5. www.MoneyManagement.org
5www.CreditEducation.org
What we will discuss
You will also know:
The product of scoring
What determines the score
Ideal scores
Improve your score
Purchase a score
What you need to have in place for
business financing
12. www.MoneyManagement.org
12www.CreditEducation.org
How to obtain a credit report
Be prepared to provide following
information
Full name
Date of birth
Social security number
Current and previous addresses
Daytime phone number
Photocopy of letter of denial
Photocopy of driver’s license
or other Photo ID
19. www.MoneyManagement.org
19www.CreditEducation.org
How credit reports are the same
The format may be different but all
contain:
• Personal information
• Alerts and validations
• Account information
• Collection agency account information
• Public record information
• Inquiries – internal/external
• Creditor information list
23. www.MoneyManagement.org
23www.CreditEducation.org
Retention standards
Monthly payment activity 2 years
Inquiries 2 years
Civil Judgments 7 years from filing or until satisfied
Tax liens 7 years from filing or until satisfied
Trade lines and closed accounts 7 years from date of last activity
Chapter 7 bankruptcy 10 years from filing date
Chapter 13 bankruptcy 7 years from filing date/10 years if payments not paid
Collection accounts 7 years from delinquency
Foreclosure 7 years from delinquency
Unpaid tax liens Indefinitely from date reported
Charged off accounts 7 years from original delinquency
Closed accounts 10 years from date closed
25. www.MoneyManagement.org
25www.CreditEducation.org
Dispute process
• Complete Dispute Form or write
letter documenting errors
• Mail form to bureau reporting error
• Or contact creditors directly
• Contact Federal Trade Commission
if unable to resolve dispute
• Put 100 word personal statement on
credit report
27. www.MoneyManagement.org
27www.CreditEducation.org
How is a score determined?
Types of Credit in
Use
10%
Payment History
35%
Ow ed to Creditors
30%
Length of Credit
History
15%
Amount of New
Credit
10%
Payment History
Owed to Creditors
Length of Credit History
Amount of New Credit
Types of Credit in Use
30. www.MoneyManagement.org
30www.CreditEducation.org
What is considered a good score?
There is no one score cut-off used by
all lenders, it is hard to say what a
good score is outside the context of a
particular lending decision.
Understanding your fico core – Fair Issac Corporation
32. www.MoneyManagement.org
32www.CreditEducation.org
How to maximize your score
• Make timely payments every month
• Use credit as a convenience
• Do not open unnecessary new credit
• Do not close unused accounts
• Make sure your credit report is accurate
• Use credit!
33. www.MoneyManagement.org
Maximize Your Score
• Clean up social media sites
• Partner in business – should swap
credit reports before diving into
business together
• If you have had some problems
before, be patient
33www.CreditEducation.org