1. The 5 C’s of Credit By:Sierrah, Thorn, Madison and Amber

2. The 5 cs of credit ●Character refers to a borrower's reputation, their educational background and experience in business and in your industry will be considered. ●Capacity How you intend to repay the loan. ●Capital the money you personally have invested in the business. ●Collateral additional forms of security you can provide the lender. ●Conditions the intended purpose of the loan.

3. What is your credit score and how is it calculated ●A credit score is a three digit number calculated from your data-rich credit report and is one factor used by lenders to determine your creditworthiness for a mortgage, loan or credit card. ●Your credit score is calculated from several different pieces of credit data in your credit report. Your payment history, amounts owed, length of credit history, new credit, and type of credit used.

4. How does _____ affect your credit score? ●Payoff history- paying off an installment loan, such as your student loan, car loan or mortgage, early won’t hurt your credit score. ●you could be missing out on some chances to improve your score when you pay off an installment loan early. \ ●By keeping your installment account open, you have the chance to take advantage building your credit history with a longer positive payment history, as well as building a longer average length of credit history. ●Bankruptcy- Although creditors don’t like to see a bankruptcy on your credit report, the damage it will do to your credit score depends, in large part, on how good your credit was before you filed. ●If you are delinquent on many accounts and your debt-to-asset ratio is high (meaning you have lots of debts and few assets), your credit is already in the tank. ●If you file for bankruptcy, your score will take a modest dip, but it won’t take a huge plunge.

5. ●Collections- If you have an account reported as in collections, your credit score may drop by a substantial amount. ●The degree to which a collection hurts your credit score is generally correlated with how high your credit score is when the collection agency reports the debt. ●The higher your score, the more points you can lose. ●Amount owed vs. available credit-Since your credit score is basically a measure of your likelihood of paying back a loan, missed payments or late payments are signals that you might not be as likely to pay back a loan and for that reason they hurt your credit score. ●If you don't pay the full balance off the first month, you could end up paying far more then the initial 10% savings. Opening unnecessary accounts can backfire when you need to make a big purchase and find that your score has dropped causing you to no longer qualify for the best rates. How does _____ affect your credit score?

6. How does _____ affect your credit score? ● Closed Accounts- Before you close any accounts, you should first evaluate how many accounts you have, what they are costing you, what you use them for, and how they may affect your credit score. credit score ●Closing an account may save you money in annual fees, or reduce the risk of fraud on those accounts, but closing the wrong accounts could actually harm your credit score. ●The types of credit used- ●10% of your credit score is based on how many total accounts you have in these categories such as credit cards, store accounts, installment loans and mortgages ● Inquiries- There are two kinds of inquiries that can occur on your credit report: ● Hard inquiries and soft inquiries. Hard inquiries generally occur when a financial institution, such as a lender or credit card issuer, checks your credit report when making a lending decision. They commonly take place when a consumer applies for a loan, credit card or mortgage, and you typically have to authorize them. ●Soft inquiries typically occur when a person or company, such as a potential employer, checks your credit report as part of a background check, when you are "pre-approved" for credit card offers and when you check your own credit score. A soft inquiry may occur without your permission. Soft inquiries may be recorded in your credit report, depending on the credit bureau, but they won't affect your credit score in any way.

7. How would a person manage/improve their credit score ●Get copies of your credit score ●Dispute a credit report error ●Avoid new credit purchase ●pay off a past due balances ●Avoid new credit card applications ●Leave accounts open, especially those with balances ●make contact with your creditors ●pay off a debt ●get professional help ●be patient and persistent

8. Applying for credit/loans 5 steps to apply for a bank loan 1.understand your preference 2.Ask questions 3.Know your limitations 4.Create a checklist/ documentation 5.Have the right expectations How to apply for credit 4 tips 1.Get your finances in shape 2.Don't apply for too many cards at once 3.Lower your debt utilization ratio 4.Set your sights on the right credit cards

9. Equal Credit Opportunity Act Prohibits creditors from discriminating against credit applicants because of their of race, color, religion, national origin, sex, marital status, and age.

10. What to do if you are denied credit? ●Ask before you use the credit. ●Ask for reasons when the creditor changes your existing credit terms. ●Get your credit report ●Ask for an explanation

11. Credit Bureau ●Are agencies that collect and maintain individual credit information, that they get from banks and other businesses and sell it to lenders, creditors, and consumers in the form of a credit report.

12. Sources http://blog.readyforzero.com/does-paying-off-a-loan-early-hurt-your-credit-score/ http://www.nolo.com/legal-encyclopedia/bankruptcy-credit-faq.html https://www.creditkarma.com/article/accounts-in-collections http://blog.readyforzero.com/how-does-credit-card-debt-affect-you-credit-score/ http://www.myfico.com/crediteducation/questions/credit-cards-credit-score.aspx http://www.transunion.com/personal-credit/credit-reports/closing-accounts-and-your-credit-score.page https://www.creditkarma.com/article/hard_inquiries_and_soft_inquiries http://www.investopedia.com/articles/pf/10/credit-score-factors.asp http://www.forbes.com/sites/investopedia/2013/07/03/5-tips-for-getting-your-bank-loan-approved/ http://www.creditloan.com/ http://www.nerdwallet.com/blog/tips/apply-for-a-credit-card/ http://www.creditcards.com/credit-card-news/how-not-to-get-rejected-for-new-credit-card-1267.php