The document discusses the importance of good credit, including its benefits like convenience and lower living costs, and reasons for credit denial such as insufficient income or derogatory history. It explains different types of credit, credit scoring, and the factors that influence scores, alongside strategies for building wealth and managing debt effectively. The document emphasizes the importance of financial planning, avoiding minimum payments, and the long-term benefits of strong credit management.

1. Money Wise CreditFrom debt to wealth

2. Benefits of good creditConvenience and emergency protection for unexpected disastersAllows budget flexibilityCan help lower your overall cost of living by making you eligible for best rates on insurance, interest, etc.

3. Why you may be denied creditLack of Credit References

4. Insufficient Income

5. Too short a period of residency or employment

6. Derogatory Credit history

7. Too many Inquiries

8. Overextended with Credit

9. NSF ChecksTypes of creditSecured = Credit backed up by savings or deposit equal to the amount of debtUnsecured = Most credit, gas, and retail cardsInstallment = Fixed amount, fixed term, fixed simple interestRevolving = Variable amount, undetermined term, variable monthly payment

10. 1-800-685-1111www.equifax.com EquifaxPO Box 740123Atlanta, GA 30374-01231-800-888-4213www.transunion.comTransunionPO Box 2000Chester, PA 190221-888-397-3742www.experian.com Experian475 Anton Blvd.Costa Mesa, CA 92626www.annualcreditreport.com1-877-322-8228 Annual Credit Report Request ServicePO Box 105283Atlanta, GA 30348-5283How to obtain credit reports & scores

11. What is credit scoring?A numerical score between 300-850Determines if credit is granted, the amount offered, and interest rateBill payment history, number and types of accounts, late payments, collection actions, outstanding debt and age of accounts are all factors in assigning a credit score

12. Determining credit scoresAn individual’s data is compared to consumers with a similar profile and a score is assigned based on factors that predict who is most likely to repay a debt

13. Credit scoring at a glance

14. Credit score guidelinesEach time a consumer’s credit information is accessed an “Inquiry” is added onto the credit report

15. The inquiry shows who accessed the credit report and the date of that action

16. Inquiries stay in a credit file for 2 yearsCredit score guidelines (cont’d)Negative account information will be reported for 7 years