Knowing your credit score is a basic part of taking charge of your finances. In this Food & Finance Boot Camp for Women we discuss the importance of knowing your credit score and how FICO considers 5 different factors to calculate your score. This Food & Finance event was created and hosted by Tina Powell and Mark Germain, CFP®, MBA, ADPA® of Beacon Wealth Management LLC on March 18, 2014 at Le Gourmet Factory Cooking School in Englewood, New Jersey.

1. Financial Boot Camp for Women
(and Men too!)
Food & Finance
Presented by: Beacon Wealth Management
@BeaconWealth

3. Food & Finance 3/18/14 3
Important Disclosure
Everything in this presentation
today is intended to be
educational in nature, and
hopefully will assist you in
reaching your financial goals.
However, it is all general in
nature, and not specific to any of
you or your circumstances.
Nothing we say here today can
replace real investment advice
that is rendered after a thorough
review of your financial situation.

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According to testimony before a House Financial Services
subcommittee on March 24, 2010, FICO scores are used in
about 10 billion decisions worldwide each year.
Source: http://archives.financialservices.house.gov/media/file/hearings/111/quinn_testimony.pdf

5. A credit score represents the likelihood that
person will pay his or her debts.
Food & Finance 3/18/14 5
0 FICO stands for Fair, Isaac, and
Company (1989)
0 FICO is the best known and most
widely used credit score model in
the United States
0 FICO model is used by credit
reporting bureaus such as
Experian, Equifax, and TransUnion
to produce FICO score
Source:
http://en.wikipedia.org/wiki/Credit_score_in_the_United_States
FACT Act – Fair and
Accurate Credit
Transactions Act
Each U.S. resident is
entitled to a free
report every 12
months.

6. The FICO score is a three digit number
ranging from 300 - 850.
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300
Low Score
850
High Score

7. The U.S. average credit score is 687.
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Minnesota's average
score of 718 tops
Experian's most recent
list. The U.S. average is
687, with southern
states typically
reporting lower scores.
Source & Link:
http://www.governing.com/gov-
data/economy-finance/average-credit-
score-by-state.html

8. In addition to lending decisions, credit is used for
insurance and employment approvals.
Food & Finance 3/18/14 8
Lending
Source: http://banking.about.com/od/creditscoresandreporting/a/whatiscredit.htm
Image Source: http://www.texascooking.com/features/april2009-homemade-mayonnaise.htm
Insurance Employment

9. What information is not considered by the
FICO scoring model?
a) Name of your last employer
b) Requests by consumers for their own credit report
c) Interest rate being charged on other accounts
d) The value of your assets
e) None of the above
Food & Finance 3/18/14 9

10. To calculate that score, FICO considers five
different factors:
Food & Finance 3/18/14 10
Source: http://archives.financialservices.house.gov/media/file/hearings/111/quinn_testimony.pdf
Image Source: http://dietsinreview.s3.amazonaws.com/diet_column/wp-
content/uploads/2013/10/DONUTS1.jpg
Payment
history
35%
Amounts
owed
30%
Length of
credit history
15%
Pursuit of
new credit
10%
Mix of credit
10%

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There is no quick fix for bad credit scores.

12. A few guidelines that will very likely impact a
consumer’s score in a positive way.
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1. Pay your bills on time – consistently.
2. Keep credit card balances low.
5. Be patient – demonstrate your
responsible credit habits over time.
4. Check your credit report to ensure its
accuracy.
3. Don’t open new credit accounts you
don’t need.

13. Don’t wait. Now is a perfect
time to get credit smart.
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3 Great Resources
Federal Trade
Commission
http://www.consumer
.ftc.gov/articles/0058-
credit-repair-how-
help-yourself
Credit Repair: How to Help
Yourself and know your
rights.
Credit
Karma™
www.creditkarma.com Free web-based credit and
financial management
service for U.S. customers.
LifeLock® www.lifelock.com American identity theft
protection company which
also guards against credit
fraud.

14. Empowering
and informative
programs for
women. Join us
for future
events or host
your own!
Please email tina@bwmllc.com
Tina Powell, Director of
Business Management
14
Mark Germain, CFP®, MBA, ADPA®
and Tina Powell
LinkedIn
www.linkedin.com/in/mark-germain
www.linkedin.com/in/tinapowell
Food & Finance 3/18/14

15. We appreciate
your generous
participation
this evening.
We give special thanks
to TD Ameritrade
and to Nick Prastos,
Chef Galit Aboodi, and
Alison Gray of Le
Gourmet Factory.
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