Understanding Credit. Megan Stearns, Credit Counselor

Size: px
Start display at page:

Download "Understanding Credit. Megan Stearns, Credit Counselor"

Transcription

1 Understanding Credit Megan Stearns, Credit Counselor

2 Obtaining your free credit report will lower your credit score.

3 Closing old accounts can help your credit score.

4 Paying off the balances on your credit cards each month positively affects your credit score.

5 Paying off installment credit accounts early will improve your credit score.

6 Your age, income and gender have no effect on your credit score.

7 If you dispute negative information on your credit report, even if it s true, it will be removed from your credit report.

8 Credit card offers do not affect your score.

9 Agenda Importance of credit Credit reports Credit scores How to improve your score Credit cards Fraud

10 Why is good credit important? Rent or buy things you want or need Save money by borrowing at a lower interest rate Get a job Lease property Open a checking account Establish utility services in your name Obtain insurance at a lower rate

11 Who stores your credit information? Credit bureaus Also known as Credit Reporting Agencies (CRAs) Three national reporting agencies: TransUnion Equifax Experian

12 What is on a credit report? Information about: Last known and previous address Last known employer Public records (financial) Collection accounts Monthly debts Loan repayment history Credit balances vs. available limits Inquiries

13 What should I know about credit reports? Credit reports and scores can be different depending on which agency it is being pulled from and for what purpose Auto loan Mortgage Credit card Employment Renting an apartment or home

14 How to request your credit report. Free copy of credit report every 12 months from each of the credit bureaus Allows you to ensure your credit history is accurate

15 What is a credit score? A complex statistical model developed from thousands of consumer files Analyzes consumers reports to see what data would lead someone to miss a payment FICO score Fair Isaacs Corporation

16 What is the credit score range? Excellent Good Average Poor

17 What makes up your score? 10% 15% 10% 35% Payment History Debts Owed to Creditors Length of Credit History New Credit Credit Types You're Using 30%

18 Payment history is 35%. Many factors are considered including: Past-due items on file Amount past due on delinquent account or collection accounts Severity of delinquency (how long past due)

19 Payment history is 35%. Timeframe and the approximate weight assigned to each year: Most Recent 12 months = 40% Prior 12 to 24 months = 30% Prior 24 to 36 months = 20% Prior 36 to 48 months = 10% Older than 48 months = 0% Items may not fall off your credit report for 7 10 years

20 Debts owed to creditors is 30%. Three components considered: Installment balances compared to original loan amounts Revolving account balances compared to credit limit on the account Total revolving account balances compared to individual's total revolving credit limit

21 Debts owed to creditors is 30%. Keep balances low on all revolving credit The utilization percentage should not exceed 25% Take the total balance (amount owed) and divide it by the total credit limit Avoid consolidating to one account with a higher balance when possible Credit score weighs capacity heavily because most individuals will start to use their credit cards to supplement lost income

22 Length of credit history is 15%. Think twice about closing older accounts Lenders look for long credit history Rapid buildup of accounts may look risky

23 Types of credit is 10%. Looks at overall mix of credit Try to balance the mix Do not open credit cards or loans just for this reason Unlikely this alone will improve score

24 New credit is 10%. Based on how many recent new accounts you have established: Number of accounts Length of history Recent requests for credit Length of time since credit report inquires were made by potential lenders

25 New credit is 10%. Inquires Do rate shopping within two-week period Will only count once within two-week period Mortgages Auto loans Student loans Does not count if individual goes directly to credit reporting agency to check credit

26 What about your credit score? What factors don t affect my credit score? Income Length of residence Length of employment Your race, religion, national origin and marital status Your age Interest rate being charged on your accounts

27 How do common mistakes affect FICO scores? Credit Mistake 680 Score 780 Score Maxed-out credit card Down 10 to 30 points Down 25 to 45 points 30-day late payment Down 60 to 80 points Down 90 to 110 points Debt settlement Down 45 to 65 points Down 105 to 160 points Foreclosure Down 85 to 105 points Down 140 to 160 points Bankruptcy Down 130 to 150 points Down 220 to 240 points

28 How can you improve your score? Payment history tips: Pay your bills on time! If you have missed a payment, get current and stay current If you are having trouble, get help

29 How can you improve your score? Amounts owed tips: Keep balances low on revolving accounts Pay off debt rather than move it around Don t open new credit cards that you don t need

30 How can you improve your score? Length of credit history tips: If you have been managing credit for a short time, don t open a lot of new accounts too rapidly New accounts will lower your average account age

31 How can you improve your score? New credit tips: Do your rate shopping in a focused period of time Re-establish your credit history if you have had problems Note that closing an account doesn t make it go away Note that it is okay to request and check your own credit report

32 Create a positive history. Consistently use your complete name when applying for credit Set up a budget Review your credit report 60 to 90 days before making a major purchase (home or car)

33 Are you falling behind? Contact your lenders immediately Stop using your credit limits until your finances are under control Look to professionals for help National Foundation for Credit Counseling NFCC.org

34 Where can you go for help? Purdue Federal Credit Union We have credit counselors available to help. Joe Redmon , ext Megan Stearns , ext Investment Services located at Purdue Federal Credit Union is available for investment and financial planning help. Call

35 What is a credit card? A credit card is a loan No set time to be paid back There s a pre-determined credit limit Money spent can be paid back in full or in installments Anything not paid back in full is assessed a finance charge

36 What are advantages of credit cards? Convenient Immediate: Use of item now No need for cash Zero liability on fraud Spending record

37 What are disadvantages of credit cards? Can be easy to overspend May include additional fees Interest rate (APR) may go up Can be lost or stolen risk of fraud Credit history damaged if misused

38 Protect yourself from fraud. Never leave receipts lying around. Shred old receipts, bills and unwanted card offers. Protect your credit history. Review your credit report. Review statements carefully. Immediately report any discrepancies or errors on the monthly statement.

39 Protect yourself from fraud. Report a lost or stolen card immediately. Protect personal information. You should never give out your credit card number unless making a telephone, mail order or online purchase. Do not let anyone else use your credit card and do not charge purchases for other people.

40 Questions?

41 Upcoming Presentations Credit Cards November 13 th and 19 th at 11am Fraud and Identity Theft December 4 th and 17 th at 11am

42 Megan Stearns Phone: Website: PURDUEFED.COM Student Blog: PURDUEFED.COM/STUDENTS

Credit Cards. Megan Stearns, Credit Counselor

Credit Cards. Megan Stearns, Credit Counselor Credit Cards Megan Stearns, Credit Counselor Agenda What is a credit card? Types of credit cards Shopping for a credit card Advantages and disadvantages Using credit cards wisely Fraud What is a credit

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

$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

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

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

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

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

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

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

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

Understanding Credit

Understanding Credit Understanding Credit Topics covered: Establishing Credit Credit Scores Repairing Credit Why is credit necessary? Applying for a loan Applying for a credit card Applying for a mortgage Renting an apartment/house

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

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

redit score 600 APR ebt mortgage rate YOUR CREDIT SCORES payment history Credit scores are vital to your financial health nstallment loan

redit score 600 APR ebt mortgage rate YOUR CREDIT SCORES payment history Credit scores are vital to your financial health nstallment loan nstallment loan 20 40 680 ebt 00 redit score 600 665 payment history APR mortgage rate YOUR CREDIT SCORES Credit scores are vital to your financial health A credit score is a number that helps lenders

More information

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

About your credit score. About FICO Score. Other names for FICO Score. http://www.myfico.com/crediteducation/creditscores.aspx

About your credit score. About FICO Score. Other names for FICO Score. http://www.myfico.com/crediteducation/creditscores.aspx http://www.myfico.com/crediteducation/creditscores.aspx About your credit score Your credit score influences the credit that s available to you and the terms (interest rate, etc.) that lenders offer you.

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

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

CREDIT SCORES: AN OFTEN-OVERLOOKED, BUT ESSENTIAL, ELEMENT IN FINANCIAL PLANNING Learn Why They re Important and How You Can Improve Yours

CREDIT SCORES: AN OFTEN-OVERLOOKED, BUT ESSENTIAL, ELEMENT IN FINANCIAL PLANNING Learn Why They re Important and How You Can Improve Yours CREDIT SCORES: AN OFTEN-OVERLOOKED, BUT ESSENTIAL, ELEMENT IN FINANCIAL PLANNING Learn Why They re Important and How You Can Improve Yours ENGLEWOOD, COLORADO Have you applied for a mortgage, car loan,

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

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 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

The materials presented during the webinar are for informational purposes only. They are not offered as and do not constitute an offer for a loan,

The materials presented during the webinar are for informational purposes only. They are not offered as and do not constitute an offer for a loan, The materials presented during the webinar are for informational purposes only. They are not offered as and do not constitute an offer for a loan, professional or legal advice or legal opinion and should

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

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

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

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

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

Keys to Your Financial Future Step 2.5: Credit Repair or Building Plan

Keys to Your Financial Future Step 2.5: Credit Repair or Building Plan 46 MODULE 2: Good credit Keys to Your Financial Future Step 2.5: Credit Repair or Building Plan Use the questions to develop your credit repair or building plan. Do you need to repair your credit history?

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

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

Understanding Your FICO Score

Understanding Your FICO Score Understanding Your FICO Score Contents Your FICO Score A Vital Part of Your Credit Health............ 1 How FICO Scores Help You................. 2 Your Credit Report The Basis of Your FICO Score..............

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

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

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

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

More information

Credit Report Forensics. Boston University Financial Assistance February 15, 2012 Christina Coviello, Senior Assistant Director

Credit Report Forensics. Boston University Financial Assistance February 15, 2012 Christina Coviello, Senior Assistant Director Credit Report Forensics Boston University Financial Assistance February 15, 2012 Christina Coviello, Senior Assistant Director Today s Agenda: What is credit? What is a credit report? How to get a copy

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

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. 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

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

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

About credit reports. Credit Reporting Agencies. Creating Your Credit Report

About credit reports. Credit Reporting Agencies. Creating Your Credit Report About credit reports Credit Reporting Agencies Credit reporting agencies maintain files on millions of borrowers. Lenders making credit decisions buy credit reports on their prospects, applicants and customers

More information

CREDIT & DEBT. Brought to you by: State Treasurer Josh Mandel

CREDIT & DEBT. Brought to you by: State Treasurer Josh Mandel CREDIT & DEBT 1 State Treasurer Josh Mandel SECTION I: BASICS OF CREDIT Types of Credit: Mortgages Car Loan Business Loan Credit Cards Line of Credit Credit & Debt 2 Takeaway Tips: Credit and Debt 1.Pay

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 Scoring and Wealth

Credit Scoring and Wealth the Problem In most games, it is wise to understand the rules before you begin to play. What if you weren t aware that you were playing a game? What if you had not choice whether to play or not? Everyone

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

ratecredit score credit scoremortgage rate payment historydebtinstallment loanapr installment loanaprpayment historydebt Your Credit Scores

ratecredit score credit scoremortgage rate payment historydebtinstallment loanapr installment loanaprpayment historydebt Your Credit Scores 700 ratecredit score mortgage payment historydebtinstallment loanapr credit scoremortgage rate installment loanaprpayment historydebt ratecredit score mortgage 720 665 600 680 740 620 720 665 Your Credit

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

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

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

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

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

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, 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

Personal Finance and the Small Business

Personal Finance and the Small Business Personal Finance and the Small Business 1. Credit Scores Demystified Agenda Britt Scearce, SCORE Counselors to America s Small Business 2. Credit Reports Mary Hurlburt, Consumer Credit Counseling Service

More information

CREDIT SCORE A COMPREHENSIVE GUIDE TO YOUR. arborfcu.org

CREDIT SCORE A COMPREHENSIVE GUIDE TO YOUR. arborfcu.org A COMPREHENSIVE GUIDE TO YOUR CREDIT SCORE You hear a lot of things about your credit score and how important it is, but how much do you really know about it? Courtesy of Arbor Financial Credit Union This

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

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

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

Understanding Your Credit Score

Understanding Your Credit Score Understanding Your Credit Score Contents An Introduction to Credit Scores...... 1 How Credit Scoring Helps You........ 2 Your Credit Report The Basis of Your Credit Score........ 4 How Scoring Works................

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

Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough cash on hand for

Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough cash on hand for Basics of Credit Establishing and maintaining good credit is an important part of financial planning. Typically most individuals do not have enough cash on hand for emergencies, or to make major purchases

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

CREDIT REPORTS & SCORES:

CREDIT REPORTS & SCORES: CREDIT REPORTS & SCORES: A Guide to Understanding and Improving Your Credit NYLAG Financial Counseling Division Workshop Financial Counseling Division New York Legal Assistance Group (212) 613-5000 NYLAG

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

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

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

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

Tracking Your Credit History By Mark Schug

Tracking Your Credit History By Mark Schug By Mark Schug Financial institutions (banks, savings and loan associations, credit unions, and consumer finance companies) are private, profit seeking businesses. They expect to be paid back most of the

More information

Understanding Your FICO Score

Understanding Your FICO Score Understanding Your FICO Score Contents Your FICO Score A Vital Part of Your Credit Health 1 How FICO Scores Help You 2 Your Credit Report The Basis of Your FICO Score 3 How FICO Scores Work 5 What a FICO

More information

Fun, engaging and effective. Aligned with national financial education and core curriculum requirements.

Fun, engaging and effective. Aligned with national financial education and core curriculum requirements. Building Your Financial Foundation Adult Level Curriculum - Instructors Guide Fun, engaging and effective. Aligned with national financial education and core curriculum requirements. Lessons on: Credit

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

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

Be Credit Wise Credit is a way of having something now and paying for it later. Many

Be Credit Wise Credit is a way of having something now and paying for it later. Many Be Credit Wise Credit is a way of having something now and paying for it later. Many of us want to take advantage of flexibility in our spending plans by using credit. Credit isn t free; it s paid for

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

YOUR CREDIT SCORE. Payment History - 35%

YOUR CREDIT SCORE. Payment History - 35% YOUR REDIT SORE Many of our clients are concerned about their ability to obtain credit in the future. There are several issues related to those concerns. redit reporting agencies (Experian, Equifax, and

More information

REVIEW.The Credit Process

REVIEW.The Credit Process REVIEW.The Credit Process Credit when goods, services, and/or money are received in exchange for a promise to pay back a definite sum of money at a future date. Wants to acquire an item Does not have enough

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

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 FICO Score

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

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

Credit Cards. and Your Credit Score

Credit Cards. and Your Credit Score Credit Cards and Your Credit Score Introduction Credit Cards and Your Credit Score Learning Objectives Lesson 1 Selecting a Credit Card: The Devil s in the Detail Identify and explain the costs and terms

More information

JUST BEGINNING. Your financial life is. I m Buying a Car!

JUST BEGINNING. Your financial life is. I m Buying a Car! Your financial life is JUST BEGINNING. The decisions you make now will put a steering wheel and a credit card in your hands. But they will also affect your financial future. Your choices may even prevent

More information

Why Credit is Important

Why Credit is Important Page 1 Why Credit is Important Page 6 How to Protect Yourself from Identity Theft Page 7 Cosigning and Money Lending Tips Page 8 How to Avoid Credit Card Interest Why Credit is Important Learning to build

More information

Understanding Credit BY Sallie Mae and FICO

Understanding Credit BY Sallie Mae and FICO Understanding Credit BY Sallie Mae and FICO Lisa Mitchell, Sallie Mae Brad Riebel, Sallie Mae April 2015 Session Focus Overview FICO and Sallie Mae partnership on ways to help students understand why credit

More information

FICO Score Factors Guide

FICO Score Factors Guide Key score factors explain the top factors that affected your FICO Score. The order in which your FICO Score factors are listed is important. The first indicates the area that most affected your FICO Score

More information

Building a CREDIT REPORT. Federal Trade Commission consumer.ftc.gov

Building a CREDIT REPORT. Federal Trade Commission consumer.ftc.gov Building a CREDIT REPORT Federal Trade Commission consumer.ftc.gov Shopping for a car? Applying for a job? Looking for a home? Getting your financial house in order? It s time to check your credit report.

More information

CREDIT BASICS About your credit score

CREDIT BASICS About your credit score CREDIT BASICS About your credit score Your credit score influences the credit that s available to you and the terms (interest rate, etc.) that lenders offer you. It s a vital part of your credit health.

More information

IMPORTANCE OF CREDIT HISTORY AND SUCCESSFUL SAVING

IMPORTANCE OF CREDIT HISTORY AND SUCCESSFUL SAVING IMPORTANCE OF CREDIT HISTORY AND SUCCESSFUL SAVING From America Saves and Experian WHAT IS A CREDIT REPORT AND SCORE? A credit score is a three digit number that measures how likely you are to repay a

More information

Do You Make These Money Mistakes?

Do You Make These Money Mistakes? Do You Make These Money Mistakes? By Leo J. Quinn, Jr. How to Own Your Paycheck Again Copyright 2009 Leo J. Quinn, Jr. LLC This publication is not intended for use as a source of legal, accounting, credit

More information

Hofstra North Shore-LIJ School of Medicine. Office of Financial Aid

Hofstra North Shore-LIJ School of Medicine. Office of Financial Aid Hofstra North Shore-LIJ School of Medicine Office of Financial Aid Consumer Credit and Your Credit Report Joseph M. Nicolini, MHA Director of Financial Aid What We Will Cover Consumer credit and credit

More information

Brought to you by PEPCO FCU. Seminar objectives

Brought to you by PEPCO FCU. Seminar objectives Take Charge: Wise Use of Credit Cards Brought to you by PEPCO FCU Seminar objectives Learn: Benefits and costs of credit cards How to build a good credit history Warning signs of too much debt How to figure

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

Gray 10% = New Credit Blue 10% = Type of Credit Used Gold 15 % = Length of Credit History Green 30% = Amount Owed Brown 35% = Payment History

Gray 10% = New Credit Blue 10% = Type of Credit Used Gold 15 % = Length of Credit History Green 30% = Amount Owed Brown 35% = Payment History UCREDIT SCORE UWhat is a Credit Score? Rating used to predict the risk a lender assumes in granting you credit How likely you are to make your payments on time in the next two to three years Based on a

More information

Max Out Your Credit Knowledge

Max Out Your Credit Knowledge Max Out Your Credit Knowledge Sponsored by Elevations Credit Union October 27 th, 1014 Presented by Laura Zavala & Lauren Barbary Agenda What is Credit? What Composes My Credit Score? Bankruptcy Impact!

More information

CREDIT IN A NEW COUNTRY:

CREDIT IN A NEW COUNTRY: CREDIT IN A NEW COUNTRY: A GUIDE TO CREDIT IN CANADA A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management

More information

Understanding your Credit. Presented by:

Understanding your Credit. Presented by: Understanding your Credit Presented by: FICO Scores What is a FICO Score? What is a FICO Score? Simply stated a FICO Score is your financial photograph that is viewed every time you are in the market for

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

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

Reason Statement Full Description Actions You Can Take or Keep this in mind

Reason Statement Full Description Actions You Can Take or Keep this in mind Factors Guide - Experian The consumer-friendly reason descriptions and actions a consumer can take (or things to keep ) below are provided for use within your FICO Open Access customer displays. The table

More information