Understanding Your Credit Score Video 1 Video 2

Understanding Your Credit Score Video 1 Video 2

The Credit Bureaus l l l Equifax Experian Trans. Union Video 3 Video 4 Video 5

What are credit scores? l l l A credit score is a measure of consumer’s credit risk and loan worthiness. Each Credit Bureau has it’s own score, plus there is a combo score called… • Vantage Score 3. 0 – joint credit score from the three major credit bureaus. There are small differences between each credit bureau’s data. Fair Isaac Corporation – FICO score: most commonly used score. • (variety of FICO scores for each specific type of industry where financing is an option-auto, home, credit card, furniture, electronics, etc. ) • FICO is a software company based in San Jose, California and founded by Bill Fair and Earl Isaac in 1956.

Credit Score Ranges l FICO and Vantage 3. 0 now have the same ranges

What’s in your credit report? l l l Identification – name, address, SS# Employment – current and previous Credit – accounts, limits, payments Inquiries – requests for info. Public Records – foreclosure, tax liens, bankruptcy. (Negative information remains for 7 years. Bankruptcy remains 10. )

Components of a FICO score: A big variable here is your credit utilization ratio, which is the percentage of how much you owe on your cards compared with your available credit. Most credit scoring models penalize you for using more than 30% of your available credit. Installment credit (set date to be paid off) vs. Revolving credit (no set date for payoff)

How to order your credit report Annual Credit Report l Online at www. annualcreditreport. com l l Phone Mail