1. Credit Concepts Helping People Improve & Protect Their Credit Your Name – Your Company

2. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Provide usable information to help you manage and protect your credit worthiness Learning Objectives Understand the Principles of Credit and Financing Learn How to Improve Your Credit Scores Learn How to Protect Your Credit & Identity Workshop Goal

3. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Credit Concepts Quiz  1. What is a good credit score for obtaining a mortgage?  2. How long can a collection remain on your credit report?  3. Credit card balances reduce your scores when the balance to credit limit is over what percentage?  4. What percent of credit reports contain serious errors resulting in denial of credit?  5. What is the leading method of identity theft?  6. What can you do to protect yourself from identity theft?

4. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert The 3 C’s of Financing CollateralCapacity Character* Before 1980: Assets Securing a Loan Income and Years of Employment Relationship With Banker After 1980: Assets Securing a Loan Debt to Income Ratio Credit Score *Character now relies on a consumer’s credit score and not a trust relationship.

5. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert The Cost of Bad Credit These figures are based on a mortgage loan of $100,000 for 30 years

6. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Your Credit Report  Credit Reporting Agencies –TransUnion, Equifax, Experian – all profit-making companies –Gather and sell data (credit reports) to the financial industry  Information in Your Credit Report –Personal Info, Trade Lines, Public Records & Collections –Hard Inquiries (Auto/Mtg. affect score as 1 in a 14-day period. Credit Cards count each time) Soft Inquiries (Pulling your own report, promo offers, current lender pulls do NOT impact score) –NOTE: 30% of all reports contain errors that result in credit denial –All positive and negative accounts report for 7 years from the date of last activity, excluding bankruptcies (10 yrs) and unpaid tax liens (15 yrs)

7. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert  FICO - Fair Isaac Corporation –Creates risk models used to generate a credit score. –Different risk models are used for different types of financing.  Key Factors of Your Credit Score –A third of your score is determined by your positive and/or negative credit history during the last 12 months. –Utilization Ratio (ratio of all revolving account balances to all revolving limits) – decreases scores if above 30%. [ ex: $300 balance/$1000 limit=30% ] –Inquiries. Rarely impacts score more than 10-15 points! Credit Scoring

8. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert How to Improve Credit Scores  Credit Restoration –Derogatory items disputed and not verified within 30 days must be deleted from the credit report (Fair Credit Reporting Act). –Typically, 4-6 months to remove 40%-60% of derogatory items and increase score 40-100 points. –Credit Restoration is NOT Credit Counseling. Credit Counseling ruins your score. Partial payments=late payments. Lenders view as Chapter 13  Establish Positive Credit –Open new trade lines (Secured Credit Cards & Installment Loans) –Pay on time with existing accounts – Last 12 months

9. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert  Nowhere to Hide! –The Average American is in at least 50 Databases () –The Average American is in at least 50 Databases (PC Magazine July ’04)  Types of Identity Theft –Department of Motor Vehicles – Obtaining a driver's license in your name. –Social Security - A person steals your SS # to gain employment. –Medical Information – Obtaining drugs or medical care in your name. –Criminal Identity - Someone impersonates you and commits a crime. –Financial Identity – Someone opens new or uses your existing accounts. Identity Theft

10. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Real Incidents. Real Threat  Medical Identity Theft Nearly Ruined a Good Mother’s Life. CBS News – 10/9/06. What Happened: A woman stole the driver’s ID of Anndorie Sachs, walked into a hospital, had a baby, and left. Victim Impacts:Authorities accused Sachs of being an unfit mother and threatened to take away her children. No one believed Sachs until she physically went and had her blood tested.  ID Theft Victim Battling Problems For A Decade. Eagle Tribune. – 3/21/07 Criminal Identity Theft What Happened: Darryl M. Landry used Daryl A. Landry’s identity to freely commit crimes. When abducting children, he had them call their parents, naming the innocent Daryl A. Landry as the culprit. Victim Impacts: The innocent Daryl has been fighting angry phone calls and arrest warrants for nine long years.  Cyberthieves Stole 1.3 Million Names from Monster. USA Today – 8/24/07 Financial Identity Theft What Happened: Thieves organized a massive operation that stole 1.3 million customer names & emails from Monster; they sent out an email that when clicked, allowed the thief to highjack the computer. Victim Impacts: Many people have lost and will lose personal information to thieves and will suffer identity theft.

11. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Protect Your Identity  Practice Good Mailbox Habits -Pick up immediately; use post office for outgoing mail  Shred or Burn Personal Documents  Place a Fraud Alert - Provided for up to 7 years at NO COST  Place a Security Freeze -$10 to place/$10 to lift; per bureau  Purchase Identity Theft Protection Plans -Monitoring Services- Notification is sent to alert the consumer of a new account - Restoration Services- Helping the consumer restore their credit and their name  Obtain Yearly Free Credit Report (www.annualcreditreport.com)

12. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Employers, You May be at Risk  The Problem: Businesses hold customer & employee personal info. By merely maintaining records, businesses are at risk for a DATA BREACH  The Law: Your business may not be in compliance with Federal and State Laws regarding the prevention of a data breach.  The Costs: Your business may not be prepared to mitigate costs in the event of data loss: legal fees, fines, and judgments. … What can you do?

13. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert The Solution Comply with Federal and State Laws   Draft a NPI/Data Breach Policy and regularly train employees   Implement a documentation method in case a data breach occurs   Designate an internal privacy expert for your company   Draft a discipline protocol for employees, to establish precedence. 1.) Gramm-Leach-Bliley Safeguard Act 2.) Fair and Accurate Credit Transactions Act

14. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Thank You For Your Time!  Opt in Form -Fill out top half of form to receive our newsletter -Fill out bottom half if you’d like to meet about any of the related topics.  QUIZ ANSWERS 1.(C.) 720 is a very good credit score. 970 is not possible 2.(B.) Collections remain on your report for 7 years after the date of last activity. 3.(B.) A utilization ratio over 30% reduces your score. 4.(C.) 30% of credit reports contain serious errors that result in the denial of credit. 5.(C) Computer hacking is the leading method of identity theft. 6.(A) (B) and (C). Only ID theft “by a family member” unless you file a police report.

15. Your Name – Your Company Helping People Improve & Protect Their Credit Credit Concepts

16. Helping people improve and protect their credit Credit Concepts Your Name – Credit Expert Your Logo Sample Presentation Format  Sample –Sample

17. Your Name – Your Company Helping People Improve & Protect Their Credit Credit Concepts

18. Your Name – Credit Expert Your Logo Credit Concepts Helping people improve and protect their credit Sample Presentation Format  Sample –Sample