This document provides information about understanding credit scores. It discusses the purpose of credit reports, the information included in credit reports, factors that affect credit scores, how to obtain credit reports, and tips for credit repair. Specifically, it notes that credit reports are used to assess credit risk, include personal information and payment history, and credit scores range from 300-850. Payment history, debt amounts, credit history length, new credit, and credit types are the main factors impacting credit scores.

1. Understanding Your
Credit ScoreThe Home Purchase ExpertsSM
Presented By John Smith
Vice President of Mortgage Lending

2. • Guaranteed Rate was founded in 2000 by President and CEO Victor Ciardelli
• Since 2000 GR has had double-digit growth each year, becoming the 2nd
largest independent mortgage company in the nation!
• Headquartered in Chicago, with more than 2,500 employees companywide,
with more than 140 offices Nationwide
• Licensed in 49 states plus Washington D.C.
• Closed Loan Volume of more than $14.5 Billion for 2012
About Guaranteed Rate

3. Agenda
• Credit report purpose
• Information included on a credit report
• Credit score factors
• How to get a copy of your credit report
• Credit repair process

4. Credit Report Purpose
• Provides a history of your credit use to
prospective lenders
• Allows lenders to assess risk of extending credit
to you
• Used for all forms of credit, including apartment
rental, credit cards, student loans, car & home
loans, etc.

5. Establishing Credit
• Apply for credit card with a reasonable limit
• Buy something for approx. $100, and pay back in
2 months
• Do it again, and make sure to pay on time!
• 4 trade lines will be needed to obtain a mortgage
• 12 months of activity are needed to develop
credit history

6. What Information is Included in a
Credit Report?
• Personal Info: name, address, date of birth, employer
• Credit Account History: credit card company/lender,
type of account, credit limit, balance, payment
history
• Public Records: bankruptcy, tax liens, and judgments
• Credit Inquiries: creditor and date of inquiry

7. What is a Credit Score?
• Summary of credit report info represented as a single
number, based on a mathematical calculation
• FICO (Fair, Isaac, & Co.) most common score type
• FICO scores range from 300 – 850; the higher the
better
• Predict future payment history for creditors
• Scores are “fluid” – recalculated each inquiry

8. Credit Score Factors
• Payment History: 35%
• Amount Owned: 30%
• Length of Credit History: 15%
• New Credit: 10%
• Type of Credit Used: 10%
100%

9. Getting Credit Reports
• There are 3 credit bureaus and each has a credit score for
you (scores may be different)
• Equifax 800-685-1111 or www.equifax.com
• Experian 888-397-3742 or www.experian.com
• TransUnion 800-888-4213 or www.transunion.com
• ** For a free credit report, go to: www.annualcreditreport.com **

10. How to Use Your FICO
• If denied credit, ask lender for “score reasons”
• Up to 4 score reasons provided with your FICO that
explains why the score isn’t higher, such as:
• Number of accounts with delinquency
• Amount owed on accounts
• Too many accounts with balances
• Understanding these reasons can help improve your FICO over time

11. Credit Score Cautions
• Debt settlement and debt management plans may
hurt your credit for at least 2 years, especially to a
mortgage lender
• Once you’ve received a pre-approval from your
mortgage lender, it’s important not to make any
other credit purchases that could negatively impact
your score. This will be checked 2 days prior to
closing, and could impact your approval.

12. Credit Score Cautions
• Mortgage lenders now require a “soft pull”
credit inquiry (FICO score not pulled) to be
pulled upon submission of clear to close
conditions. If new debt has been obtained, the
loan file must be reevaluated thru AUS to
ensure compliance with DTI and borrower
eligibility requirements.

13. Credit Repair
• You cannot “repair” poor credit
• Derogatory credit remains on your report for up to 10 years
• Avoid paying for credit repair services guaranteeing to fix
poor credit
• You can correct inaccurate information
• Dispute incorrect credit information
• Update personal information
• You can improve credit behavior (limit credit lines & balances,
pay on time)

14. Credit Help
• American Consumer Credit Counseling:
• www.consumercredit.com
• 800-769-3571
• National Foundation for Credit Counseling:
• www.nfcc.org
• 800-388-2227

15. Social Media
• Monthly social media webinars geared solely toward
Realtors
– New topic every month
– Prize giveaways
– Q&A

16. www.guaranteedrate.com/agent

18. John Smith
Vice President of Mortgage Lending
P: ###.###.####
F: ###.###.####
John.Smith@guaranteedrate.com
www.guaranteedrate.com/johnsmith
NMLS: XXXXXX LO LIC: XXXX-XXXX-XXXXX-XXXX
Contact Us
NMLS (Nationwide Mortgage Licensing System) ID 2611 • Alabama Lic# 21566 • AK Lic#AK2611 • AR Lic#103947 - Guaranteed Rate, Inc. 3940 N Ravenswood, Chicago IL 60613 866-934-7283• AZ - Guaranteed Rate, Inc. - 14811 N. Kierland Blvd.,
Ste. 100, Scottsdale, AZ, 85254 Mortgage Banker License # BK-0907078 • CA - Licensed by the Department of Business Oversight, Division of Corporations under the California Residential Mortgage Lending Act Lic #413-0699 • CO- Guaranteed
Rate, Inc. Regulated by the Division of Real Estate, 773-290-0505 • CT - Lic #17196 • DE - Lic # 9436 • DC - Lic #MLB 2611 • FL-Lic# MLD618 • GA - Residential Mortgage Licensee #20973 - 3940 N. Ravenswood Ave., Chicago, IL 60613 • HI Lic#HI-
2611 • ID - Guaranteed Rate, Inc. Lic #MBL-5827 • IL - Residential Mortgage Licensee - IDFPR, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois, 60603, 312-793-3000, 3940 N. Ravenswood Ave., Chicago, IL 60613 #MB.0005932 • IN - Lic
#11060 & #10332 • IA - Lic #MBK-2005-0132 • KS - Licensed Mortgage Company - Guaranteed Rate, Inc. – License #MC.0001530 • KY - Mortgage Company Lic #MC20335 • LA - Lic #RML2866 • ME - Lic #SLM1302 • MD - Lic #13181 • MA –
Guaranteed Rate, Inc. - Mortgage Lender & Mortgage Broker License MC 2611 • MI - Lic #FR-0016637 & SR-0011899 • MN - Lic #MO 20526478 • MS –Guaranteed Rate, Inc 3940 N. Ravenswood Ave., Chicago, IL 60613-Mississippi Licensed
Mortgage Company, Lic # 2611 - • MO – Guaranteed Rate Lic # 10-1744 • MT Lic# 2611 • Licensed in NJ: Licensed Mortgage Banker - NJ Department of Banking & Insurance • NE - Lic #1811 • NV - Lic #3162 & 3161 • NH - Guaranteed Rate, Inc.
dba Guaranteed Rate of Delaware, licensed by the New Hampshire Banking Department - Lic # 13931-MB • NM - Lic #01995 •NY - Licensed Mortgage Banker—NYS Department of Financial Services- 3940 N Ravenswood, Chicago, IL 60613 Lic #
B500887• NC - Lic #L-109803 • ND - Lic #MB101818 • OH – Lic #MBMB.850069.000 and Lic #SM.501367.000 - 3940 N. Ravenswood Ave., Chicago, IL 60613 • OK - Lic # MB001713 • OR - Lic #ML-3836 - - 3940 N. Ravenswood Ave., Chicago, IL
60613 • PA - Licensed by the Pennsylvania Department of Banking and Securities Lic #20371 • RI – Rhode Island Licensed Lender Lic # 20102682LL, RI – Rhode Island Licensed Loan Broker Lic # 20102681LB • SC – Lic #-2611 • SD Lic# ML.04997 •
TN - Lic #109179 • TX - Lic # 50426 & Lic # 47207 • UT - Lic #7495184- • VT - Lic #LL6100 & MB930 • VA – Guaranteed Rate, Inc. - Licensed by Virginia State Corporation Commission, License # MC-3769 • WA - Lic #CL-2611 • WI - Lic #27394BA &
2611BR • WV – Lic #ML-30469 & MB-30098 • WY – Lic#2247