“ understanding credit”

“Understanding Credit”

Presented by: Sulie Richardson

Learning Goals• Why use credit?• Who wants to see report & why• Understanding the credit reporting system• What’s in your credit report• How to dispute inaccurate information• What makes up your credit score• How to fix bad credit

What is Credit?

Have a written spending plan

Track your spending

Live within your means

Credit Reporting System

Consumer CreditorCredit Bureaus

Who wants to see your credit report?

Understanding your credit report

Reviewing your credit report

• Information is collected from creditors and public records

• Disputing inaccurate information– 30 days to investigate and communicate

Note: There are no quick fixes to repairing credit…

Other considerationsIdentity Theft VictimConsolidate debtsReduce unwanted credit card solicitations

(optoutprescreen.com or call 888-5-opt-out)

Credit Repair Clinics

Credit Score

www.myfico.com

New credit Amount Owed to creditors

Length of credit history Payment history

Types of credit currently in use

30%35%

15% 10%

10%

Savings secured loan

Pay creditors

Make payments on time

Pay down credit cards and the revolving loans

Grow your credit score…

Secured credit

card

Expensive Credit

Refund anticipation loansRent-to-ownCar title loans

Beware of co-signing

Questions & Comments!

Thank you!