Transcript
Presented by: Presented by:
www.www.I Clean I Clean UUgly gly Credit.comCredit.com
Credit Tips
Three Major Credit Bureaus
Creditor PAYS to reportCustomer Information
Experian TransUnion Equifax
Not all Creditors report to all three Credit Bureaus
What is FICO?– Fair Isaac Corporation– Developed in 1989– Gold Standard Measure of Risk– Ranges from 300 to 850– Median Score is 720
www.ICleanUglyCredit.Com
Our FICO Scores Affect:• Interest Rates
– Mortgage Loans– Credit Cards– Auto loans
• Ability to Obtain Housing (Rental or Lease)
• Insurance Rates• Employment• How People View Us
A 2005 Congressional Study
Results of Study
– 70 – 90% of ALL Credit Reports have ERRORS!
– 15 – 25% of Errors are Significant Enough to Cause Credit to be DENIED!
Cost of Bad Credit
$20,000 Car Loan Paid over 5 years
Score Interest Payment
720 or higher 4.9 % $377.00
579 or lower 29.0 % $635.00
$258.00 more each month
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Cost of Bad Credit
30 Year Mortgage
Score Interest Payment
720 or higher 6.081% $1081 P&I
599 or lower 10.582% $553 MORE each month
• These facts were gathered from the Experian National Score Index (September 2008)
• These credit score facts are based on information compiled from a large database of credit scores in the United States.
Let’s look at some Statistics…
Credit Scores Below the National Average of 680*
Texas 651California 672Nevada 655Florida 673Arizona 659Colorado 674New Mexico 663Alaska 674Louisiana 663Indiana 676South Carolina 665
Oklahoma 666Washington DC 677North Carolina 667Kentucky 677Alabama 676 West Virginia 679Georgia 668Tennessee 679Arkansas 668Michigan 679 Mississippi 668
Statistics from 2008 Money-Zine.com
Credit Scores at or Above the National Average
Rhode Island 692Kansas 682New Jersey 693Utah 683Connecticut 694Missouri 683Nebraska 695Illinois 684Pennsylvania 696Delaware 684Wisconsin 699Ohio 685Maine 699Oregon 686Iowa 700
New York 686Montana 701Maryland 688New Hampshire 703Idaho 688Massachusetts 703Hawaii 688Vermont 706Virginia 689North Dakota 706Wyoming 690Minnesota 707Washington 691South Dakota 710
What affects your credit score?
• 35% Payment history• 30% Amounts owed• 15% Length of credit
history• 10% Inquiries- New Credit• 10% Types of credit used
Paymentt History
35%
Amounts Owed30%
Types 10%
New 10%
Credit History
15%
Balances Carried – 30%
• Keep balances at 30% or less• Outstanding Balance vs. available
credit affects score• Mortgage / Installment loans are less
of factor
Payment History- 35%
• Bills Paid as agreed• Most Recent 6 months• Highest weight is on longest
delinquency
Credit History – 15%
• Longer credit history = Higher credit score
• Long credit history of paid as agreed positive impact to credit score
• Try not to close credit accounts – Especially if long history
Mix of Accounts – 10%• Ideal to have installment & revolving
accounts• Mortgage Loan• Auto Loan• 3 – 5 credit cards (more is okay)• HELOC should be greater than $40K or will
report as revolving account vs. mortgage.
Inquires -10%• Shopping around?
– Make sure that multiple reports for mortgage and auto are within a short period of time
– Each inquiry can average 5-8 points
Inquiries that do not hurt the score:
• Job related• Insurance / Utilities• Account Review• Personal (www.annualcreditreport.com)
and obtain free credit report• Promotional (pre-approved offers in the
mail).
Credit Myths and Facts1. Canceling or closing credit
cards/accounts boosts my score.2. Credit scores are locked in for six
months.3. I don’t need to check my credit
report if I pay my bills on time.4. All credit reports are the same.
5. A divorce decree automatically severs joint accounts.
6. All negative remarks come off in seven years.
7. If you already have bad credit, then your credit scores will suffer for seven years.
8. Check Cards (debit cards) can help your credit scores.
Things YOU can do….• Review your credit BEFORE you need
it!• www.annualcreditreport.com• Pay your bills on time….NEVER late• Keep balances on credit cards limited
to no more than 30% of credit limit• Do not close accounts• Limit the number of inquiries• Show a “variety of types of credit”
Be a “Hero”give a referral….
**Note: Ask CPA or tax preparer about write-off
More $$$ in Your Pocket !!
• Sponsor a free Basic Credit & Budget Workshop
• Home Buyer Seminar- turning renters into buyers
• Webinars• Consultation is only $29.00• Helps with Lease Option Clients• Build your list of “buyers” by referrals
How much is the credit program?
• $375 for six months • ($100 for each additional person
at same address)• Or Two payments of $200• Or Setup fee of $175 and four
monthly payments of $69 ($451)
We wish to sincerely thank you for your
time and this opportunity !
I Clean Ugly CreditDebbie and Nancy
THANK YOU…….
Nancy
Debbie
www.ICleanUglyCredit.Com
Contact:
I Clean Ugly Credit:
www.ICleanUglyCredit.com
480-219-6557 office
877-369-5182 toll free
Email: info@ICleanUglyCredit.com
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