Understanding Your Credit Score By Your Name Company Telephone Number & URL Logo Enter your company tag line here

A 3-digit number used by lenders to evaluate the risk associated with lending you money It is generated by a mathematical model created by Fair Isaac & Company in the 1950’s. There are 3 Major Credit Bureaus, Equifax, Experian and Trans Union –You have 3 Scores Scores range from What is a Credit Score?

Above 740 = Excellent 680 =Good 620 =Fair Below 620 =Poor What is a Good Score?

The Cost of a Low Score Lost Opportunity Humiliation Employment Auto Loans Education Loans Business Ownership Checking Account Medical Credit Cards Renting an Apartment Utilities Insurance Rates & Options Less or No Retirement Savings

The Cost of a Low Score & Mortgage Never Owning a Home At All, Again, or For Years Higher Interest Rates Loan Level Price Adjustment Fees Higher PMI No HELOC Higher HELOC Interest Rates Today, on a $300, Year Fixed Home Loan, a borrower who increases his or her credit score from 620 to 740+ can potentially save $ per month on mortgage payments, $00, per year, and approximately $ over the life of the loan.

Payment History Late Pays Collections Charge-Offs Repossessions Foreclosures Tax Liens BK’s Judgments Amounts Owed Credit Cards Mortgage Loans Auto Loans HELOC’s Installment Loans Types of Credit Used A Mortgage Loan An Auto Loan 2-3 Major Credit Cards New Credit Soft Inquiries Hard Inquiries Length of History Time since account Opened and Time since account activity Five Factors of Credit Scoring

 A recent 30-day late can cost you points  Paying a collection that is more than 2 years old can hurt your score  Being past due on an account can cost you 50+ points  Derogatory accounts do NOT fall off of your report automatically after 7 years. You must dispute them.  A divorce decree does NOT take precedence over the creditor agreement WHAT YOU SHOULD KNOW Payment History – 35%

 New debt temporarily decreases the score  Keep balances below 50% at all times to maintain your score  Keep Credit Card Balances below 30% of the limit 3-6 months prior to applying for a home loan  Don’t consolidate debt. Share outstanding debt evenly among your cards  If you go over the limit on your credit card even by $1, it will cause a serious penalty  HELOC’s can be considered revolving debt, not mortgage  Do not close credit cards except in certain circumstances  USE YOUR CREDIT CARDS or they will become unrated in 3 months Amounts Owed – 30% WHAT YOU SHOULD KNOW

 Hold onto old credit cards, even if the rate is not great  New credit users can add themselves to another person’s credit card as an authorized user to generate a score  Mixture is best  The type of credit card DOES matter  2-3 revolving credit cards is optimal with established credit history  AKA’s and Multiple Addresses bring scores down Type of Credit Used – 10% Length of Credit History – 15% WHAT YOU SHOULD KNOW

 Soft vs. Hard Inquiries  30 Day Window for pulling your reports  Inquiries affect the score for one year  Inquiries can cost between 2 and 25+ points on the score depending on your current score  You are Pre-Approved means you are NOT pre-approved New Credit (Inquiries) – 10% WHAT YOU SHOULD KNOW

Step 1 - Order Your Credit Reports & Scores The first step is to have a complete picture of your current credit situation by ordering your credit report and score for all three national credit bureaus, TransUnion, Equifax and Experian. Step 2 - Verify the Data Being Reported It is the consumer's responsibility to verify that the data being reported is accurate. Step 3- Dispute the Inaccurately Reported Information Contact your creditors and send letters of dispute to the credit bureaus to have errors on your credit report corrected. SEND CERTIFIED. Start Improving Your Scores Now

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