1. Understanding the Importance of Credit in Today’s Economy Presented by ComPsych® Corporation

2. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 2 Objectives  Understand what credit is and the various factors that affect your credit score  Learn what steps to take to improve your credit score  Recognize the costs associated with poor credit  Learn what information is included on a credit report and how to read your credit report  Steps To Help Prevent Identity Theft

3. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 3 Credit is King, or Queen, in Today’s Economy  In today’s economy the importance of good credit is vital  People with good credit have many more options than people who don’t  It affects your rates and the total cost you pay for loans

4. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 4 What is Credit?  Credit is your reputation as a borrower  Credit encompasses any form of deferred payment  Credit is specific to you

5. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 5 What is Credit Scoring?  A system which estimates an individual's creditworthiness and ability to repay financial obligations  Score is based upon information that each credit bureau keeps on you  FICO scores range from 300 – 850  Good credit now considered a score above 730

6. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 6 Factors That Affect Your Credit Score  Payment History = 35%  Amounts Owed = 30%  Length of Credit History = 15%  New Credit = 10%  Type of Credit = 10%

7. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 7 Factors That Don’t Affect Your Credit Score  Race, color, religion, national origin, sex or marital status  Age  Occupation, salary, title, employment history or dates employed  Where you live  Promotional inquiries, account review inquiries, insurance inquiries, employment inquiries

8. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 8 How To Establish Credit / Improve Your Credit Score If You Are Establishing Credit –  Open a bank account  Apply for credit through bank or get a secured credit card  Get a gasoline or store card If You Are Trying to Improve Your Score –  Check your credit report and resolve any outstanding negative entries on your credit report  Make sure you pay your bills on time  Pay down outstanding debts

9. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 9 The Importance of Regularly Requesting Your Credit Report  To help guard against identity theft  Identify and correct credit report errors  Minimize chances that credit can negatively affect chance of obtaining financing

10. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 10 Understanding the Information on Your Credit Report The Sections of a Credit Report –  Personal / Identifying Information  Credit History  Public Records  Inquiries

11. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 11 Disputing Information on Your Credit Report  Contact the credit bureau regarding the incorrect information  Write a letter to the credit bureau explaining why you are disputing the information  Also notify the creditor, in writing, that you are disputing information  Credit reporting company must investigate – usually within 30 days  Information proven incorrect must be removed by credit bureau  Include a Statement of Dispute in credit report if dispute is unresolved

12. Copyright © 2013 ComPsych Corporation. All rights reserved. This document is the confidential and proprietary information of ComPsych Corporation. 12 Steps To Help Prevent Identity Theft  Check your credit report at least once a year  Shred personal information  Be careful with who you share your Social Security number  Install proper security on your computer  Create secure passwords  Limit whose “eyes” can see your credit or debit card number

13. When to Seek Additional Help ComPsych counselors are qualified to help you understand the importance of credit in today’s economy. There are additional resources for credit management on www.guidanceresources.com www.guidanceresources.com Check it out! Call ComPsych ® GuidanceResources ® Available 24 hours a day, 7 days a week!