The Truth About Credit Reports and Credit Repair Companies. CREDIT REPORT: HOW TO CHECK YOUR CREDIT Getting a copy of your credit report is important because: it gives you an idea of what your credit history looks like, you can make sure that the information on

More information

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net Your Credit Report 750. 670. 620. 575. You may not think about them every day, but your credit reports and the three little digits that make up your credit score probably influence your life in many ways.

More information

Improve Your Credit Put Bad Credit Behind You

Improve Your Credit Put Bad Credit Behind You Improve Your Credit Put Bad Credit Behind You Improve your credit While it s possible to get by without credit, access to credit is essential for buying a home, financing a car or getting a credit card.

More information

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net Your Credit Report 750. 670. 620. 575. You may not think about them every day, but your credit report and the three little digits that make up your credit score probably influence your life in many ways.

More information

Topic 3 Credit Report

Topic 3 Credit Report Topic 3 Credit Report Questions to Think About: What are the different types of credit and why is credit important? What are its advantages and disadvantages? What is a credit report? How do you read it

More information

Credit Report Info Packet

Credit Report Info Packet Credit Report Info Packet Information in this Packet What Is a Credit Report?.....................3 What Is a Credit Score?..................... 4 Who Can See Your Credit Report?.............. 5 Ordering

More information

Credit Reports & Credit Scores

Credit Reports & Credit Scores Credit Reports & Credit Scores Reviewing: Information that is and isn t in your credit report. What information determines your credit score. Tips to improve your credit score. What s In Your Credit Report

More information

The West Virginia State Treasurer s Office. A free publication provided by

The West Virginia State Treasurer s Office. A free publication provided by YOUR CREDIT SCORE A free publication provided by The West Virginia State Treasurer s Office Visit www.wvtreasury.com or Call 1.800.422.7498 From the Office of West Virginia State Treasurer, John D. Perdue

More information

How to Use Credit. Latino Community Credit Union & Latino Community Development Center

How to Use Credit. Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & the Latino Community Development Center www.latinoccu.org Copyright

More information

Your Credit Report. Trade lines. The bulk of a credit report is dedicated to your history of handling credit. It includes:

Your Credit Report. Trade lines. The bulk of a credit report is dedicated to your history of handling credit. It includes: Your Credit Report The three major credit bureaus in the United States are Experian, TransUnion, and Equifax. These companies acquire data from banks, credit unions, mortgage lenders, and retail establishments.

More information

Understanding a Credit Report! April 21, 2011. New York City Department of Consumer Affairs. All rights reserved.

Understanding a Credit Report! April 21, 2011. New York City Department of Consumer Affairs. All rights reserved. Understanding a Credit Report! Questions to Think About What are the different types of credit and why is credit important? What is a credit report? How does credit impact future financial goals? 3 What

More information

UNDERSTANDING YOUR CREDIT REPORT. Understanding Your Credit Report Page 1

UNDERSTANDING YOUR CREDIT REPORT. Understanding Your Credit Report Page 1 UNDERSTANDING YOUR CREDIT REPORT Understanding Your Credit Report Page 1 SO YOU RE ABOUT TO APPLY FOR CREDIT, THE FIRST THING YOU LL WANT TO GET IS YOUR CREDIT REPORT FOR REVIEW ESPECIALLY FOR SOMETHING

More information

TABLE OF CONTENTS. CHAPTER 1: Credit Report.. Page 1. CHAPTER 2: Credit Score...Page 3. CHAPTER 3: Credit Reporting Agencies.

TABLE OF CONTENTS. CHAPTER 1: Credit Report.. Page 1. CHAPTER 2: Credit Score...Page 3. CHAPTER 3: Credit Reporting Agencies. TABLE OF CONTENTS CHAPTER 1: Credit Report.. Page 1 CHAPTER 2: Credit Score.....Page 3 CHAPTER 3: Credit Reporting Agencies.Page 6 CHAPTER 4: How to get a FREE Credit Report Page 8 CHAPTER 5: The 4 th

More information

A summary of your financial reliability

A summary of your financial reliability A summary of your financial reliability Used by banks and other financial institutions, landlords, utility companies and insurance companies 3 major credit bureaus: Transunion, Equifax, Experian 1. Identifying

More information

Make the most of your credit score

Make the most of your credit score Make the most of your credit score Consolidated Credit 5701 West Sunrise Boulevard Fort Lauderdale, FL 33313 1-800-210-3481 www.consolidatedcredit.org Congratulations on taking this important step to learn

More information

Understanding and managing your credit

Understanding and managing your credit Understanding and managing your credit Overview Understanding how credit works and how it affects your chances of getting approved for a loan is important. In this presentation, you ll learn helpful ways

More information

Credit History CREDIT REPORTS CREDIT SCORES BUILDING A STRONG CREDIT REPORT

Credit History CREDIT REPORTS CREDIT SCORES BUILDING A STRONG CREDIT REPORT CREDIT What You Should Know About... Credit History CREDIT REPORTS CREDIT SCORES BUILDING A STRONG CREDIT REPORT YourMoneyCounts Understanding what your credit history is what s in it, what s not in it

More information

BalanceTrack. The World of Credit Reports

BalanceTrack. The World of Credit Reports BalanceTrack The World of Credit Reports Credit reports and credit scores influence our lives in many ways. Your history of credit management can affect the cost of the credit you receive, your ability

More information

Understanding Credit Reports and Scores and How to Improve It!

Understanding Credit Reports and Scores and How to Improve It! Understanding Credit Reports and Scores and How to Improve It! Robin Minor, CCCC What Will We Cover? When we are finished, you will understand: Credit Reports and Credit Scores - What they are and how

More information

CREDIT REPORTS WHAT EVERY CONSUMER SHOULD KNOW ABOUT MORTGAGE EQUITY P A R T N E R S

CREDIT REPORTS WHAT EVERY CONSUMER SHOULD KNOW ABOUT MORTGAGE EQUITY P A R T N E R S F WHAT EVERY CONSUMER SHOULD KNOW ABOUT CREDIT REPORTS MORTGAGE EQUITY P A R T N E R S Your Leaders in Lending B The information contained herein is for informational purposes only. The algorithymes and

More information

Financial Empowerment Curriculum. Moving Ahead Through Financial Management. Module Three: Mastering Credit Basics

Financial Empowerment Curriculum. Moving Ahead Through Financial Management. Module Three: Mastering Credit Basics Financial Empowerment Curriculum Moving Ahead Through Financial Management Mastering Credit Basics Reviewing, Understanding and Improving Your Credit Module 3: Mastering Credit Basics Time Clock: 11:00-12:00

More information

Credit Report The single most important document for protection against identity theft.

Credit Report The single most important document for protection against identity theft. Understanding your Credit Report The single most important document for protection against identity theft. What to do if you spot errors A recent study shows that 79 percent of credit reports contained

More information

Webinar #3: Effective Credit and Debt Management

Webinar #3: Effective Credit and Debt Management 1 Webinar #3: Effective Credit and Debt Management Sponsored by: Massachusetts Financial Literacy Trust Fund The Office of Massachusetts State Treasurer & Receiver General Facilitator: Jacqueline Cooper

More information

Managing Your Credit Report and Scores. Apprisen. 800.355.2227 www.apprisen.com

Managing Your Credit Report and Scores. Apprisen. 800.355.2227 www.apprisen.com Managing Your Credit Report and Scores Apprisen 800.355.2227 www.apprisen.com Managing Your Credit Report and Scores Your credit score is one of the most important aspects of your personal finances. From

More information

Credit Reports. published by AAA Fair Credit Foundation

Credit Reports. published by AAA Fair Credit Foundation Credit Reports published by AAA Fair Credit Foundation Credit Reports 1. What is a Credit Report?..........................................................2 2. What Your Credit Report Reveals About You...................................4

More information

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What is Credit? When someone lends you money, and you pay them back with interest, they have extended you credit. Credit

More information

Understanding Credit Reports and Scores and How to Improve it!

Understanding Credit Reports and Scores and How to Improve it! Understanding Credit Reports and Scores and How to Improve it! Apprisen What Will We Cover? When we are finished, you will understand: Credit Reports and Credit Scores - What they are and how they are

More information

Understanding, managing, and rebuilding your credit

Understanding, managing, and rebuilding your credit Understanding, managing, and rebuilding your credit Objective Bank of America is committed to providing information that will help you understand the effect credit can have on lending, and what you can

More information

Credit Reports Credit Scores. Understanding reports and scores Correcting errors Obtaining a free report

Credit Reports Credit Scores. Understanding reports and scores Correcting errors Obtaining a free report Credit Reports Credit Scores Understanding reports and scores Correcting errors Obtaining a free report What goes into your credit report...and who uses it? A A credit report is a summary of your financial

More information

Financial payment profile Fair Isaac Corporation (FICO) 300 to 850 the higher, the better

Financial payment profile Fair Isaac Corporation (FICO) 300 to 850 the higher, the better What is a credit score? Financial payment profile Fair Isaac Corporation (FICO) 300 to 850 the higher, the better National distribution of FICO scores What a low score could cost you? Tens of thousands

More information

$uccessful Start and the Office of Student Services Present: THE WINNING SCORE

$uccessful Start and the Office of Student Services Present: THE WINNING SCORE $uccessful Start and the Office of Student Services Present: THE WINNING SCORE QUESTIONS TO BE ANSWERED How is a credit score calculated? Why is a credit score important? How can I improve my credit score?

More information

Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum To Your Credit Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum TABLE OF CONTENTS Page Who Poses the Most Credit Risk? 1 How to Get a Free Credit Report Once a Year 2 Annual

More information

Understanding Your Credit Report

Understanding Your Credit Report Understanding Your Credit Report What is credit? Credit is the use of someone else s money in exchange for a promise to pay it back on a given date. There are two major types of credit: Revolving and Installment.

More information

Your Credit Report 595 Market Street, 16th Floor, San Francisco, CA

Your Credit Report 595 Market Street, 16th Floor, San Francisco, CA Your Credit Report 750. 670. 620. 575. You may not think about them every day, but your credit report and the three little digits that make up your credit score probably influence your life in many ways.

More information

Office of Student Financial Management

Office of Student Financial Management February 2015 Office of Student Financial Management Kasia Palm: Director of Student Financial Management What is Credit? - The ability to obtain goods/services before payment based on the trust that a

More information

Credit Histories & Credit Scores

Credit Histories & Credit Scores Credit Histories & Credit Scores Credit Histories - Definition A continuing record of a borrower s debt commitments and how well they have been honored. (Similar to a transcript) Credit Score - Definition

More information

Understanding Your Credit Score and Credit Report. George Williams, CPA, JD, LLM Ross, Rosenthal & Company, LLP June 21, 2012

Understanding Your Credit Score and Credit Report. George Williams, CPA, JD, LLM Ross, Rosenthal & Company, LLP June 21, 2012 Understanding Your Credit Score and Credit Report George Williams, CPA, JD, LLM Ross, Rosenthal & Company, LLP June 21, 2012 What is a Credit Score? What is a Credit Report? A credit score is a number

More information

The ABCs of Credit Credit Scores Establishing Credit Maintaining Good Credit Credit Cards Managing Credit Challenges

The ABCs of Credit Credit Scores Establishing Credit Maintaining Good Credit Credit Cards Managing Credit Challenges The ABCs of Credit Credit Scores Establishing Credit Maintaining Good Credit Credit Cards Managing Credit Challenges CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan,

More information

Your Credit Score. 800-491-2328 www.congressionalfcu.org. score of at least 620 for approval and 760 for the best interest rate.

Your Credit Score. 800-491-2328 www.congressionalfcu.org. score of at least 620 for approval and 760 for the best interest rate. 800-491-2328 www.congressionalfcu.org Your Credit Score Your credit score can have a major impact on your life. Not only do creditors typically check your score when deciding whether or not to approve

More information

Office of Student Financial Management

Office of Student Financial Management September 2013 Office of Student Financial Management Kasia Palm: Director of Student Financial Management What is Credit? - The ability to obtain goods/services before payment based on the trust that

More information

NORTH & EAST LUBBOCK CDC

NORTH & EAST LUBBOCK CDC NORTH & EAST LUBBOCK CDC FINANCIAL LITERACY TRAINING UNIT 3 UNIT 3 UNDERSTANDING CREDIT Instructor: Reggie Dial, NELCDC Program Manager & HUD-Certified Housing Counselor AGENDA Your credit rating Credit

More information

www.olsonadvisory.net Credit Repair Kit

www.olsonadvisory.net Credit Repair Kit www.olsonadvisory.net Credit Rating Credit Scores Clearing Credit Mistakes Registering a Dispute Clearing Open Collection Accounts Sample Letters Credit Repair Kit Re-Aging Accounts Building Credit Letters

More information

Building Good Credit and Improving Your Credit Score

Building Good Credit and Improving Your Credit Score Building Good Credit and Improving Your Credit Score US Consumer Debt Statistics August 2014 Consumer Debt = $11.74 Trillion 5% Increase over 2013 9% Delinquent Mortgages = $8.24 Trillion Avg. Mortgage

More information

GL 04/09. How To Improve Your Credit Score

GL 04/09. How To Improve Your Credit Score GL 04/09 How To Improve Your Credit Score Table of Contents 1. What is Credit and What is Debt? 2. The 4 C S of Credit 3. Keeping Score With Your Credit 4. The FICO Score Breakdown 5. How to Rebuild Your

More information

Solving The Mystery of Credit Reports

Solving The Mystery of Credit Reports Solving The Mystery of Credit Reports 800.456.4828 www.tinkerfcu.org Credit reports and credit scores are increasingly important to our lives. They affect the cost of credit we receive, where we live,

More information

Understanding Credit Cards

Understanding Credit Cards Understanding Credit Cards INTRODUCTION This brochure can help you understand how credit cards work, become familiar with common terms offered with a credit card, and avoid the dangers of using credit

More information

Student Loans and Credit Reports

Student Loans and Credit Reports Student Loans and Credit Reports Presented by: Debbie Murphy We Will Discuss: The role of credit in personal finance Review of credit terms and factors Impact of student loans on reports and scores Next

More information

Understanding Your Credit Score

Understanding Your Credit Score Understanding Your Credit Score Contents Your Credit Score A Vital Part of Your Credit Health...... 1 How Credit Scoring Helps You........ 2 Your Credit Report The Basis of Your Score............. 4 How

More information

Wondering how to borrow using the equity in your home? Ask a Citizen. The Citizens Guide to Home Equity Financing

Wondering how to borrow using the equity in your home? Ask a Citizen. The Citizens Guide to Home Equity Financing Wondering how to borrow using the equity in your home? Ask a Citizen. The Citizens Guide to Home Equity Financing We understand you have questions about home borrowing. We can help. At Citizens Bank, we

More information

Understanding your Credit Score

Understanding your Credit Score Understanding your Credit Score Understanding Your Credit Score Fair, Isaac and Co. is the San Rafael, California Company founded in 1956 by Bill Fair and Earl Isaac. They pioneered the field of credit

More information

PNC Financial Education FINANCIAL OPS. Banking Solutions for Military Personnel. Credit: Self study Guide

PNC Financial Education FINANCIAL OPS. Banking Solutions for Military Personnel. Credit: Self study Guide PNC Financial Education FINANCIAL OPS Banking Solutions for Military Personnel Credit: Self study Guide Revision Date: 11/2012 PNC Financial Education:FINANCIAL OPS Understanding Credit We all have financial

More information

Student Loans and Credit Reports

Student Loans and Credit Reports Student Loans and Credit Reports We Will Discuss The role of credit in personal finance Review of credit terms and factors Impact of student loans on reports and scores Next steps you can take to encourage

More information

How do I get good credit?

How do I get good credit? Slide 1 Credit The information provided in this e-course is intended for educational purposes only and does not constitute specific advice for you as an individual. When evaluating your particular needs,

More information

Credit Repair Personal injuries can destroy credit. Learn all about your credit score & how to repair it. Ross A. Jurewitz JUREWITZ LAW GROUP

Credit Repair Personal injuries can destroy credit. Learn all about your credit score & how to repair it. Ross A. Jurewitz JUREWITZ LAW GROUP Credit Repair Personal injuries can destroy credit. Learn all about your credit score & how to repair it. Ross A. Jurewitz JUREWITZ LAW GROUP DISCLAIMER THIS IS NOT LEGAL ADVICE. This is not financial

More information

Understanding Your Credit Score and How You Can Improve It

Understanding Your Credit Score and How You Can Improve It Understanding Your Credit Score and How You Can Improve It How is your score calculated? The exact formula is a mystery and protected by the Federal Trade Commission Think of it as a secret recipe. Credit

More information

Familiarize yourself with laws that authorize and regulate vehicle dealership financing and leasing.

Familiarize yourself with laws that authorize and regulate vehicle dealership financing and leasing. W ith prices averaging more than $28,000 for a new vehicle and $15,000 for a used vehicle, most consumers need financing or leasing to acquire a vehicle. In some cases, buyers use direct lending: they

More information

Credit Score Management Seminar. Manage, protect and improve your Credit Score!

Credit Score Management Seminar. Manage, protect and improve your Credit Score! Credit Score Management Seminar Manage, protect and improve your Credit Score! Overview What is a Credit Score How Lenders Use Your Credit Score How Your Credit Score Impacts You What Makes Up Your Credit

More information

Your Credit Report What It Says about You

Your Credit Report What It Says about You Your Credit Report Your Credit Report What It Says about You Most people finance their homes with mortgages and pay for their cars with loans. Young people often obtain loans to pay for college. And, of

More information

Your Credit Repair Solution

Your Credit Repair Solution Your Credit Repair Solution Introduction Your Credit Report Solution will help you understand that there is help available for fixing your credit. Even though you might feel as though you are alone and

More information

IMPROVE YOUR CREDIT SCORE. Effective Credit Management At Your Fingertips

IMPROVE YOUR CREDIT SCORE. Effective Credit Management At Your Fingertips IMPROVE YOUR CREDIT SCORE Effective Credit Management At Your Fingertips Introduction In this ebook, you will get valuable information including: What is a credit score The score breakdown Managing your

More information

Understanding Your FICO Score. Understanding FICO Scores

Understanding Your FICO Score. Understanding FICO Scores Understanding Your FICO Score Understanding FICO Scores 2013 Fair Isaac Corporation. All rights reserved. 1 August 2013 Table of Contents Introduction to Credit Scoring 1 What s in Your Credit Reports

More information

A CONSUMER'S GUIDE TO INSURANCE COMPANIES' USE OF CREDIT INFORMATION. from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE

A CONSUMER'S GUIDE TO INSURANCE COMPANIES' USE OF CREDIT INFORMATION. from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE A CONSUMER'S GUIDE TO INSURANCE COMPANIES' USE OF CREDIT INFORMATION from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE A MESSAGE FROM YOUR INSURANCE COMMISSIONER Greetings, Auto and Homeowners

More information

Taking Charge of Your Financial Future

Taking Charge of Your Financial Future Taking Charge of Your Financial Future Why is Your Credit Score Important? Understanding credit scoring can help you manage your credit. By knowing how credit risk is evaluated, you can take actions that

More information

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives Introduction Instructor and student introductions. Module overview. 1 2 Your name. Student Introductions Your expectations, questions, and concerns about credit. Purpose will: Show you how to read a credit

More information

PRACTICAL MONEY GUIDES CREDIT HISTORY. Your credit history and how it affects your future

PRACTICAL MONEY GUIDES CREDIT HISTORY. Your credit history and how it affects your future PRACTICAL MONEY GUIDES CREDIT HISTORY Your credit history and how it affects your future YOUR CREDIT HISTORY THE RECORD OF HOW WELL YOU HANDLE CREDIT To get a glimpse of your financial future, many businesses

More information

Good Credit Why is Having Good Credit Important?

Good Credit Why is Having Good Credit Important? Good Credit Why is Having Good Credit Important? Many people in the United States have fi nancial problems. They have poor credit, are in debt, have little savings or have a combination of all three. One

More information

Solving the Credit Puzzle. L G & W Federal Credit Union

Solving the Credit Puzzle. L G & W Federal Credit Union Solving the Credit Puzzle L G & W Federal Credit Union Knowledge Check How much do you already know about credit scoring? Sample Credit Report Credit Bureaus Equifax TransUnion Experian Who Can Pull Your

More information

CREDIT-BASED INSURANCE SCORES WHAT CONSUMERS NEED TO KNOW

CREDIT-BASED INSURANCE SCORES WHAT CONSUMERS NEED TO KNOW CREDIT-BASED INSURANCE SCORES WHAT CONSUMERS NEED TO KNOW HAVE YOU EVER APPLIED FOR A LOAN OR A CREDIT CARD? RENTED AN APARTMENT OR OBTAINED UTILITY SERVICE? If so, you know your credit history is very

More information

Overview of Credit Scoring

Overview of Credit Scoring Overview of Credit Scoring Page 19 of 134 Overview of Credit Scoring This session will focus on providing you with both information about this topic as well as new ideas and activities for making this

More information

YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights

YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights WHY YOU NEED TO KNOW ABOUT CREDIT REPORTS & CREDIT SCORES Having good

More information

Understanding Vehicle Financing

Understanding Vehicle Financing Understanding Vehicle Financing Understanding Vehicle Financing With prices averaging more than $31,000 for a new vehicle and $17,000 for a used model from a dealership, you might consider financing or

More information

Facts On Credit Bureaus

Facts On Credit Bureaus Facts On Credit Bureaus The following information relates to the understanding and use of a credit score. Listed are details regarding the determination of a credit score, how you can find out what your

More information

Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money.

Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money. TEACHER GUIDE 7.3 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money. Your Credit Score Priority Academic Student Skills Personal

More information

Your Credit Score. It s Not As Bad Or As Permanent As You May Think. Presented by Jennifer Matthews, MBA President and CEO

Your Credit Score. It s Not As Bad Or As Permanent As You May Think. Presented by Jennifer Matthews, MBA President and CEO Your Credit Score It s Not As Bad Or As Permanent As You May Think Presented by Jennifer Matthews, MBA Things to Know What a credit score is Where to get a free credit report What goes into your credit

More information

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by:

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Credit Workshop What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Concept Checklist What will I learn today? [ ] What is Credit? [ ] Advantages/

More information

Understanding Your Credit Score Contents Your Credit Score A Vital Part of Your Credit Health...... 1 How Credit Scoring Helps You........ 2 Your Credit Report The Basis of Your Score............. 4 How

More information

Establishing and Managing Credit

Establishing and Managing Credit Establishing and Managing Credit Section Objectives Using credit wisely is an important part of the financial management process and establishing your financial security. Credit allows you to buy now and

More information

to Know About Credit, but Were Afraid to Ask

to Know About Credit, but Were Afraid to Ask Everything You Ever Wanted to Know About Credit, but Were Afraid to Ask What is Credit? Confidence in a purchaser's s ability and intention to pay, displayed by entrusting the buyer with goods or services

More information

A Credit Smart Start. Michael Trecek Sr. Risk Analyst Commerce Bank Retail Lending

A Credit Smart Start. Michael Trecek Sr. Risk Analyst Commerce Bank Retail Lending A Credit Smart Start Michael Trecek Sr. Risk Analyst Commerce Bank Retail Lending Agenda Credit Score vs. Credit Report Credit Score Components How Credit Scoring Helps You 10 Things that Hurt Your Credit

More information

Conquering Credit. The Do s and Don ts of Keeping Your Credit Squeaky Clean. Course Objectives Learn About:

Conquering Credit. The Do s and Don ts of Keeping Your Credit Squeaky Clean. Course Objectives Learn About: Conquering Credit Course Objectives Learn About: Types of Credit How to Establish Credit Credit Score vs. Credit Report Avoiding Identity Theft The Do s and Don ts of Keeping Your Credit Squeaky Clean

More information

Credit Reports. published by AAA Fair Credit Foundation

Credit Reports. published by AAA Fair Credit Foundation Credit Reports published by AAA Fair Credit Foundation Credit Reports 1. What is a Credit Report?...2 2. What Your Credit Report Reveals About You...................................4 3. Getting a Copy

More information

BMG LoansAtWork. Credit Education Program

BMG LoansAtWork. Credit Education Program BMG LoansAtWork Credit Education Program V Course Objectives Identify ways to decrease spending and increase income Discuss common debt traps to avoid Brief discussion of identity theft Define credit Explain

More information

2/7/2015 Credit Scoring Handbook. https://vip.vantageproduction.com/htmltemplate/44909/37d8475b-cf7b-46fa-8091-5d80543e1511/render?

2/7/2015 Credit Scoring Handbook. https://vip.vantageproduction.com/htmltemplate/44909/37d8475b-cf7b-46fa-8091-5d80543e1511/render? We r eher et ohel p. Cal l T oday! 4808324343 https://vip.vantageproduction.com/htmltemplate/44909/37d8475b-cf7b-46fa-8091-5d80543e1511/render?preview 2/10 2/7/2015 Credit Scoring Handbook Notes YourCreditScore

More information

Keys to a Foster Youth s Financial Future Good Credit Curriculum for DCS Staff and to Help Youth Understand Credit: Youth Score in the Game of Life

Keys to a Foster Youth s Financial Future Good Credit Curriculum for DCS Staff and to Help Youth Understand Credit: Youth Score in the Game of Life P a g e 1 Keys to a Foster Youth s Financial Future Good Credit Curriculum for DCS Staff and to Help Youth Understand Credit: Youth Score in the Game of Life Overview: Every year, more than 26,000 young

More information

Secrets of the Credit Score UCCS Employee Seminar 10/21/2014

Secrets of the Credit Score UCCS Employee Seminar 10/21/2014 Secrets of the Credit Score UCCS Employee Seminar 10/21/2014 Schuyler (Skip) Wells, Ent Federal Credit Union Question!! What do credit reports, the number of and use of credit cards, inquiries, credit

More information

R E PA I R YOUR CREDIT

R E PA I R YOUR CREDIT R E PA I R YOUR CREDIT A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management organization. Consolidated

More information

What is a Credit Score and, how does it affect me? Having a Good Credit Score has never been more Important than now

What is a Credit Score and, how does it affect me? Having a Good Credit Score has never been more Important than now What is a Credit Score and, how does it affect me? Although they are closely related, credit reports and credit scores are two completely different things. Credit scores are typically three-digit numbers

More information

Credit Repair Made Easy

Credit Repair Made Easy Credit Repair Made Easy A simple self help guide to credit repair By Don Troiano Introduction My name is Don Troiano and I spent over 15 years in the mortgage industry. Knowing how to guide customers in

More information

Your Credit Score and the Price You Pay for Credit

Your Credit Score and the Price You Pay for Credit SIMPSONS MORTGAGE 724 EVER GREEN TERR SPRINGFIELD, MA 01002 4063334444 REPORT #: 38918 RETURN SERVICE REQUESTED DAVE TESTCASE 5359 FRIDAY STREET ANTHILL, MO 65488 Your Credit Score and the Price You Pay

More information

Student Take Home Guide. Money Smart. To Your Credit

Student Take Home Guide. Money Smart. To Your Credit Student Take Home Guide Money Smart To Your Credit Table of Contents Table of Contents...1 Money Smart...2 To Your Credit...3 Requesting A Copy of Your Credit Report...4 Sample Dispute Letter from The

More information