Your Credit Score By Your Name Your Company

Your Credit Score By Your Name Your Company Name Date

What is a Credit Score? • A 3 -digit number used by lenders to evaluate the risk associated with lending you money • It is generated by a mathematical model created by Fair Isaac & Company in the 1950’s. • There are 3 Major Credit Bureaus, Equifax, Experian and Trans Union – You have 3 Scores • Scores range from 350 -850

What is a Good Score? Above 720 = Excellent 680 = Good 620 = Fair Below 620 = Poor

The Cost of Bad Credit HOW MUCH WOULD YOUR MIDDLE SCORE COST YOU IN A MORTGAGE LOAN TRANSACTION AT TODAYS RATES? Home Financing: A 30 -Year Fixed with a loan principal amount of $359, 650* FICO Score APR Rate Monthly Payment Interest Paid Above 720 5. 688% $2085 $390, 833 620 -719 5. 813 -7. 501 $2113 -$2515 $401, 115 -$545, 750 Below 620 8. 531 -9. 289% $2, 773 -$2, 969 $638, 739 -$709, 162 If your score improves to 720 -850, you could save an additional $318, 329 If your score improves to 700 -719, you could save an additional $308, 047 If your score improves to 675 -699, you could save an additional $263, 094 If your score improves to 620 -674, you could save an additional $163, 422 A borrower who increases his or her credit score from 620 to 720+ can potentially save $884 per month on mortgage payments, $10, 608 per year, and approximately $318, 329 over the life of the 30 -year loan. *

Five Factors of Credit Scoring Payment History Late Pays Collections Charge-Offs Repossessions Foreclosures Tax Liens BK’s Judgments Length of History New Credit Soft Inquiries Hard Inquiries Amounts Owed Credit Cards Mortgage Loans Auto Loans HELOC’s Installment Loans Types of Credit Used A Mortgage Loan An Auto Loan 2 -3 Major Credit Cards

1. Payment History 35% – How do you pay your bills? WHAT YOU SHOULD KNOW A recent CONTENT REMOVED FOR DEMO PURPOSES Paying a collection Being past due Derogatory accounts do NOT A divorce decree

2. Amounts Owed 30% – Managing Your Debt WHAT YOU SHOULD KNOW New debt CONTENT REMOVED FOR DEMO PURPOSES Keep balances below When preparing to Don’t consolidate If you go over the limit on your credit card HELOC’s Do not close credit cards EXCEPT USE YOUR CREDIT CARDS or

3. Length of History 15% 4. Mix of Credit 10% WHAT YOU SHOULD KNOW Hold onto CONTENT REMOVED FOR DEMO PURPOSES New credit users The best mix of credit is The type of credit card matters because The best amount of credit cards to have is

5. Inquiries – 10% WHAT YOU SHOULD KNOW Soft vs. Hard Inquiries CONTENT REMOVED FOR DEMO PURPOSES 14 Day Inquiries affect the score Inquiries can cost between You are Pre-Approved means

START IMPROVING YOUR CREDIT SCORES TODAY! Step 1 - CONTENT REMOVED FOR DEMO PURPOSES Step 2 - Step 3 -

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