“Understanding Credit”
Presented by: Sulie Richardson
Learning Goals• Why use credit?• Who wants to see report & why• Understanding the credit reporting system• What’s in your credit report• How to dispute inaccurate information• What makes up your credit score• How to fix bad credit
What is Credit?
Have a written spending plan
Track your spending
Live within your means
Credit Reporting System
Consumer CreditorCredit Bureaus
Who wants to see your credit report?
Understanding your credit report
Reviewing your credit report
• Information is collected from creditors and public records
• Disputing inaccurate information– 30 days to investigate and communicate
Note: There are no quick fixes to repairing credit…
Other considerationsIdentity Theft VictimConsolidate debtsReduce unwanted credit card solicitations
(optoutprescreen.com or call 888-5-opt-out)
Credit Repair Clinics
Credit Score
www.myfico.com
New credit Amount Owed to creditors
Length of credit history Payment history
Types of credit currently in use
30%35%
15% 10%
10%
Savings secured loan
Pay creditors
Make payments on time
Pay down credit cards and the revolving loans
Grow your credit score…
Secured credit
card
Expensive Credit
Refund anticipation loansRent-to-ownCar title loans
Beware of co-signing
Questions & Comments!
Thank you!
