Credit the impact of today’s economy on approvability

The Problem: Consumers are being squeezed

Consumers are being squeezed

The Problem: Consumers are being squeezed Reduced Qualification

Consumers are being squeezed

The Problem: Consumers are being squeezed Reduced Qualification Reduced Lines

Consumers are being squeezed

The Problem: Consumers are being squeezed Reduced Qualification Reduced Lines Tighter Guidelines

Consumers are being squeezed

The Solution Do Your Homework

Do Your Homework

The Solution Do Your Homework Develop a Plan

Do Your Homework

Develop a Plan

The Solution Do Your Homework Develop a Plan Monitor your Results

Do Your Homework

Develop a Plan

Monitor your Results

So What are Lenders really looking for?

What Determines Perfection? FICO™ Score Lenders today look at much more than just your credit.

FICO™ Score

What Determines Perfection? FICO™ Score MDS™ Score Lenders today look at much more than just your credit.

FICO™ Score

What Determines Perfection? FICO™ Score MDS™ Score Lenders today look at much more than just your credit. Time in Biz

FICO™ Score

What Determines Perfection? FICO™ Score MDS™ Score Lenders today look at much more than just your credit. Time in Biz Public Records

FICO™ Score

What Determines Perfection? FICO™ Score MDS™ Score Lenders today look at much more than just your credit. Time in Biz Public Records Utilization

FICO™ Score

What Determines Perfection? FICO™ Score MDS™ Score Lenders today look at much more than just your credit. Time in Biz Public Records Utilization PayDex™

FICO™ Score

What is the importance of FICO®?

FICO™ is all about managing risk

FICO™ accurately predicts defaults

FICO™ accurately predicts defaults

The national average FICO score is currently 850 800 750 700 650 600 550 500 450 400 350 300

The national average FICO score is currently

The national average FICO score is currently 850 800 750 700 650 600 550 500 450 400 350 300 678

The national average FICO score is currently

What about other scoring models?

What about other scoring models? The FICO™ score range is copyrighted 300-850

The FICO™ score range is copyrighted

What about other scoring models? The FICO™ score range is copyrighted Only the FICO™ is currently used by 300-850

The FICO™ score range is copyrighted

Are Credit Bureaus all the Same?

Are Credit Bureaus all the Same? CRAs provide raw data, resellers package it

CRAs provide raw data, resellers package it

Are Credit Bureaus all the Same? CRAs provide raw data, resellers package it Not everyone reports to every bureau

CRAs provide raw data, resellers package it

Not everyone reports to every bureau

How is FICO® Calculated?

FICO Calculation - Weights 10% - New Credit

10% - New Credit

FICO Calculation - Weights 15% - Age of Credit

15% - Age of Credit

10% - Types of Credit Used FICO Calculation - Weights

10% - Types of Credit Used

FICO Calculation - Weights 30% - Amounts Owed

30% - Amounts Owed

FICO Calculation - Weights 35% - Payment History

35% - Payment History

FICO Calculation - Scorecards A series of “Scorecards” are run through to determine a final score.

A series of “Scorecards” are run through to determine a final score.

FICO Calculation - Scorecards Scorecards start at zero and points are added, not the other way around.

Scorecards start at zero and points are added, not the other way around.

FICO Calculation - Scorecards There are scorecards for different topics, such as inquiries, delinquency, and utilization.

There are scorecards for different topics, such as inquiries, delinquency, and utilization.

Here’s a Problem

Limit Reductions You have a net credit limit of $30,000. You pay on time and have a total balance of $10,000.

You have a net credit limit of $30,000.

You pay on time and have a total balance of $10,000.

Limit Reductions You have a net credit limit of $30,000. You pay on time and have a total balance of $10,000. You have a utilization rate of 33%

You have a net credit limit of $30,000.

You pay on time and have a total balance of $10,000.

Limit Reductions To minimize risk, your bank reduces your limit from $30,000 to $20,000. 50%.

To minimize risk, your bank reduces your limit from $30,000 to $20,000. 50%.

Limit Reductions To minimize risk, your bank reduces your limit from $30,000 to $20,000. 50%. Your utilization rate is now 50%

To minimize risk, your bank reduces your limit from $30,000 to $20,000. 50%.

Because of your higher utilization rate, your FICO® score drops.

Because of your higher utilization rate, your FICO® score drops.

Because of your higher utilization rate, your FICO® score drops. Because of your lower score, other lenders reduce their lines as well.

Because of your higher utilization rate, your FICO® score drops.

Because of your higher utilization rate, your FICO® score drops. Because of your lower score, other lenders reduce their lines as well. Your utilization spikes, so now you are not only maxed out on your lines, but you cannot apply for new lines because your credit has dropped.

Because of your higher utilization rate, your FICO® score drops.

Here’s a Solution

Consumers need a new S TRATEGY Home Equity has dried up, friends and family have limited funds, and lines of credit are too difficult to get. Old

Home Equity has dried up, friends and family have limited funds, and lines of credit are too difficult to get.

Old

Get what you W ANT Short-Term financing is the new option

Short-Term financing is the new option

Get what you W ANT Short-Term financing is the new option Merchant Cash Advance

Short-Term financing is the new option

Merchant Cash Advance

Get what you W ANT Short-Term financing is the new option Merchant Cash Advance Factoring

Short-Term financing is the new option

Merchant Cash Advance

Factoring

Get what you W ANT Short-Term financing is the new option Merchant Cash Advance Factoring Showroom Financing

Short-Term financing is the new option

Merchant Cash Advance

Factoring

Showroom Financing

Get what you W ANT Short-Term financing is the new option Merchant Cash Advance Factoring Showroom Financing Short-Term Loans

Short-Term financing is the new option

Merchant Cash Advance

Factoring

Showroom Financing

Short-Term Loans

Get what you W ANT Short-Term financing is the new option Merchant Cash Advance Factoring Showroom Financing Short-Term Loans SBA/ARC Loans

Short-Term financing is the new option

Merchant Cash Advance

Factoring

Showroom Financing

Short-Term Loans

SBA/ARC Loans

Rest Easier Regularly check your approvability

Regularly check your approvability

Rest Easier Regularly check your approvability Manage exposure

Regularly check your approvability

Manage exposure

Rest Easier Regularly check your approvability Manage exposure Know your best time to strike

Regularly check your approvability

Manage exposure

Know your best time to strike

Rest Easier Regularly check your approvability Manage exposure Know your best time to strike Check your utilization trends

Regularly check your approvability

Manage exposure

Know your best time to strike

Rest Easier Regularly check your approvability Manage exposure Know your best time to strike Check your approvability

Regularly check your approvability

Manage exposure

Know your best time to strike

Rest Easier Regularly check your approvability Manage exposure Know your best time to strike Check what you may qualify for

Regularly check your approvability

Manage exposure

Know your best time to strike

About the Author Scott Rowland is the Managing Partner of The Highly Trained Eye™, which specializes in providing training support services to businesses and training departments worldwide. The Highly Trained Eye, LLP www.highlytrainedeye.com 603-418-0983 [email_address]

Scott Rowland is the Managing Partner of The Highly Trained Eye™, which specializes in providing training support services to businesses and training departments worldwide.