Understanding your Credit Score

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Although most people realize their credit histories are chronicled in credit reports, 70 percent don't know that they also have a credit score. This presentation is intended to help you understand how credit scoring works and how ANewStartSolutions LLC can help you manage your credit health.

Published in: Economy & Finance
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Understanding your Credit Score

  1. 1. Tired of being… Call Toda y
  2. 2. View your status 24/7
  3. 3. 1. Past Delinquencies… 35% 10% 10% 35% of15% Credit Score 30%
  4. 4. 2. Amount Owed; Debt Ratio… 10% 10% 35% 30%15% of Credit Score 30%
  5. 5. 3. Avg. Age Credit History… 15% 10% 10% 35% of15% Credit Score 30%
  6. 6. 4. Mix of Credit … 10% 10%10% 35% of15% Credit Score 30%
  7. 7. 5. Inquiries… 10% 10%10% 35% of Credit Score15% 30%
  8. 8. Your Credit Score…1. Past Delinquencies 5 - 10% 4 - 10%2. Debt Ratio 1- 35%3. Average Age of File 3 - 15%4. Mix of Credit5. Inquiries 2 - 30% Fico Scores: 300-850
  9. 9.  Reporting Timely Information 100% Verifiable Information 100% Accurate Information
  10. 10. FCRA…Fair Credit Reporting Act Specifically Statesthat Every Item Reporting on a Credit Report MUST BE: Reporting Timely Information (7 year rule)  100% Verifiable Information  100% Accurate Information
  11. 11. We are licensed, bonded and are The Credit Specialists!We… 1. Focus on Education 2. Assist in rebuilding credit 3. Provide secured portals to monitor your progress 4. Customize an individual plan to fit your goals, timeline and offer affordable payments! 5. Offer budget assistance setup & free spreadsheets.
  12. 12. 100% Accurate100% VERIFIABLETimely True The Law states: All items on your credit report must be accurate!
  13. 13. Credit Myths "The credit bureaus are government agencies" The Bureaus are governed by the FTC… They are not part of the government.
  14. 14. Credit Myths My score will increase by “Opting out” of the bureau’s pre-screened offers? www.OptOutPrescreen.com The Bureau’s make billions selling your basic information; this is where a lot of your junk mail pre-approved offers
  15. 15. Credit Myths "Checking my own credit report harms my credit score" You can go to annualcreditreport.com for your free yearly report; without
  16. 16. Credit Myths “My Lender can not use the credit report I obtained from Annual Credit Report” True
  17. 17. Credit Myths “Your income makes a difference in your credit score” The Bureaus do not have your income information and is not used
  18. 18. Credit Myths “FICO scores are locked in for six months, and they change every six months” Your Scores change every day with all 3 Bureaus!
  19. 19. Credit Myths “Too many open accounts will hurt, therefore you must close accounts.” We never recommend closing accounts; that can in itself
  20. 20. Credit Myths “Paying off an old collection or charge off will increase your credit score” Not unless you get a pay for deletion. (there are exceptions)
  21. 21. Credit Myths “Your credit card balances, have nothing to do with your score." Your revolving balance to limit ratio counts! 30% of your score is
  22. 22. Credit Myths "If I get one credit bureau to remove an item from my credit report, all the other bureaus will remove it automatically” All 3 bureaus are separate entities and not all companies report to all 3.
  23. 23. Credit Myths “Multiple mortgage loan inquiries will ding your score for each one” Lender inquiries within 30-45 days will count as one ding.
  24. 24. Credit Myths “It will take me seven years to improve my credit” You need to make your credit a priority and make sure everything reporting

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