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Your Credit Score
Your credit score is a number between 300-850 that indicates your credit worthiness, financial reputation and potential risk to lenders
The credit bureaus calculate higher scores for consumers that have at least 2-3 active credit cards plus installment loans and a mortgage
A good credit score will help you achieve your financial dreams and goals
The credit bureaus calculate higher scores for consumers that have at least 2-3 active credit cards plus installment loans and a mortgage
A good credit score will help you achieve your financial dreams and goals
5 Easy Steps To Maximize Your Credit Score
1) Payment History - pay on time every month
2) Capacity and Amount Owed - use 25% or less of your approved credit limit (utilization ratio)
3) Length of Credit - keep your oldest accounts open
4) New Credit - only apply for new credit once a year
5) Types of Credit - have credit cards, installment loans and a mortgage in your name
2) Capacity and Amount Owed - use 25% or less of your approved credit limit (utilization ratio)
3) Length of Credit - keep your oldest accounts open
4) New Credit - only apply for new credit once a year
5) Types of Credit - have credit cards, installment loans and a mortgage in your name
A Higher Credit Score Can Save You Thousands of Dollars
RECEIVE LOWER INTEREST RATES, HIGHER CREDIT LIMITS, LONGER REPAYMENT PERIODS AND LOWER FEES FOR
Real estate, autos, credit cards, student loans, refinancing and more
OTHER BENEFITS
Potential employers prefer applicants with good credit when background checks are required
Landlords give first preference to applicants with good credit
Utility companies waive security deposits
Insurance companies offer better rates
And so much more!
Real estate, autos, credit cards, student loans, refinancing and more
OTHER BENEFITS
Potential employers prefer applicants with good credit when background checks are required
Landlords give first preference to applicants with good credit
Utility companies waive security deposits
Insurance companies offer better rates
And so much more!
SOMEONE WITH A LOW CREDIT SCORE
May be denied when applying for credit cards and other types of financing
May require higher down payments before being approved
May be charged higher interest rates
May lose a good job opportunity
BOTTOM LINE
SOMEONE WITH A LOW CREDIT SCORE WILL PAY MORE...FOR EVERYTHING
Bad credit requires spending more money to pay off debt, due to higher interest rates
Debt reduces your savings, investments, college funds, retirement fund and the amount of money available for everyday expenses
May be denied when applying for credit cards and other types of financing
May require higher down payments before being approved
May be charged higher interest rates
May lose a good job opportunity
BOTTOM LINE
SOMEONE WITH A LOW CREDIT SCORE WILL PAY MORE...FOR EVERYTHING
Bad credit requires spending more money to pay off debt, due to higher interest rates
Debt reduces your savings, investments, college funds, retirement fund and the amount of money available for everyday expenses
Financial Mistakes Can Have A Negative Impact
***The following mistakes can significantly lower your credit score***
Maxing out the full amount available
Making a payment 30 days late
Debt settlement
Foreclosure
Bankruptcy
Maxing out the full amount available
Making a payment 30 days late
Debt settlement
Foreclosure
Bankruptcy
Different Types of Credit Scores
There are many different types of credit scores including FICO and VantageScore
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FICO and VantageScore use different criteria and each scoring model is updated periodically
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These examples for FICO and VantageScore are for educational purposes only. Please request personalized financing details from your lender.
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Credit Monitoring
Credit monitoring is a powerful tool for your financial health
Credit monitoring provides monthly updates from the 3 major credit bureaus and is billed separately by the service provider ($20-$35/mo)
Both FICO score and VantageScore are available
Both FICO score and VantageScore are available
A FICO score is usually required for major purchases including mortgages and autos
VantageScore is available for overall financial health and is usually sufficient for other types of financial goals
Your Credit Scores May Be Different
The 3 major credit bureaus include Equifax, Experian and TransUnion
Some credit furnishers only report to 1 or 2 of them, which results in different credit scores from each bureau
Some credit furnishers only report to 1 or 2 of them, which results in different credit scores from each bureau
Your Credit Reports May Have Errors
ACCORDING TO A RECENT STUDY BY THE FEDERAL TRADE COMMISSION
Many credit reports have errors on them
Some of those errors are serious enough to negatively impact your credit score
Each credit bureau may have different errors, which also contributes to different scores
Many credit reports have errors on them
Some of those errors are serious enough to negatively impact your credit score
Each credit bureau may have different errors, which also contributes to different scores
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Credit 101
Knowledge Is Power
A credit score...
indicates your credit worthiness |
Having good credit...
can save you thousands of dollars |
Avoid financial mistakes...
that lower your credit score |
