What Does it Mean?. Predicts the statistical chance of a consumer becoming 90 days late or more on a particular loan obligation Each score is specific.

Slides:

Advertisements

Similar presentations

Your Name – Your Business Helping People Improve & Protect Their Credit Credit Concepts I.

Advertisements

RAISE YOUR CREDIT SCORE 100 POINTS IN FORTY-FIVE DAYS Edward Jamison, Jamison Law Group Barry Habib and Sue Woodard,Mortgage Market Guide *Amy Bonis.

RAISE YOUR CREDIT SCORE 100 POINTS IN FORTY-FIVE DAYS Edward Jamison, Jamison Law Group Barry Habib and Sue Woodard, Mortgage Market Guide.

March 29, 2011 Dale Ball, eni. Understanding how credit scores are determined. Understanding how consumers actions impact their credit scores.

Lesson 9 Fixing Your Credit.

By Your Name Your Company Name Date Your Credit Score.

Credit History Credit Scoring Lenders Require a Three bureau merged Report – Experian, Trans Union, Equifax Alternative Credit – Rental History Credit.

Good Credit is an Asset. Agenda Your Financial Foot Print Good Credit Poor Credit Student Loans Housing and Credit.

What is your gut reaction to these words? Credit cards Debt Bankruptcy.

RAISE YOUR CREDIT SCORE 50 POINTS IN FORTY-FIVE DAYS Bruce Gustafson (303) Crestline/Universal Lending.

A person or company to whom a debt is owed.

WHAT IS A CREDIT SCORE? A credit score is a number that helps a lender predict how likely an individual is to repay a loan, or make credit payments on.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

Credit You're in Charge What is Credit ??? Credit is an arrangement to Receive cash, goods, or services now and pay for them in the future!

Credit Scoring and Scorecard Lending LESE 306 Fall 2008.

Credit Scoring and Scorecard Lending Agribusiness Finance LESE 306 Fall 2008.

Credit Scores and Scorecard Lending AGEC 489/690 Spring 2009 Slide Show #12.

Raising Your Credit Score

CREDIT HISTORY & SCORES. CREDIT REPORTS  aka: credit history  3 Credit Bureaus receive and maintain information on consumers: Experian, TransUnion,

How to Improve Your Credit Score FICO ©2012, TESCCC Economics Unit 5, Lesson 2.

© 2006 Consumer Jungle Credit Scores & Reports. Learning Target I can explain what can affect my credit score and how to improve it. © 2006 Consumer Jungle.

To Your Credit 1. 2 Introduction Instructor and student introductions. Module overview.

CREDIT How do you build credit? Mr. Jones and Mrs. Smith make the same amount of money, but on loans, Mr. Jones pays more. Why? What may determine if you.

Forbes.com. Make payments as early as possible. Late payments will negatively impact your FICO score. The longer you pay your bills on time, the better.

Manage Debts It is more important than savings/investments!

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

TOP 26 “Myth-Conceptions” of Credit. Myth #1: You share a credit score with your spouse.

© 2006 Consumer Jungle Credit Scores & Reports. Are you Creditworthy? Have you ever borrowed money? Did you pay it back? Did you pay it back quickly?

1. Credit During the “Crunch” How to Thrive while others are trying to Survive!

To Your Credit 1. 2 Purpose To Your Credit will: Show you how to read a credit report. Help you build and repair your credit history.

What do they mean? Lazer Avtzon FICO Scoring Expert Phone: Fax:

Credit Scoring … Protecting Your Future and your Capital.

Credit Reports Take Notes. Cost of CarInterest Rate# of PaymentsMonthly Payment $ 25, %60($438.19) $ 25, %60($460.41) $ 25, %60($483.32)

Credit Reports How to improve your score, and help members to do the same.

2 What Does it Mean? Determine how much money you can borrow, and how much interest you’ll pay. Each score is specific for each bureau Scores range from…

Why Paying off Collectors may be Severely Damaging Your credit DELETE ( )

1. Open a savings account. Parents may be asked to cosign if minor 2. Open a checking account - Provides convenient method of paying bills 3. Open a.

Play the game of credit to better meet your personal and financial goals. Credit Scoring & Wealth the Game Carl Spiteri 6333 Greenwich Dr. Suite 200 San.

FIXING Your Credit Objectives: Understanding how credit scores are determined. Understanding how consumers actions impact their credit scores.

Your Credit Rating Credit Scores Explained. What is a credit score and what is it designed to do? FICO score FICO score Summary of one’s credit worthiness.

Presented By: Mick Bernard – President & Founder Twitter.com/911CreditPro Facebook.com/CreditStrategies

How to Improve Your Credit Score FICO ©2012, TESCCC Economics Unit 5, Lesson 2.

Credit Scores and Credit Reports- Knowing and Understanding How the System Works Steve Calem, MBA, CMPS President Capital Funding Group Office:

Credit Score Based on the articles, “How Credit Scores Work; How a Score is Calculate?” and “Managing Your Credit Score” from Personal Finance Literacy,

What’s a Credit Report? From age 18 on, agencies collect data about your spending habits. Monitor your ability to handle risks (i.e. loans I installment.

CREDIT HISTORY & SCORES. CREDIT REPORTS  aka: credit history  3 Credit Bureaus receive and maintain information on consumers: Experian, TransUnion,

1.  Three credit reporting bureaus:  Equifax  Trans Union  Experian  Information is not shared among bureaus unless required by law.  Not all creditors.

1To Your Credit Objectives By the end of this unit, you will be able to: Describe the purpose of a credit report and how it is used. Describe the purpose.

Making the Most of Your Credit An Advantis Credit Union Better Together Workshop.

FICO Your Credit Score FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.

Understanding Your CREDIT REPORT AND SCORE PRESENTED BY GREENPATH Sally Counselor Certified Consumer Credit Counselor.

LenderSelect Mortgage Group The Benefits of Buying

Credit Scoring and Scorecard Lending

The CREDIT SCORE “Classic FICO”.

Unlocking the Power of Credit

Your Credit Score And why it matters .

By Your Name Company Telephone Number & URL

Credit scores & Creditworthiness

CREDIT BUREAU A credit bureau is a private company that gathers account information from various creditors and provides that information to consumer reporting.

Mr. Rosenstock Economics San Fernando High School

CREDIT BUREAU A credit bureau is a private company that gathers account information from various creditors and provides that information to consumer reporting.

How to Improve Your Credit Score

YOUR MONEY, YOUR FUTURE GAME OF LOANS

Collections will Severely Damage your Credit Scores

MoneyCounts: A Financial Literacy Series

MoneyCounts: A Financial Literacy Series

Build Your CREDIT = Build Your ASSET

Credit Reports and Credit Scores

Workshop Goal Learning Objectives

Presentation transcript:

What Does it Mean?

Predicts the statistical chance of a consumer becoming 90 days late or more on a particular loan obligation Each score is specific for each bureau Scores range from… “Fair Isaac ONLY” … 300 to 850 for Classic FICO “Fair Isaac ONLY” … The higher the score the less the odds of default The score is generated by analyzing the information contained in the consumer’s credit report at THAT point in time The score is generated by analyzing the information contained in the consumer’s credit report at THAT point in time What Does The Score Mean?

Consumer Default: What are the Odds?

Score Odds Above to to to to to to to 1 Below to 1

FICO Score APR Rate Monthly Payment Interest Paid % $499, % $567, % $637, % $770, % $871, % $1,066,352 Compare 30 yr fixed rates on a $500,000 home

SAMLARRY Salary Equal Credit Score Yearly Savings $14,2880 Interest Saved over 30 Years $428, % return on savings compounded total in 30 yrs. $ 2,476,911 $0

Credit Score Components 1.Payment History 2.Debt Ratio 3.Average Age of File 4.Credit Mixture 5.Inquiries

1. Past Delinquencies… 35% of Credit Score Credit Score

 Timing of the delinquency  Level of Delinquency  Last activity date  Past Due Notices destroy scores  Missed payments (low vs. high)  Pay-off collections in Escrow NOT before (Catch 22, can go either way )

Delinquencies on Credit Reports Bankruptcies Bankruptcies … Chapter 7 & Years from filing date … Chapter 7 & Years from filing date … Chapter 13 7 Years from filing date … Chapter 13 7 Years from filing date Tax Liens*7 Years from date satisfied Tax Liens*7 Years from date satisfied Late Payments7 Years Late Payments7 Years Charge-offs7 1/2 Years from 1st late pay Charge-offs7 1/2 Years from 1st late pay Judgments 7 Years or S.O.L. Judgments 7 Years or S.O.L. Inquiries2 Years Inquiries2 Years

2. Revolving Debt Ratio 30% of Credit Score Credit Score

 Cards: …Share debt among many cards …Use each every 6 months …Do not close credit cards …Pay-off before closing date …Get added as an authorizer user

 Credit …Ask for credit limit increases Limit…Maintain balances below 10% Limit…Maintain balances below 10% …Make sure the limit is reported

 Spouse: …Keep credit separate from spouse …Transfer debt to one spouse

3. Average Age of Credit File… 15% of Credit Score

 The longer the history, the better  Hold onto old credit cards  Piggyback off Mom to get history

4. The Mix of Credit … 10% of Credit Score Credit Score

 A mixture is best  3 to 5 revolving credit cards  A mortgage account  Auto loan  Equity lines of credit

5. Inquiries … 10% of Credit Score Credit Score

 Inquiries affect the score for 1 year  Inquiries can cost 0 – 50 points  Score is only reduced for 1st 10 inquiries  Auto & mortgage inquiries … have a 30 day buffer period … within a 45 day period are treated as 1  Many inquiries don’t count … personal … personal … promotional & job related … insurance & account reviews