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Understanding Your Credit Presented by Stephen McQueen, CPA, of the Financial Literacy Committee of the Colorado Society of CPAs.

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Presentation on theme: "Understanding Your Credit Presented by Stephen McQueen, CPA, of the Financial Literacy Committee of the Colorado Society of CPAs."— Presentation transcript:

1 Understanding Your Credit Presented by Stephen McQueen, CPA, of the Financial Literacy Committee of the Colorado Society of CPAs

2 Understanding Credit - Outline Homework Review Importance of Credit Report Sample Credit Report - Review Fixing Incorrect Info on Credit Report How is a Credit Score Developed FICO Score Ranges Improving Your Credit Score Go Forward with Credit Reports

3 One of my most prized assets is my good credit rating…Unknown - Homework Review - How many were able to run their report? Any hangups, issues? Any surprises, or inaccurate information?

4 Remember that credit is money…Benjamin Franklin - Importance of Credit Report - Who is using a credit report to evaluate us? When we dont have cash to buy something Cost of bad credit

5 No Mans Credit is Ever as Good as His Money…Edgar Watson Howe -Sample Credit Report – See Attached

6 The Creditor Hath a Better Memory than the Debtor…James Howell -Fixing Incorrect Info on Credit Report – Contact both bureau and credit grantor Dispute in writing Identify dispute, include copies of documents Send by certified mail, return receipt Process could take up to 90 days

7 Friendship, Like Credit, is Highest When it is not Used…Elbert Hubbard - How is a FICO Score Developed – (35%) Payment History (30%) Amounts Owed (15%) Length of Credit History (10%) New Credit (10%) Type of Credit Used What information in not included in FICO score?

8 The Surest Way to Establish Your Credit is to Work Yourself into the Position of Not Needing Any…Maurice Switzer -FICO (Fair Isaac Corporation) Score Ranges (300 – 499)Very Poor2% (500 – 599)Poor13% (600 – 670)Good12% (671 – 759)Very Good33% (760 – 850)Great40% 723 is the Median FICO score

9 Repairing Bad Credit is a Bit Like Losing Weight, it Takes Time and There is No Quick Fix…MyFicoScore.com -Improving Your Credit Score – Run your credit report, annually/consistently Set up payment reminders, and/or auto-pay Rate shop loans within focused period of time Dont open several new credit cards Pay bills on time Review statements regularly and carefully Keep list of card/bank account numbers Open different types of credit

10 Many a Man Thinks he is Buying Pleasure, When he is Really Selling Himself to it…Ben Franklin -Credit Repair Companies – Promises to repair credit and wipe out debt Choosing a credit counselor Can be a difficult process How do you determine if a counselor is reputable? Questions to ask atters/index.html

11 A Penny Earned is a Penny Saved…Benjamin Franklin -Go Forward with Credit Reports – Should run report 1/year, it is free Run all 3 together, or one every 4 months Equifax, Experian & TransUnion FICO score, credit monitoring Keep report safe

12 Questions/Comments?


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