Financial Wellness coordinator EMERGE Community Development To Your Credit Credit Reports and Credit Scores Credit Scores vs Credit Reports FICO Score Equifax Trans Union Experian Vantage ID: 714059
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Presented by:Gina DeNardo Financial Wellness coordinatorEMERGE Community Development
To Your Credit: Credit Reports and Credit ScoresSlide2
Credit Scoresvs.Credit ReportsFICOScore
Equifax
Trans Union
Experian
Vantage
ScoreSlide3
What is a Credit Score for?Your credit score is an indicator of your creditworthiness. This number was designed to indicate how likely the borrower is to repay a loan Slide4
What Credit Scores are used forGood credit helps withPurchasing a homePurchasing a carIt may be checked byLandlords
*Potential employersInsurance companiesCell phone companies
Utility companiesSlide5
How Credit Scores are determinedLike a GPA, a credit score is a cumulative number that measures your success relative to others, in this case grading you as a credit-worthy individual. This number is based on information listed on your credit report.. Slide6
What Makes Up A Credit Score35%Slide7
VantageScoreGradeCredit Risk900-990ASuper Prime801-900B
Prime Plus701-800
C
Prime
601-700
D
Non-Prime501-600FHigh Risk
FICO Score
Credit
Risk
800+
Exceptional
740-799
Very Good
670-739
Good
580-669
Fair
579 & Lower
Poor
Remember, no score is ever hard and fast. Lenders often tweak scoring algorithms to fit their business models. Slide8
What is the average Credit Score?Vantage Score breaks it down:Mankato, Minnesota — 706Rochester, Minnesota — 705Minneapolis, Minnesota. — 704FICOThe national average FICO score is at an all-time high at 695, compared to 688 in October 2005. Slide9
What is included in the score and what is notYesCredit CardsAuto/Personal Loans
Mortgages
Late payments
Collections/Judgements
Liens
Bankruptcy
NO
Gender/Race/Age
Income
Utilities
Insurance
Rent payments
Employers
Payday & Title LoansSlide10
How to read a credit report4 main categories:
Personal ID Info
Public Records
Credit Accounts
Inquiries Slide11
How can I get a better score?GET THE GOOD STUFF GOING!Pay your bills on timeMaintain balances at 30% or lower than available creditApply for traditional credit (including credit cards or bank loans).Dispute incorrect informationPay off negative accounts Slide12
How To Dispute an item on my reportCan be done on-line or by mailIf you dispute something, the creditor has 30 BUSINESS days to confirm the debt.If they can’t, the information needs to be taken off your report. Slide13
How can I get a free Credit Report?www.AnnualCreditReport. comIf you have been denied a:Credit cardLoanInsuranceJobHousingYou should receive a letter explaining how to get your free report.Slide14
“Free” Credit ScoreOften they give you a Vantage score, not your FICO score.If they ask for your bank/credit card information they may be signing you up for a monthly service that you will be paying for!Only use these sites if you are comfortable having them share your information with other companies!Slide15
Credit Bureau update:Equifax Breach this summer: Hackers accessed people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. They also stole credit card numbers for about 209,000 people and dispute documents with personal identifying information for about 182,000 people. What can you do?https://www.equifaxsecurity2017.com/potential-impact/More information: https://www.equifaxsecurity2017.com
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Questions?Gina DeNardoFinancial Wellness ManagerEMERGE Community DevelopmentDeNardoG@EMERGE-MN.org