Educating The Consumer Public Forum Shared Pp 112608 Slide Show View Only
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Transcript of Educating The Consumer Public Forum Shared Pp 112608 Slide Show View Only
Educating the Consumer
Helping People Clean up their Credit
and Repair their
Financial Lives
Equifax $1.5 Billion
TransUnion$1.0 Billion
Experian$473 Million
Know Who You’re Dealing With
Annual Income $Fines $
Source: www.FTC.gov
Companies Who Review Your Credit
BanksMortgage LendersCredit Card CompaniesAuto Insurance CompaniesLandlords – Rental AgenciesPotential Employers
How Inaccurate Are They !
% Inaccurate
2002
2003
2004
70%
79%
100%
50%
• 2002 National Credit Retailer Assoc.
• -study found 20% of consumers are misclassified for sub-prime loans
• 2003 Federal Reserve Board
• 70% of credit reports contain inaccurate information
• 2004 MASSPIRG • 79% of all credit
reports are inaccurate
20%0%
1.2 Trillion$$$In Over Payments!
$ How Much Inaccuracies Cost $
If your FICO score is: Your interest rate is:...and your
monthly payment is
760-850 5.60% $1,731700-759 5.80% $1,773
660-699 6.10% $1,828
620-659 6.90% $1,988
580-619 9.30% $2,482
500-579 10.20% $2,694
$11,556 /Year!
What's a Credit Score ???
Credit score : numerical expression based on a statistical analysis of a person's credit files
Creditworthiness : the perceived likelihood that the person will pay debts in a timely manner.
Know Your Credit Scores
730 – 850 Excellent 729 – 680 Good
679 – 620 Fair
619 – 500 Poor
Below 500 NO Federal Financing
What Effects Your Credit Score?
35%
30%
15%
10%
10%Payment History
Amount Owed
Length of Credit History
New Credit
Types of Credit Used
How to Read Your Credit Report
Trade Lines Negative Trade Lines
Collections Public Records-----Bankruptcy-----Tax Liens-----Judgments
The 4 Sections
of a Credit
Report:
• Lack of Consumer Knowledge June 19th, 2007 U.S. House of
Representatives Committee on Financial Services
• Divorce• Loss of job• Illness• Mistakes made by Creditors
LIFE HAPPENS… It’s Not your Fault!
How to Keep Good Credit
Pay all bills TIMELY – NOT ON the Due DateKeep old accounts OPENLimit your credit to Mortgages, Auto
Loans and a few MAJOR Credit CardsResist opening new Credit Cards for the
10% discount at Department Stores
How to Increase Your Credit Scores
Dispute ALL negative trade lines to make the bureaus prove accuracy.
Obtained a Secured Credit Card – Use Responsibly
Request HELOCS to be reported as mortgages instead of revolving accounts.
Open revolving business accounts and transfer personal balances to them
Credit Cards BELOW 40% of available credit limit
40%
Credit Score Myths
Having multiple credit cards will improve your credit
Closing accounts will raise your scores
Paying off collections always raises scores
FALSE
FALSE
FALSE
Hire a Professional For Best Results
Call for a FREE Credit Review
STOP overpaying on: Mortgages, Car Loans, Credit Cards,
Insurance
LOWER your interest rates NOW!
Credit Reporting Agencies• TRANS UNION
PO BOX 4000CHESTER, PA 19016866-877-2673www.transunion.com
• EQUIFAX CREDITPO BOX 740241ATLANTA, GA 30374www.equifax.com
• EXPERIANPO BOX 2002ALLEN, TX 75013www.experian.com
Helping YOU Protect Your Credit Rights
