FICO Scores. John Meeks Federal Deposit Insurance Corporation

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "FICO Scores. John Meeks Federal Deposit Insurance Corporation"

Transcription

1 FICO Scores John Meeks Federal Deposit Insurance Corporation

2 What is your most valuable asset? Frank Abagnale of Catch Me if You Can fame once remarked that if you don t own a house it is most likely your credit score!

3 The Cost of Lower Credit Scores $250K 30 yr fixed mortgage as of 5/10/2011 FICO Range APR% Mo. Paymt Life of loan cost $1, $1,279 $11, $1,305 $21, $1,338 $33, $1,404 $56, $1,491 $88,200

4 What is a FICO Score? Ø A measure of risk in lending Ø Developed by the Fair Isaac and Co. Ø The three major credit reporting agencies have their own names: Equifax = BEACON Score Experian = Experian/Fair Isaac TransUnion = EMPIRICA

5 Score Range FICO scoring ranges from 300 to 850. (VantageScore was developed by the three major credit reporting agencies to provide consistency in scoring and it scores from 501 to 990.)

6 FICO Score Distribution skewed to high end of the scale

7 FICO Score Distribution skewed to high end of the scale The average score is 687 but the median score is 723 half the population have a 723 or better.

8 Demographic Differences Age

9 Demographic Differences Race Missouri Dept of Insurance study Comparing credit scores by zip code found minority neighborhoods averaged scores in 17 th percentile (about 550) while nonminority neighborhoods averaged in 57 th percentile (about 700). Texas Department of Insurance study African-Americans and Hispanics made up 60% of worst scores and only 10% of best scores.

10 Lower scores (or no score) mean fewer credit opportunities and more dependence on predatory lenders!

11 Delinquency Rates Credit Score exist because they accurately predict delinquency rates Delinquency Rate by FICO Score Range: % % % % % % % %

12

13 Delinquency Rate by FICO Score Range: % % % % % (723 median) 5% % %

14 FICO Factors Weighting

15 FICO Factors Weighting Payment History 35% Account payment information Bankruptcy, judgments, suits, collections activity Severity of delinquency Amount past due or in collection Recency of past due items Number of past due items Number of accounts paid as agreed

16 FICO Factors Weighting Amounts Owed 30% Amounts owing on accounts Amounts owed on specific account types Number of accounts with balances Proportion of credit lines used Proportion of installment loan amounts still owning

17 FICO Factors Weighting Length of Credit History 15% Time since accounts opened Time since accounts opened by account type Time since account activity

18 FICO Factors Weighting Type of Credit Used 10% Number of (presence, prevalence and recent information on) various account types credit card, retail, installment, mortage, consumer finance

19 FICO Factors Weighting New Credit 10% Number and proportion of recently opened accounts, by account type Number and time of recent credit inquiries Time since recent account openings, by account types Re-establishment of positive credit history following past payment problems

20 Everyone is different The importance of any factor depends on the overall information in your credit report. For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your FICO score. Thus, it's impossible to say exactly how important any single factor is in determining your score - even the levels of importance shown here are for the general population, and will be different for different credit profiles. What's important is the mix of information, which varies from person to person, and for any one person over time.

21 Bad Credit Data Credit Score Points Deduction If you are a: Maxed out credit card day late payment Debt Settlement Foreclosure Bankruptcy

22 FICO 08 Scoring Changes (not all lenders have adopted the new model) Minor one-time delinquencies ignored Small (under $100) collection actions ignored Delinquencies more than 2 years old stressed less High credit utilization a greater factor Credit piggybackers weeded out authorized users on account only to inflate their credit score

23 Tips Best way to get and keep good credit scores is to pay your bills on time. Have a variety of credit types, but don t get credit that will be abused. Keep your ratio of credit availability to credit use at about 35%. Check your credit reports every year

24 Thank you John Meeks x4915

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

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

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

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

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

$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

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

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

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

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

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

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

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

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

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

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

PA HealthCare Credit Union. The Credit Clinic. The PA HealthCare Credit Union contributes to the financial success of our members.

PA HealthCare Credit Union. The Credit Clinic. The PA HealthCare Credit Union contributes to the financial success of our members. PA HealthCare Credit Union The Credit Clinic The PA HealthCare Credit Union contributes to the financial success of our members. 1 Copyright 2006 Agenda Welcome & Introduction Overview Product Rate Credit

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 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

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

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 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

Understanding Credit Scoring

Understanding Credit Scoring The Ultimate Guide to Understanding Credit Scoring www. Table of Contents The Basics Of Credit Scoring...3 5 Factors That Make Up A Credit Score...4 Rate Shopping...6 Late Payments...7 Common Credit Myths...8

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

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

FICO Score Factors Guide - TransUnion

FICO Score Factors Guide - TransUnion Factors Guide - TransUnion The consumer-friendly reason descriptions and things to keep in mind below are provided for use within FICO Open Access customer displays. The table includes a reason description

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

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

The Truth About Credit Repair

The Truth About Credit Repair The Truth About Credit Repair Discover The Insider Secrets Of How The Credit System Really Works and How To Beat The Credit Bureaus At Their Own Game. David Shapiro Esq. Applied Credit Repair Solutions

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

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

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

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

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

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

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 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

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

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

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 Score. Each year, you are able to request one free credit report from all three major credit

Credit Score. Each year, you are able to request one free credit report from all three major credit Myers 1 Ashley Myers Malory Klocke Concept Essay Credit Score Each year, you are able to request one free credit report from all three major credit reporting agencies: TransUnion, Equifax, and Experian.

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

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

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

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

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

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

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

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

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

The nuts and bolts of consumer and business credit reporting

The nuts and bolts of consumer and business credit reporting The nuts and bolts of consumer and business credit reporting Making sure your personal credit report doesn t cause a credit breakdown for your small business 2014 Experian Information Solutions, Inc. All

More information

A.MORTGAGE LENDER B. CREDIT CARD ISSUER C.HOME INSURER E. ELECTRIC COMPANY F. LANDLORD G.ALL OF THE ABOVE D.CELL PHONE COMPANY

A.MORTGAGE LENDER B. CREDIT CARD ISSUER C.HOME INSURER E. ELECTRIC COMPANY F. LANDLORD G.ALL OF THE ABOVE D.CELL PHONE COMPANY 1. WHICH OF THE FOLLOWING MIGHT USE CREDIT SCORES? A.MORTGAGE LENDER B. CREDIT CARD ISSUER C.HOME INSURER E. ELECTRIC COMPANY F. LANDLORD G.ALL OF THE ABOVE D.CELL PHONE COMPANY 1. WHICH OF THE FOLLOWING

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

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 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

Clearing Up the Confusion

Clearing Up the Confusion Credit Scores Credit Reports & Insurance Scores: Credit Scores, Credit Reports & Insurance Scores: Clearing Up the Confusion Credit Scoring Scoring is based on the theory that a customer with a poor credit

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

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

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

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

Credit Reports and Scores

Credit Reports and Scores Credit Reports and Scores Advanced Level The Importance of a Credit History for Obtaining Credit Credit refers to borrowing. You have used credit if you receive money, goods, or services in exchange for

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

How to Check Your Credit Report

How to Check Your Credit Report How to Check Your Credit Report year. It s important to check your credit report at least once a year. There are three major credit bureaus (officially called credit reporting agencies): Equifax, Experian,

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

UNDERSTANDING YOUR CREDIT SCORE WHAT S THE BIG DEAL? WHAT MAKES UP YOUR CREDIT SCORE? WHAT S THE NEXT STEP?

UNDERSTANDING YOUR CREDIT SCORE WHAT S THE BIG DEAL? WHAT MAKES UP YOUR CREDIT SCORE? WHAT S THE NEXT STEP? UNDERSTANDING YOUR CREDIT SCORE WHAT S THE BIG DEAL? WHAT MAKES UP YOUR CREDIT SCORE? WHAT S THE NEXT STEP? SO WHAT S THE BIG DEAL? A credit score not only influences your homebuying potential, but is

More information

Countrywide Settlement FAQs

Countrywide Settlement FAQs The Tennessee Attorney General s settlement with Countrywide offers several options for borrowers. If you do not see the answer to your question here, please contact Countrywide toll free at (800) 669

More information

All About Credit Reports from A to Z

All About Credit Reports from A to Z All About Credit Reports from A to Z Adverse Action Notice A notice that you have been denied credit, employment, insurance, or other benefits based on information in a credit report. The notice should

More information

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. To Your Credit 2

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. To Your Credit 2 To Your Credit Welcome 1. Agenda 2. Ground Rules 3. Introductions To Your Credit 2 Objectives Define credit Explain why credit is important Describe the purpose of a credit report and how it is used Order

More information

FWA HSBC Financial Backpack Program

FWA HSBC Financial Backpack Program FWA HSBC Financial Backpack Program Understanding Credit All materials are on FWA.ORG Follow us on FACEBOOK Top Lessons Credit has many advantages and disadvantages Understand costs of credit: principal,

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

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

Credit Repair 101. Learn how to legally repair your own credit

Credit Repair 101. Learn how to legally repair your own credit Credit Repair 101 Learn how to legally repair your own credit The myth is, that you need to spend hundreds or even thousands of dollars with a large company to have your credit repaired. This is just not

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

IMPROVING YOUR CREDIT AND DEBT

IMPROVING YOUR CREDIT AND DEBT IMPROVING YOUR CREDIT AND DEBT The Credit & Debt Problem Americans are loaded with credit-card debt. The average American household with at least one credit card has nearly $15,950 in credit-card debt

More information

Build a Strong Credit History. Brought to you by The New York University Federal Credit Union

Build a Strong Credit History. Brought to you by The New York University Federal Credit Union Build a Strong Credit History Brought to you by The New York University Federal Credit Union Seminar Objectives Learn: Who needs to build good credit, and why Significance of credit report and score How

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

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 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

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

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

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

The Importance of Good Credit

The Importance of Good Credit The Importance of Good Credit 1 Introduction The importance of good credit What is credit? The importance of credit history when applying for a loan How to build and maintain good credit Credit and its

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

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 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

Assume the Role of Managing Your Credit Prudently and Watch Your Credit Score Improve July 2012

Assume the Role of Managing Your Credit Prudently and Watch Your Credit Score Improve July 2012 Assume the Role of Managing Your Credit Prudently and Watch Your Credit Score Improve July 2012 OVERVIEW The three numbers that make up a credit score have become an obsession to some people. But what

More information

The Road to Good. How to Start Building Your credit with In-House Auto Financing

The Road to Good. How to Start Building Your credit with In-House Auto Financing The Road to Good Credit: How to Start Building Your credit with In-House Auto Financing I. Introduction II. What is a credit score? III. How credit scores are calculated Payment history Amount of debt

More information

Credit Scores. www.howtogainwealth.com. Copyright 2009 How to Gain Wealth. All rights reserved.

Credit Scores. www.howtogainwealth.com. Copyright 2009 How to Gain Wealth. All rights reserved. Credit Scores Why is my Credit Score important? Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses

More information

Volunteer Financial Coaching Credit Counseling Training Manual Updated 10/2014

Volunteer Financial Coaching Credit Counseling Training Manual Updated 10/2014 Volunteer Financial Coaching Credit Counseling Training Manual Updated 10/2014 Contents: Consumer Rights 1 The Credit Report 6 The Credit Cycle 10 Credit Scores...11 Helping Clients Improve their Credit.14

More information

February Office of Student Financial Management. Kasia Palm: Director of Student Financial Management

February Office of Student Financial Management. Kasia Palm: Director of Student Financial Management February 2016 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 payment

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

Insurance Score Models

Insurance Score Models Insurance Score Models Prepared by State of Alaska Division of Insurance Department of Community and Economic Development www.dced.state.ak.us/insurance (907) 465-2020 Insurance Score Models Some insurers

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

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

Understanding. What you need to know about the most widely used credit scores

Understanding. What you need to know about the most widely used credit scores Understanding What you need to know about the most widely used credit scores 300 850 2 The score lenders use. FICO Scores are the most widely used credit scores according to a recent CEB TowerGroup analyst

More information

How to Improve and Maintain your Credit Score

How to Improve and Maintain your Credit Score How to Improve and Maintain your Credit Score Special points of interest: Factors that influence your credit score How your credit score is calculated Improving your credit score How to fix flawed credit

More information

FICO Score Open Access Consumer Credit Education US Version. Frequently Asked Questions about FICO Scores

FICO Score Open Access Consumer Credit Education US Version. Frequently Asked Questions about FICO Scores FICO Score Open Access Consumer Credit Education US Version Frequently Asked Questions about Scores 2012 Fair Isaac Corporation. All rights reserved. 1 January 01, 2012 Table of Contents About Scores...

More information

A LESSON PLAN TO UNDERSTANDING. Credit Scores. Provided by

A LESSON PLAN TO UNDERSTANDING. Credit Scores. Provided by A LESSON PLAN TO UNDERSTANDING Credit Scores Provided by A LESSON PLAN TO UNDERSTANDING Credit Scores Provided by INTRODUCTION A credit score is a three-digit number derived from a mathematical interpretation

More information

How to Score on Credit Score?

How to Score on Credit Score? How to Score on Credit Score? Quick tips and ideas to improve your credit rating Powered by Table of Content What You Need to Know About Credit Scores Topics covered under this section are: 5 Myths About

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