1. By Lonnie R. Mathews

2. Lonnie R. Mathews Who is

3. American Consumers The average salary in the U.S is $50,233.00 The average consumer has 13 credit cards The average Credit card debt is $8,562 The average car loan amount is $23,801 The average house payment is $684 The average car payment is $442

4. BUILD to establish, increase, or strengthen (often fol. by up): to build a business; to build up one's hopes, build wealth

5. Do This! Annual Income $ X 4 Years Now that you have that figure in mind how is your life going to be change four years from now? --For better or For worse--

6. Wealth

7. POINTS of POWER Discover where you are financially Discover where you want to be financially Discover how to get where you want to be financially SMSL

8. Know where you are Calculate your NET WORTH Assets – Liabilities = Net Worth

9. Track your spending Know where you are

10. Know where you want to be “If you don’t know where you are going how do you know when you get there?”

11. Know where you want to be Set realistic GOALS!! Goals should be: Specific Measurable Achievable Relevant Time

12. Types of GOALS

13. “The definition of insanity is doing the same thing over and over and expecting a different result” – Albert Einstein

14. Develop a BUDGET by changing your habits! Know where you want to be On PAPER, on PURPOSE!

15. BUDGETING TOOLS Know where you want to be On PAPER, on PURPOSE! SMSL

16. Know how to get there

17. STOP procrastinating “To conquer life we must first conquer ourselves”

18. Know how to get there Stay COMMITTED!

19. Understanding Your Credit

20. Credit Reporting Agencies (CRA) Currently there are three CRA’s these companies make money by compiling and reporting financial information about consumers. The information is sold to institutions that need to make financial decisions about individuals

21. Equifax Experian Trans Union The Big Three

22. Your Credit Report

23. Getting your report www.annualcreditreport.com

24. Identifying Information The information contained in this section comes from the application that is filled out supplied to lenders from you. This information is NOT used in scoring only for identification purposes. The information in this section includes: Name Address Social Security Number Date of Birth Employment information

25. Trade Lines Lenders report your account information in this section, they report each account you have, the type of account (bankcard, auto loan, etc), the date opened, credit limit or loan amount and most importantly your PAYMENT HISTORY. This section is usually rated on a scale from 1 to 10 1 = paid on time 2 = 30 days late 3 = 90 days late 9 = charged off

26. Your Credit Report Because the are three major CRAs you actually have three or more credit reports. Each agency formats the information they have on file differently. However each report will have the information broken into four main sections: Identifying Information Trade Lines Inquires Public Record & Collections items

27. Every time you apply for credit you authorize lenders to ask for your credit report. Lenders are interested in knowing if you are actively looking for more credit and why. Inquires are listed on your report for two years, this list tells everyone who has requested your report during that time period. This list is further broken down into: voluntary inquiries involuntary inquires Your Credit Report

28. Public Record & Collections The Credit Reporting Agencies also report information from state and county courts. Information like liens, bankruptcies, foreclosures, etc.. Information from overdue debt collectors is also on your report

29. Common Errors When there is an error on your credit report this information is usually do to human error. This typically happens because: You applied for credit under a different name. Someone made a clerical error in reading or entering names and addresses Inaccurate social security number give Similar names (Sr, Jr, II, or III) Debt applied to the wrong account

30. Your FICO score

31. When determining your credit worthiness lenders also use a score to determine the risk of doing business with individuals. The score used to rate your credit risk is called your FICO® score. This three digit number Your score ranges from: 350 - 850

32. Your FICO score WB Pg 6

33. The FICO® Scores are calculated from several different credit data in your reports. Which means that an individual could have three different scores from all three agencies Individuals credit scores are based on five categories: Payment History35% Amounts Owed30% Length of Credit15% New Credit10% Types of Credit10% Your FICO score

34. Please Note A score takes into consideration all these categories of information, not just one or two. Your score considers both positive and negative information in your credit report. Your FICO score only looks at information in your credit report. The importance of any factor depends on the overall information in your credit report.

35. Now what!!! Stay on TOP! Get informed (minding your money) www.lonniemathews.com

37. “Obstacles are opportunities waiting to happen”