By Your Name

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Your Credit Score

• By Your Name
• Your Company Name
• Date

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What is a Credit Score?

• A 3-digit number used by lenders to evaluate the
  risk associated with lending you money
• It is generated by a mathematical model created
  by Fair Isaac Company in the 1950s.
• There are 3 Major Credit Bureaus, Equifax,
  Experian and Trans Union You have 3 Scores
• Scores range from 350-850

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What is a Good Score?

• Above 720 Excellent
• Good
• Fair
• Below 620 Poor

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The Cost of Bad Credit
HOW MUCH WOULD YOUR MIDDLE SCORE COST YOU IN A
MORTGAGE LOAN TRANSACTION AT TODAYS RATES?
Home Financing A 30-Year Fixed with a loan
principal amount of 359,650
FICO Score APR Rate Monthly Payment Interest Paid
Above 720 5.688 2085 390,833
620-719 5.813-7.501 2113-2515 401,115-545,750
Below 620 8.531-9.289 2,773-2,969 638,739-709,162

• If your score improves to 720-850, you could save
  an additional 318,329
• If your score improves to 700-719, you could save
  an additional 308,047
• If your score improves to 675-699, you could save
  an additional 263,094
• If your score improves to 620-674, you could save
  an additional 163,422

A borrower who increases his or her credit score
from 620 to 720 can potentially save 884 per
month on mortgage payments, 10,608 per year, and
approximately 318,329 over the life of the
30-year loan.
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Five Factors of Credit Scoring
Payment History Late Pays Collections Charge-Offs
Repossessions Foreclosures Tax Liens BKs Judgment
s
Length of History
New Credit Soft Inquiries Hard Inquiries
Types of Credit Used A Mortgage Loan An Auto
Loan 2-3 Major Credit Cards
Amounts Owed Credit Cards Mortgage Loans Auto
Loans HELOCs Installment Loans
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1. Payment History 35 How do you pay your
bills?
WHAT YOU SHOULD KNOW

• A recent
• Paying a collection
• Being past due
• Derogatory accounts do NOT
• A divorce decree

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2. Amounts Owed 30 Managing Your Debt
WHAT YOU SHOULD KNOW

• New debt
• Keep balances below
• When preparing to
• Dont consolidate
• If you go over the limit on your credit card
• HELOCs
• Do not close credit cards EXCEPT
• USE YOUR CREDIT CARDS or

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3. Length of History 15 4. Mix of Credit 10
WHAT YOU SHOULD KNOW

• Hold onto
• New credit users
• The best mix of credit is
• The type of credit card matters because
• The best amount of credit cards to have is

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5. Inquiries 10
WHAT YOU SHOULD KNOW

• Soft vs. Hard Inquiries
• 14 Day
• Inquiries affect the score
• Inquiries can cost between
• You are Pre-Approved means

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START IMPROVING YOUR CREDIT SCORES TODAY!
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Contact Us
Your Company Name Address Phone Fax URL Email