How to fix improve and protect your credit score Why is it important FICO Scores are your credit rating Most lenders base approval upon them Higher scores means better credit lower interest rates and lower payments ID: 714037
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Slide1
Manage
Your Credit Report – and Save!
How to fix, improve and protect your credit scoreSlide2
Why is it important?
FICO Scores are your credit ratingMost lenders base approval upon themHigher scores means better credit, lower interest rates and lower payments
Higher scores also mean frequent limit increase and higher credit limits
Bottom line: It means more money to your pocket and more security when you need it!Slide3
FICO Score and Delinquency RatesSlide4
FICO Score Distribution
FICO Credit
Scores
Percent
with Score
Classification
300 - 499
2%
Subprime
500 - 5495%Subprime550 - 5998%Subprime600 - 64912%Depends650 - 69915%Depends700 - 74918%Prime, best rate750 - 79927%Prime, best rate800 - 85013%Prime, best rate
Note: Best rates are available to good FICO scores consumers, people who score 720 or above. Approximately, 50% of American public scores 720 or above. Slide5
Example: Good Credit Saves You Money
Note: Difference:
$24 per month
between high and low FICO scores.
Equivalent savings on mortgage loans: $100,000 in Florida = $160 /
mth
$400,000 in California = $640/
mth
FICO Score
APRMonthly Payment760-8505.675$287.73700-7595.897$289.27660-6696.181$291.26620-6596.991
$296.95
580-619
9.024
$311.55
Higher the FICO score translates to lower interest payment
Example: $15,000 Car Loan, 60 monthsSlide6
Five Determining Factors of FICO Scores
Your Payment History (35%)How much you owe (30%)
How long you have had credit (15%)
Your last application for credit (10%)
The types of credit you use (10%)