The document provides information on credit basics, debt-to-income ratios, the 5 Cs of credit, establishing credit, improving credit, managing debt, and getting ready to apply for credit. It discusses key credit concepts such as credit reports, credit scores, debt-to-income ratios, and the components that make up good credit. It offers tips for establishing credit as a beginner, improving an existing credit profile, managing debt through options like consolidation, and steps to take before applying for new credit.

1. The information in this presentation is provided for educational purposes only.
© 2020 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. For public use. NMLSR ID 399801 CP5238480 Material expires 03/31/2021
Wells Fargo At WorkSM
Let’s talk credit
Robyn Hill
Campus Program Manager
Materials are accurate as of February 24, 2021. After this date, please contact your Program
Manager to find out what might have changed and to learn how to obtain current information.

2. Topics
2
• Credit basics 03
• Debt-to-income (DTI) ratio 08
• The 5 Cs of Credit 15
• Establishing credit 21
• Improving your credit 24
• Managing your debt 31
• Getting ready to apply 38
Information provided for educational purposes only. Wells Fargo is not a credit counseling organization, and our bankers
are not certified and trained as credit counselors.

3. Credit basics
3

4. Credit basics
4
• Credit report — A detailed list of your credit history.

5. Credit basics
5
• Credit report — A detailed list of your credit history.
• Credit score — A representation of how responsible
you’ve been with credit.

6. Credit basics
6
• Credit report — A detailed list of your credit history.
• Credit score — A representation of how responsible
you’ve been with credit.
Credit score components

7. Credit basics
7
• Credit report — A detailed list of your credit history.
• Credit score — A representation of how responsible
you’ve been with credit.
Wells Fargo credit score standards

8. Debt-to-income (DTI) ratio
8

9. Debt-to-income (DTI) ratio
9
• A comparison between how much you owe each
month and how much you earn.

10. Debt-to-income (DTI) ratio
10
• A comparison between how much you owe each
month and how much you earn.
• Monthly debt payments ÷ monthly pretax income.

11. Debt-to-income (DTI) ratio
11
• A comparison between how much you owe each
month and how much you earn.
• Monthly debt payments ÷ monthly pretax income.
DTI example
Based on $5,000
monthly income,
with $1,500 in
monthly debt
payments.

12. Debt-to-income (DTI) ratio
12
• A comparison between how much you owe each
month and how much you earn.
• Monthly debt payments ÷ monthly pretax income.
DTI example
Based on $5,000
monthly income,
with $1,500 in
monthly debt
payments.

13. Debt-to-income (DTI) ratio
13
• A comparison between how much you owe each
month and how much you earn.
• Monthly debt payments ÷ monthly pretax income.
Wells Fargo DTI standards

14. Debt-to-income (DTI) ratio
14
• A comparison between how much you owe each
month and how much you earn.
• Monthly debt payments ÷ monthly pretax income.
Wells Fargo DTI standards

15. The 5Cs of credit
15

16. The 5Cs of credit
16
1. Credit history — Your track record of managing
credit and making payments over time.

17. The 5Cs of credit
17
1. Credit history — Your track record of managing
credit and making payments over time.
2. Capacity — Your ability to comfortably manage
your payments.

18. The 5Cs of credit
18
1. Credit history — Your track record of managing
credit and making payments over time.
2. Capacity — Your ability to comfortably manage
your payments.
3. Collateral — Something you own that you may
pledge to secure a loan.

19. The 5Cs of credit
19
1. Credit history — Your track record of managing
credit and making payments over time.
2. Capacity — Your ability to comfortably manage
your payments.
3. Collateral — Something you own that you may
pledge to secure a loan.
4. Capital — Savings, investments, and other
assets that you could use to repay a loan if
you experience a financial setback.

20. The 5Cs of credit
20
1. Credit history — Your track record of managing
credit and making payments over time.
2. Capacity — Your ability to comfortably manage
your payments.
3. Collateral — Something you own that you may
pledge to secure a loan.
4. Capital — Savings, investments, and other
assets that you could use to repay a loan if
you experience a financial setback.
5. Conditions — The economic environment
and how you plan to use the funds.

21. Establishing credit
21

22. Establishing credit
22
Lay the foundation for good credit
• Pay your bills on time every time.
• Open a checking account and use
your debit card responsibly.
• Build a savings account.

23. Establishing credit
23
Lay the foundation for good credit
• Pay your bills on time every time.
• Open a checking account and use
your debit card responsibly.
• Build a savings account.
Ways to get started
• Consider gasoline and retail credit cards.
• Become an authorized user on a trusted
person’s credit card.
• Apply for a loan with a co-borrower or co-applicant.
• Charge only what you can afford.
• Avoid maxing out your credit accounts.

24. Improving your credit
24

25. Improving your credit
25
• Check your credit report — Visit AnnualCreditReport.com
or call 1-877-322-8228.

26. Improving your credit
26
• Check your credit report — Visit AnnualCreditReport.com
or call 1-877-322-8228.
• Be responsible — Make consistent on-time payments.

27. Improving your credit
27
• Check your credit report — Visit AnnualCreditReport.com
or call 1-877-322-8228.
• Be responsible — Make consistent on-time payments.
• Be consistent — Practice healthy credit habits.

28. Improving your credit
28
• Check your credit report — Visit AnnualCreditReport.com
or call 1-877-322-8228.
• Be responsible — Make consistent on-time payments.
• Be consistent — Practice healthy credit habits.
• Keep your balances low — Using as little of your available
credit as possible reflects responsible use of your credit limit.

29. Improving your credit
29
• Check your credit report — Visit AnnualCreditReport.com
or call 1-877-322-8228.
• Be responsible — Make consistent on-time payments.
• Be consistent — Practice healthy credit habits.
• Keep your balances low — Using as little of your available
credit as possible reflects responsible use of your credit limit.
• Stabilize your situation — Set a budget and make at least
the minimum payments on time for each account.

30. Improving your credit
30
• Check your credit report.
• Be responsible.
• Be consistent.
• Keep your balances low.
• Stabilize your situation.
Sample monthly payments based on credit score
Scenario is hypothetical — provided for illustration only.

31. Managing your debt
31

32. Managing your debt
32
• Consider debt consolidation.*
* Important information about debt consolidation: Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating
multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan
term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you’ll be in a
better position to decide if it is the right option for you. New credit accounts are subject to application, credit qualification, and income verification.

33. Managing your debt
33
• Consider debt consolidation.*
• Pay off debt faster by refinancing to a shorter term.
* Important information about debt consolidation: Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating
multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan
term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you’ll be in a
better position to decide if it is the right option for you. New credit accounts are subject to application, credit qualification, and income verification.

34. Managing your debt
34
• Consider debt consolidation.*
• Pay off debt faster by refinancing to a shorter term.
• Lower your monthly payments to help free up cash.
* Important information about debt consolidation: Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating
multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan
term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you’ll be in a
better position to decide if it is the right option for you. New credit accounts are subject to application, credit qualification, and income verification.

35. Managing your debt
35
• Consider debt consolidation.*
• Pay off debt faster by refinancing to a shorter term.
• Lower your monthly payments to help free up cash.
• Pay off your most expensive loan first.
* Important information about debt consolidation: Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating
multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan
term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you’ll be in a
better position to decide if it is the right option for you. New credit accounts are subject to application, credit qualification, and income verification.

36. Managing your debt
36
• Consider debt consolidation.*
• Pay off debt faster by refinancing to a shorter term.
• Lower your monthly payments to help free up cash.
• Pay off your most expensive loan first.
• Know your limits.
* Important information about debt consolidation: Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating
multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan
term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you’ll be in a
better position to decide if it is the right option for you. New credit accounts are subject to application, credit qualification, and income verification.

37. Managing your debt
37
• Consider debt consolidation.*
• Pay off debt faster by refinancing to a shorter term.
• Lower your monthly payments to help free up cash.
• Pay off your most expensive loan first.
• Know your limits.
Sample borrowing costs based on the length of the loan
Scenario is hypothetical — provided for illustration only.
* Important information about debt consolidation: Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating
multiple debts means you’ll have a single monthly payment, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan
term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you’ll be in a
better position to decide if it is the right option for you. New credit accounts are subject to application, credit qualification, and income verification.

38. Getting ready to apply
38

39. Getting ready to apply
39
 Identify your financial goals.

40. Getting ready to apply
40
 Identify your financial goals.
 Know your credit score — your current bank or lender may
provide access.

41. Getting ready to apply
41
 Identify your financial goals.
 Know your credit score — your current bank or lender may
provide access.
 Check your credit report for accuracy and dispute any errors.

42. Getting ready to apply
42
 Identify your financial goals.
 Know your credit score — your current bank or lender may
provide access.
 Check your credit report for accuracy and dispute any errors.
 Calculate your debt-to-income (DTI) ratio at
wellsfargo.com/debtratio.

43. Getting ready to apply
43
 Identify your financial goals.
 Know your credit score — your current bank or lender may
provide access.
 Check your credit report for accuracy and dispute any errors.
 Calculate your debt-to-income (DTI) ratio at
wellsfargo.com/debtratio.
 Explore credit information, tips, tools, and options at
wellsfargo.com/smartercredit.

44. Getting ready to apply
44
 Identify your financial goals.
 Know your credit score — your current bank or lender may
provide access.
 Check your credit report for accuracy and dispute any errors.
 Calculate your debt-to-income (DTI) ratio at
wellsfargo.com/debtratio.
 Explore credit information, tips, tools, and options at
wellsfargo.com/smartercredit.
 Talk to a banker.

45. Thank you
Make an appointment with a banker and
visit wellsfargo.com/smartercredit.