For Jim Siwek's students

1. +
Credit and Credit Scores
Jillayne Schlicke

2. +
Agenda
 Don’t buy things you can’t afford
 Credit cards
 FICO
 Questions
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3. +
SNL Video
 https://www.nbc.com/saturday-night-live/video/dont-buy-
stuff/n12020
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4. +
Interest
 Did anyone’s mom or dad charge interest if you
borrowed money from them?
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5. +
Building a credit history
Adulting
Employment
Buy a car
Rent an apartment
Apply for a student loan
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6. +
Credit Cards
 Once you turn 18, you are allowed to sign legal contracts
and will receive offers from lenders for your first credit
card.
 AVOID ALL THESE OFFERS.
 If you don’t have a savings account yet, go to a bank or
credit union near where you live and open a savings
account. You can get a savings account as a minor and a
parent will be named as the co-signor on the account
 Once you turn 18, go to the bank where you do your
banking and apply for a credit card with a very small limit,
like $500.
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7. +
Credit Card Calculator
 https://www.bankrate.com/calculators/credit-
cards/credit-card-payoff-calculator.aspx
$500.
$25 monthly payment.
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Credit Card Calculator
 https://www.bankrate.com/calculators/credit-
cards/credit-card-payoff-calculator.aspx
$500.
$25 monthly payment.
2 years?!! WHAT?
25 x 24 months = $600.
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Credit Card Calculator
 https://www.bankrate.com/calculators/credit-
cards/credit-card-payoff-calculator.aspx
$1,000
$25 monthly payment.
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Credit Card Calculator
 https://www.bankrate.com/calculators/credit-
cards/credit-card-payoff-calculator.aspx
$1,000
$25 monthly payment.
4.6 years?!! WUT???
25 x 56 months = $1,400.
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FICO
A FICO score measures risk into the future.
Banks, lenders, etc., want to know how you
manage money.
Goal: keep balances below 25% of credit
limit.
Even if making payments on time, if balance
is over 50% of limit, this will effect score.
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12. +
What makes up a FICO score?
 A FICO score is a mathematical predictor of future
likelihood of paying bills as agreed.
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Data is grouped into
five categories and the
percentages are based
on the importance of the
five categories for the
general population.
35% Payment history
30% Amount owed
15% Length of credit history
10% New credit
10% Types of credit used

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Can I order a credit report on
someone I’m dating?
No, because this is not one of the purposes
for ordering a credit report under the Fair
Credit Reporting Act.
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Purpose of ordering a credit report
Insurance
Professional license
Instruction from consumer
Extension of credit
Employment
Response to a court order
Other legitimate business needs.
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What about co-signing with
someone to buy a car or furniture?
If you open joint accounts w/spouse, those
accounts and their credit history are yours
…for better or for worse.
Same with two unmarried persons
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16. +
What about co-signing with
someone to buy a car or furniture?
If you split up and they don’t pay the bill, this
will reflect as late payments on YOUR credit
score.
Do not co sign on anything for anyone ever.
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17. +
Student loans
If paid on time, will help credit score
Uncollateralized, but considered a “secured”
loan
Balance to loan limit, not necessarily
important on a student loan.
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Inquiries
Multiple inquiries within a 45 day period
are only counted as ONE inquiry
Mortgage, auto and student loans
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Credit Repair Companies
 AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID AVOID AVOID
AVOID AVOID AVOID AVOID AVOID
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Three Credit Bureaus
 Equifax
 Experian
 Trans Union
 annualcreditreport.com
One free credit report on yourself each year from
each of the three credit reporting agencies.
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21. +
ECOA
Equal Credit Opportunity Act
1974
ECOA points us toward the evaluation based
on creditworthiness only.
It is a violation to discourage an applicant from
making an application for credit on a prohibited
basis
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22. +
Equal Credit Opportunity Act
Lending decisions cannot be based on:
Race
Color
Religion
National Origin
Sex
Marital Status
Income from Public Assistance
(Age)
Whether an applicant has exercised his
or her rights under this act.
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23. +
Equal Credit Opportunity Act
Marital Status
Mrs. John Smith
Income from Alimony or Child Support
Stable and will continue
Childbearing Years
Before ECOA…
Permanent Residency and Immigration Status
Will need an identity document
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24. +
Additional Protected Classes in WA
State:
Sexual Orientation
Gender Identity
The use of a service animal
Honorably discharged military Veterans
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Jillayne Schlicke
CE Forward, Inc.
206-931-2241
jillayne@ceforward.com
CEForward.com

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27. +
Credit and Credit Scores
Jillayne Schlicke