1. a Improve YOUR CREDIT Welcome to MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Put bad credit Behind you © 2011

2. Rebuilding Good Credit MoneyWI$E A joint financial education project of Consumer Action and Capital One Services, Inc. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

3. By the end of the training you will understand: How poor credit can prevent you from doing certain things. That it is never too late to start to rebuild good credit. What information on a credit report is seen as negative. Some ways to improve one’s credit. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

4. About the Rebuilding Good Credit training There will be two sessions of two hours each. Each two-hour session will include a 15-minute break. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

5. In participants’ folders ‘Improve Your Credit’ (brochure) Evaluating Financial Services Ads (classroom activity) Debt Payments Worksheet (take-home) Are You Damaging Your Credit questionnaire (take-home) Compare Three Secured Credit Card Offers (classroom activity) Evaluation of the MoneyWI$E Rebuilding Good Credit Seminar MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

6. Rebuilding Good Credit Session One (Two hours) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

7. Welcome Let’s introduce ourselves. What do you hope to get out of this training? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

8. ‘Improve Your Credit’ A MoneyWI$E brochure Look in your folder for the brochure titled ‘Improve Your Credit.’ Take a couple minutes to review the brochure MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

9. Damaged credit What does bad credit mean to you? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

10. How can bad credit limit your life? Access to credit is essential for buying a home or financing a car. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

11. Poor credit may hinder your ability to: get a credit card. rent an apartment. start phone service. buy life insurance. get a job. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

12. How do you know if you have bad credit? Many people first realize they have credit problems when they are turned down for a loan, a job or a rental dwelling. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

13. How do companies know if you have bad credit? Information about your credit is kept by credit reporting bureaus. This information on file about you is called a credit report. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

14. It’s your right to see a copy of your credit report You can get a free copy of your credit reports from the 3 major reporting bureaus each year at: www.annualcreditreport.com It is also free if you’ve been turned down for credit. If not, there is a charge of about $10 per copy. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

15. What is a credit report? A record of your past and present loans and credit accounts. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

16. What’s in your credit report? Information about your past and current… credit cards mortgages car loans. −Your credit report has information about credit accounts you’ve had in the past seven years (or the past 10 years if you filed for bankruptcy). MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

17. Remember If you have been denied credit in the past 60 days, you can get a free copy of your credit report. You have the right to correct errors in your credit report. You can’t remove accurate information in your credit report. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

18. Credit reporting bureaus There are three major credit reporting bureaus: Equifax Experian TransUnion −The contact information for the credit bureaus is in your ‘Improve Your Credit’ brochure. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

19. Take a break Please come back in 15 minutes MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

20. Do credit repair companies help fix bad credit? Everything a credit repair company can do legally, you can do yourself Credit repair companies charge money −sometimes lots of money No one can legally remove accurate negative information from a credit report. If you decide to work with a company, research its offer carefully. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

21. Can you get a new, clean personal identity number? No. Companies that promise you a new Social Security or tax ID number are breaking the law. They tell you that you can apply for a special business tax identification number called an Employer Identification Number. Employer Identification Numbers are similar to Social Security Numbers, except they’re for businesses. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

22. Remember It’s a federal crime to make any false statements on a loan or credit application. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

23. Loan consolidation Can you consolidate all your loans together under a new loan? Debt consolidation loans could put you deeper into debt. Borrowing money from relatives or friends can be a great way to consolidate your debts. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

24. A home equity loan might be a solution If you are a homeowner and have equity in your home, you can take out a home equity loan. The interest may be tax deductible. Approach any loan secured by your home with caution. If you fail to repay the loan, you could lose your home. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

25. Let’s evaluate some ads Class activity Take out the activity sheet from your folders. Read the ads carefully. −Do you believe they offer a legitimate service? Jot down your reasons to share with the class. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

26. Evaluating ads for financial services Legitimate lenders never ‘guarantee’ that you can get a loan or a credit card. It’s against the law to ask you to pay for a loan before you are approved. Any promise to create a new identity is a scam. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

27. Remember Legitimate ads do not make outrageous, unbelievable claims. The Web sites that end in “.org” (DOT ORG) are owned by not-for- profit organizations. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

28. Remember ‘900’ numbers are a red flag for fraud When you call a ‘900’ number you will be charged a lot of money on your phone bill. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

29. Collection agencies If you don’t pay a debt, the company you owe money to might hire a collection agency. Collection agencies get a cut of the debts they collect. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

30. What should you do if a collection agency calls? Respond immediately if you don’t agree that you owe money. Ask the collection agency to prove that you owe the money. A collection agency can’t try to collect the debt while its validity is being checked out. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

31. The amount of the debt. The name of the original creditor. Notification that you have 30 days to dispute the debt. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

32. Stop hassling me! Legally, you can ask a collection agency to back off. Put it in writing. You are still responsible for paying legitimate debts. You may be losing an opportunity to explain your situation and resolve the debt. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

33. Can collection agencies call your neighbors? Collectors may contact any third party (such as your neighbor, relative or co- worker) only one time. They can only call to confirm or correct information about where you are. They can’t tell the third party that you owe a debt. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

34. Let’s wrap-up the first session Please read the ‘Improve Your Credit’ brochure before the next session. Next time we will go over secured credit cards, credit counseling, bankruptcy and how you can keep your credit in good shape. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

35. Here’s a helpful worksheet You’ll find a worksheet titled ‘Debt Payments Classroom Activity’ in your folders. It’s for you to take home and fill out in private. Attached to it you’ll find a questionnaire to help you assess your risk of damaged credit. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

36. Thank you... for taking part in the MoneyWI$E Rebuilding Good Credit training MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

37. Rebuilding Good Credit Session Two (two hours) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

38. Welcome It’s great to see you again. Have you had any thoughts about the first session that you’d like to share? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

39. Rebuilding Good Credit It’s never too late to start getting your credit back on track. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

40. How long will it take to rebuild good credit? It takes time and patience to establish good credit. Each person’s situation is different and lenders have wide- ranging requirements. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

41. How much damage has been done to your credit? A few late payments might be downplayed if you pay on time for several months. A default or bankruptcy may be more difficult to put behind you MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

42. Why should I even try? Access to credit is essential for: Buying a home. Financing a car. Poor credit may hinder your ability to: Get a credit card. Rent an apartment. Start phone service. Buy life insurance. Get a new job. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

43. What are some ways to rebuild good credit? Pay your existing credit accounts on time Poor Apply for a credit card or small loan from: Your bank. Your credit union. A local department store. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

44. Find a co-signer Ask a relative or friend with good credit to co-sign your credit application. After a year of good payments, you should receive credit card offers on your own. Make sure to close the co-signed account to absolve the co-signer of responsibility. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

45. Get a secured credit card Secured credit cards are backed by money you deposit and keep in a bank account. If you don’t pay off your credit card bill, the money in your account will be used to cover that debt. Even people with poor credit may be able to get a secured Visa or MasterCard. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

46. Get Secured credit cards can help you repair your credit. Make sure the credit card company will report your payments to credit bureaus. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

47. How you use your secured credit card is important. Show that you can handle credit responsibly by using your card to make a few purchases. Make all payments before the due date and pay your balance in full each month. After one year, apply for a regular, unsecured card. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

48. Credit limits on secured cards The maximum amount you can charge is usually equal to the amount of your deposit. Look for a card that will pay interest on your deposit. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

49. Secured card fees What’s reasonable? Secured cards always have annual fees. Avoid high up-front fees. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

50. Comparing secured credit card offers Class activity Here are three secured credit card offers. Decide which one seems like the best deal. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

51. Let’s talk about your conclusions Did your responses jibe with the conclusions on the back? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

52. Let’s take a break Please come back in 15 minutes. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

53. Credit counseling Credit counseling is a service that helps people get out of debt. Services offered Budgeting & money management. Debt management programs MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

54. Most credit counseling organizations … Negotiate directly with creditors on your behalf in order to lower interest rates and waive accumulated late fees. Find a credit counseling agency near you by calling 800-388-2227. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

55. Bankruptcy Before you consider filing bankruptcy: Try to work out payment programs with your creditors or; Enter a debt management counseling program. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

56. Two types of bankruptcy Chapter 7 (straight or liquidation bankruptcy) Chapter 13 (wage earner or repayment plan) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

57. Bankruptcy Remains on your credit report for 10 years. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

58. Sometimes bankruptcy cannot be avoided Common reasons that people declare bankruptcy Large medical bills. Seriously over-extended credit. Lack of adequate insurance after a catastrophe. Divorce and marital problems. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

59. You need an attorney to file bankruptcy Hiring an attorney protects your rights in bankruptcy court Make sure the attorney you retain is an expert in bankruptcy Don’t just look in the Yellow Pages to find an attorney MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

60. Keeping your good credit Review your credit report at least once a year. Potentially negative information on your credit report includes: Late payments on credit cards and loans. Unpaid debts. Bankruptcy. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

61. Credit fraud is on the rise Check your credit report carefully to ensure that: All the debts listed belong to you. A criminal hasn’t set up credit accounts under your name. If you find unauthorized or fraudulent activity, notify the credit bureaus right away. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

62. Good credit is about: Meeting your responsibilities. Not taking on more than you can handle. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

63. How you can protect your credit Order copies of your credit report once a year to check for errors. Pay your bills on time. Apply only for credit that you really need. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

64. Joint account liability If you divorce or separate, make sure that joint accounts are closed. You are liable for paying joint account transactions, no matter who makes the charges. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

65. Questions and Answers Let’s open the floor to questions. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

66. Wrap-up and evaluation Let’s talk about how this course compared with your expectations. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

67. Congratulations! You’ve completed the MoneyWI$E Rebuilding Good Credit training. Good luck! MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

68. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Visit money-wise.org for additional information and to access free financial education materials