Educating The Consumer Public Forum Shared Pp 112608 Slide Show View Only

Educating the Consumer Helping People Clean up their Credit and Repair their Financial Lives

Know Who You’re Dealing With Annual Income $ Experian Fines $ $473 Million TransUnion $1.0 Billion Equifax $1.5 Billion Source: www.FTC.gov

Companies Who Review Your Credit Banks Mortgage Lenders Credit Card Companies Auto Insurance Companies Landlords – Rental Agencies Potential Employers

How Inaccurate Are They ! •2002 National Credit Retailer Assoc. 100% • -study found 20% of consumers are misclassified for sub-prime loans 79% 2002 •2003 Federal Reserve Board 70% 2003 50% • 70% of credit reports contain 2004 inaccurate information •2004 MASSPIRG • 79% of all credit 20% reports are inaccurate 0% % Inaccurate

$ How Much Inaccuracies Cost $ ...and your If your FICO score is: Your interest rate is: monthly payment is 760-850 5.60% $1,731 700-759 5.80% $1,773 660-699 6.10% $1,828 620-659 6.90% $1,988 580-619 9.30% $2,482 500-579 10.20% $2,694

What's a Credit Score ??? Credit score : numerical expression based on a statistical analysis of a person's credit files Creditworthiness : the perceived likelihood that the person will pay debts in a timely manner.

Know Your Credit Scores 679 – 620 729 – 680 730 – 850 Good Excellent Fair Below 500 619 – 500 NO Federal Poor Financing

What Effects Your Credit Score? Payment History 10% Amount Owed 10% 35% Length of Credit History 15% New Credit Types of Credit Used 30%

How to Read Your Credit Report The 4 Negative Trade Lines Sections Trade Lines of a Credit Report: -----Bankruptcy Public Collections -----Tax Liens Records -----Judgments

LIFE HAPPENS… It’s Not your Fault! Lack of Consumer Knowledge • June 19th, 2007 U.S. House of Representatives Committee on Financial Services Divorce • Loss of job • Illness • Mistakes made by Creditors •

How to Keep Good Credit  Pay all bills TIMELY – NOT ON the Due Date  Keep old accounts OPEN  Limit your credit to Mortgages, Auto Loans and a few MAJOR Credit Cards  Resist opening new Credit Cards for the 10% discount at Department Stores

How to Increase Your Credit Scores  Dispute ALL negative trade lines to make the bureaus prove accuracy.  Obtained a Secured Credit Card – Use Responsibly  Request HELOCS to be reported as mortgages instead of revolving accounts.  Open revolving business accounts and transfer personal balances to them  Credit Cards BELOW 40% of available credit limit 40%

Credit Score Myths  Having multiple credit cards will improve your credit  Closing accounts will raise your scores  Paying off collections always raises scores

Hire a Professional For Best Results Call for a FREE Credit Review STOP overpaying on: Mortgages, Car Loans, Credit Cards, Insurance LOWER your interest rates NOW!

Credit Reporting Agencies • TRANS UNION PO BOX 4000 CHESTER, PA 19016 866-877-2673 www.transunion.com • EQUIFAX CREDIT PO BOX 740241 ATLANTA, GA 30374 www.equifax.com • EXPERIAN PO BOX 2002 ALLEN, TX 75013 www.experian.com Helping YOU Protect Your Credit Rights

Educating The Consumer Public Forum Shared Pp 112608 Slide Show View Only

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