To Your Credit Credit Reports and Credit Scores

  • Slides: 16
Download presentation
To Your Credit: Credit Reports and Credit Scores PRESENTED BY: GINA DENARDO FINANCIAL WELLNESS

To Your Credit: Credit Reports and Credit Scores PRESENTED BY: GINA DENARDO FINANCIAL WELLNESS COORDINATOR EMERGE COMMUNITY DEVELOPMENT

Credit Scores vs. Credit Reports O Trans Union C I F e r o

Credit Scores vs. Credit Reports O Trans Union C I F e r o Experian Sc Equifax Van tag Sco e re

What is a Credit Score for? Your credit score is an indicator of your

What is a Credit Score for? Your credit score is an indicator of your creditworthiness. This number was designed to indicate how likely the borrower is to repay a loan

What Credit Scores are used for • Good credit helps with – Purchasing a

What Credit Scores are used for • Good credit helps with – Purchasing a home – Purchasing a car • It may be checked by – Landlords – *Potential employers – Insurance companies – Cell phone companies – Utility companies

How Credit Scores are determined Like a GPA, a credit score is a cumulative

How Credit Scores are determined Like a GPA, a credit score is a cumulative number that measures your success relative to others, in this case grading you as a credit -worthy individual. This number is based on information listed on your credit report. .

What Makes Up A Credit Score 10% 35% Payment History Amounts Owed Length of

What Makes Up A Credit Score 10% 35% Payment History Amounts Owed Length of Credit History 15% New Credit Mix 30%

FICO Score Credit Risk 800+ Exceptional 740 -799 Very Good 670 -739 Good 580

FICO Score Credit Risk 800+ Exceptional 740 -799 Very Good 670 -739 Good 580 -669 Fair 579 & Lower Poor Vantage. Score Grade Credit Risk 900 -990 A Super Prime 801 -900 B Prime Plus 701 -800 C Prime 601 -700 D Non-Prime 501 -600 F High Risk Remember, no score is ever hard and fast. Lenders often tweak scoring algorithms to fit their business models.

What is the average Credit Score? • Vantage Score breaks it down: – Mankato,

What is the average Credit Score? • Vantage Score breaks it down: – Mankato, Minnesota — 706 – Rochester, Minnesota — 705 – Minneapolis, Minnesota. — 704 • FICO – The national average FICO score is at an alltime high at 695, compared to 688 in October 2005.

What is included in the score and what is not Yes Credit Cards Auto/Personal

What is included in the score and what is not Yes Credit Cards Auto/Personal Loans Mortgages Late payments Collections/Judgements Liens Bankruptcy NO Gender/Race/Age Income Utilities Insurance Rent payments Employers Payday & Title Loans

How to read a credit report 4 main categories: • • Personal ID Info

How to read a credit report 4 main categories: • • Personal ID Info Public Records Credit Accounts Inquiries

How can I get a better score? GET THE GOOD STUFF GOING! • Pay

How can I get a better score? GET THE GOOD STUFF GOING! • Pay your bills on time • Maintain balances at 30% or lower than available credit • Apply for traditional credit – (including credit cards or bank loans). • Dispute incorrect information • Pay off negative accounts

How To Dispute an item on my report • Can be done on-line or

How To Dispute an item on my report • Can be done on-line or by mail • If you dispute something, the creditor has 30 BUSINESS days to confirm the debt. • If they can’t, the information needs to be taken off your report.

How can I get a free Credit Report? www. Annual. Credit. Report. com If

How can I get a free Credit Report? www. Annual. Credit. Report. com If you have been denied a: – – – Credit card Loan Insurance Job Housing You should receive a letter explaining how to get your free report.

“Free” Credit Score • Often they give you a Vantage score, not your FICO

“Free” Credit Score • Often they give you a Vantage score, not your FICO score. • If they ask for your bank/credit card information they may be signing you up for a monthly service that you will be paying for! • Only use these sites if you are comfortable having them share your information with other companies!

Credit Bureau update: Equifax Breach this summer: Hackers accessed people’s names, Social Security numbers,

Credit Bureau update: Equifax Breach this summer: Hackers accessed people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. They also stole credit card numbers for about 209, 000 people and dispute documents with personal identifying information for about 182, 000 people. What can you do? https: //www. equifaxsecurity 2017. com/potential-impact/ More information: https: //www. equifaxsecurity 2017. com/

Questions? Gina De. Nardo Financial Wellness Manager EMERGE Community Development De. Nardo. G@EMERGE-MN. org

Questions? Gina De. Nardo Financial Wellness Manager EMERGE Community Development De. Nardo. G@EMERGE-MN. org