www.MoneyManagement.org
1www.CreditEducation.org
Credit Open for
Business
www.MoneyManagement.org
2www.CreditEducation.org
Who we are
Money Management International is a
nonprofit whose mission is...
www.MoneyManagement.org
Small Business Owners
• 45% of the EWA clients own small
businesses
3www.CreditEducation.org
www.MoneyManagement.org
4www.CreditEducation.org
What we will discuss
Upon completion of this program, you
will have an un...
www.MoneyManagement.org
5www.CreditEducation.org
What we will discuss
You will also know:
 The product of scoring
 What ...
www.MoneyManagement.org
6www.CreditEducation.org
How long has issuing credit been in
existence?
Since the
turn of the
cent...
www.MoneyManagement.org
7www.CreditEducation.org
Overview of credit reporting
• Merchant credit
• WWII shifted population ...
www.MoneyManagement.org
8www.CreditEducation.org
What is a credit report?
A credit report is a record of how
an individual...
www.MoneyManagement.org
9www.CreditEducation.org
Where do credit reporting agencies
obtain information?
ConsumersCreditors...
www.MoneyManagement.org
10www.CreditEducation.org
Myth Buster
Myth
My credit report contains information
about my recent d...
www.MoneyManagement.org
11www.CreditEducation.org
What information is not in a credit
report?
• Race
• Religion
• Medical ...
www.MoneyManagement.org
12www.CreditEducation.org
How to obtain a credit report
Be prepared to provide following
informati...
www.MoneyManagement.org
13www.CreditEducation.org
Free credit reports
• Internet: www.annualcreditreport.com
• Telephone: ...
www.MoneyManagement.org
14www.CreditEducation.org
Myth Buster
Myth
Business partners will share the same
credit file.
TRUE...
www.MoneyManagement.org
15www.CreditEducation.org
Credit reporting Agencies
• Experian
• Equifax
• TransUnion
• Innovis
www.MoneyManagement.org
16www.CreditEducation.org
Myth Buster
Myth
Anyone who wants to can request my
credit report
TRUE F...
www.MoneyManagement.org
17www.CreditEducation.org
Besides for credit, when can a credit
report be viewed?
Employment
Insur...
www.MoneyManagement.org
18www.CreditEducation.org
Myth Buster
Myth
TRUE FALSE
I am a co-signor with my partner, and if she...
www.MoneyManagement.org
19www.CreditEducation.org
How credit reports are the same
The format may be different but all
cont...
www.MoneyManagement.org
20www.CreditEducation.org
How credit reports are different
• Not all creditors report to all
agenc...
www.MoneyManagement.org
21www.CreditEducation.org
Myth Buster
Myth
I don’t need to check my report
because I pay my bills ...
www.MoneyManagement.org
22www.CreditEducation.org
Reviewing credit report for errors
• Check your personal information
suc...
www.MoneyManagement.org
23www.CreditEducation.org
Retention standards
Monthly payment activity 2 years
Inquiries 2 years
C...
www.MoneyManagement.org
24www.CreditEducation.org
Myth Buster
Myth
It is up to the credit reporting agency
to verify infor...
www.MoneyManagement.org
25www.CreditEducation.org
Dispute process
• Complete Dispute Form or write
letter documenting erro...
www.MoneyManagement.org
26www.CreditEducation.org
What is credit scoring?
Credit scoring is a number that
creditors use to...
www.MoneyManagement.org
27www.CreditEducation.org
How is a score determined?
Types of Credit in
Use
10%
Payment History
35...
www.MoneyManagement.org
28www.CreditEducation.org
The benefits of credit scoring
• Increase the speed of credit
decisions
...
www.MoneyManagement.org
29www.CreditEducation.org
Myth Buster
Myth
You need a score above 700 to get a
preferred interest ...
www.MoneyManagement.org
30www.CreditEducation.org
What is considered a good score?
There is no one score cut-off used by
a...
www.MoneyManagement.org
31www.CreditEducation.org
Myth Buster
Myth
A credit repair company can clear up
all my bad credit....
www.MoneyManagement.org
32www.CreditEducation.org
How to maximize your score
• Make timely payments every month
• Use cred...
www.MoneyManagement.org
Maximize Your Score
• Clean up social media sites
• Partner in business – should swap
credit repor...
www.MoneyManagement.org
34www.CreditEducation.org
How to get a credit score
• www.myfico.com
• www.Equifax.com
• www.Trans...
www.MoneyManagement.org
35www.CreditEducation.org
Summary
• Credit report contents
• Review credit report annually
• Dispu...
www.MoneyManagement.org
36www.CreditEducation.org
Summary
• Credit Scoring is accepted standard
for issuing credit
• Credi...
www.MoneyManagement.org
37www.CreditEducation.org
Thank you for coming!
Questions?
www.MoneyManagement.org
38www.CreditEducation.org
Contact Information:
866.515.2227
www.MoneyManagement.org
Building Savin...
Upcoming SlideShare
Loading in …5
×

Personal Money Management

416 views
285 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
416
On SlideShare
0
From Embeds
0
Number of Embeds
120
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Personal Money Management

  1. 1. www.MoneyManagement.org 1www.CreditEducation.org Credit Open for Business
  2. 2. www.MoneyManagement.org 2www.CreditEducation.org Who we are Money Management International is a nonprofit whose mission is to improve lives through financial education through:  Education  Credit Counseling  Debt Management  Housing programs
  3. 3. www.MoneyManagement.org Small Business Owners • 45% of the EWA clients own small businesses 3www.CreditEducation.org
  4. 4. www.MoneyManagement.org 4www.CreditEducation.org What we will discuss Upon completion of this program, you will have an understanding of how to:  The use of a credit report  Contents  Secure your free report  Dispute items
  5. 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
  6. 6. www.MoneyManagement.org 6www.CreditEducation.org How long has issuing credit been in existence? Since the turn of the century 500 years Over 3,000 years
  7. 7. www.MoneyManagement.org 7www.CreditEducation.org Overview of credit reporting • Merchant credit • WWII shifted population to the cities • Merchants shared account information • Credit reporting industry got its start
  8. 8. www.MoneyManagement.org 8www.CreditEducation.org What is a credit report? A credit report is a record of how an individual has applied for, received and repaid credit obligations in the past.
  9. 9. www.MoneyManagement.org 9www.CreditEducation.org Where do credit reporting agencies obtain information? ConsumersCreditors Public Records Internal Inquiries Consumer Statements Collection AccountsExternal Inquiries
  10. 10. www.MoneyManagement.org 10www.CreditEducation.org Myth Buster Myth My credit report contains information about my recent divorce. TRUE FALSE
  11. 11. www.MoneyManagement.org 11www.CreditEducation.org What information is not in a credit report? • Race • Religion • Medical history • Political affiliation • Criminal records • Checking or savings account information • Any information that is not credit related
  12. 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
  13. 13. www.MoneyManagement.org 13www.CreditEducation.org Free credit reports • Internet: www.annualcreditreport.com • Telephone: 877-322-8228 • Mail: Annual Credit Report Request Service • Been denied credit • Unemployed and looking for work • On public assistance
  14. 14. www.MoneyManagement.org 14www.CreditEducation.org Myth Buster Myth Business partners will share the same credit file. TRUE FALSE
  15. 15. www.MoneyManagement.org 15www.CreditEducation.org Credit reporting Agencies • Experian • Equifax • TransUnion • Innovis
  16. 16. www.MoneyManagement.org 16www.CreditEducation.org Myth Buster Myth Anyone who wants to can request my credit report TRUE FALSE
  17. 17. www.MoneyManagement.org 17www.CreditEducation.org Besides for credit, when can a credit report be viewed? Employment Insurance Professional License Court order or Federal Subpoena Collection Purposes IRS for a repayment plan
  18. 18. www.MoneyManagement.org 18www.CreditEducation.org Myth Buster Myth TRUE FALSE I am a co-signor with my partner, and if she defaults on the note , it will show up on my credit report.
  19. 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
  20. 20. www.MoneyManagement.org 20www.CreditEducation.org How credit reports are different • Not all creditors report to all agencies • Timing • Timing of updated information not necessarily equal
  21. 21. www.MoneyManagement.org 21www.CreditEducation.org Myth Buster Myth I don’t need to check my report because I pay my bills on time. TRUE FALSE
  22. 22. www.MoneyManagement.org 22www.CreditEducation.org Reviewing credit report for errors • Check your personal information such as name and social security number • Verify your account status information • Check your active account dates • Look for out of date information
  23. 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
  24. 24. www.MoneyManagement.org 24www.CreditEducation.org Myth Buster Myth It is up to the credit reporting agency to verify information before they put it on my report. TRUE FALSE
  25. 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
  26. 26. www.MoneyManagement.org 26www.CreditEducation.org What is credit scoring? Credit scoring is a number that creditors use to assess the likelihood that consumers will repay their debts and make payments on time. No score-850 FICO
  27. 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
  28. 28. www.MoneyManagement.org 28www.CreditEducation.org The benefits of credit scoring • Increase the speed of credit decisions • Assist lenders in making unbiased decisions • Credit is more available
  29. 29. www.MoneyManagement.org 29www.CreditEducation.org Myth Buster Myth You need a score above 700 to get a preferred interest rate. TRUE FALSE
  30. 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
  31. 31. www.MoneyManagement.org 31www.CreditEducation.org Myth Buster Myth A credit repair company can clear up all my bad credit. TRUE FALSE
  32. 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. 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
  34. 34. www.MoneyManagement.org 34www.CreditEducation.org How to get a credit score • www.myfico.com • www.Equifax.com • www.TransUnion.com • www.Experian.com • Msn – Money Tab CS Calculator
  35. 35. www.MoneyManagement.org 35www.CreditEducation.org Summary • Credit report contents • Review credit report annually • Dispute any errors • Maintain good credit
  36. 36. www.MoneyManagement.org 36www.CreditEducation.org Summary • Credit Scoring is accepted standard for issuing credit • Credit scores determine whether you can get credit and what interest rate you will pay • Having a good credit score makes your financial dealings easier and can save you money.
  37. 37. www.MoneyManagement.org 37www.CreditEducation.org Thank you for coming! Questions?
  38. 38. www.MoneyManagement.org 38www.CreditEducation.org Contact Information: 866.515.2227 www.MoneyManagement.org Building Savings and Wealth 07_2007©

×