How To Improve Your Credit Score - Part 1 - Understand Credit

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Want to know how to improve your credit score? You're in the right spot. In terms of how to fix your credit, do it yourself credit repair is the best choice. This 4 part presentation will show you how to rebuild credit, how to raise your credit score, and even build credit from scratch. Learn about credit ratings, credit history, credit repair, what is a good credit score, what is a bad credit score, and so much more! - From Fix My Credit University

Transcript of How To Improve Your Credit Score - Part 1 - Understand Credit

  • Part 1 Understand Credit Copyright Fix My Credit University WWW.FIXMYCREDITU.COM
  • Why You Need Good Credit Identifying the need
  • Why Your Credit Score Matters Top 10 (in no particular order) Buying a home Renting an apartment Buying a car Interest rates Employment Starting a business Utilities Marriage Credit cards PIECE OF MIND
  • Understanding Credit Terminology
  • Credit Score Defined A three digit numerical value based on an assessment of ones credit health, typically by a credit bureau. Credit Score
  • Credit Grade Defined A value (A F) given to an individual which reflects their debt repayment patterns. Credit Grade
  • FICO Defined FICO provides analytics and decision making services, including credit scores, to help companies make complex financial decisions. FICO (Fair Isaac Corporation)
  • Credit Bureaus Defined Companies that collect data from multiple sources and provide consumer credit information to individual consumers. - Equifax - TransUnion - Experian Credit Bureaus
  • Credit Institutions Defined Companies that provide loans and lines of credit. - Banks / Credit Unions - Visa, Mastercard, AMEX, Discover, etc. - Student Loans / Auto Loans Credit Institutions
  • Credit Reporting Agencies Defined Companies that provide individual consumers and businesses with credit scores. - - ScoreSense - Credit Report Place Credit Reporting Agencies
  • Understanding Credit Basics
  • Credit Regulation Federal law (US Code Title 15, 1681c) is in control of the behavior of credit reporting agencies (CRAs). The specific law is entitled: the Fair Credit Reporting Act (FCRA).
  • Credit Bureaus Equifax Highlights opened and closed accounts TransUnion Contains a thorough employment history. Experian Shows when an account is set to fall off your credit report.
  • Credit Reporting Process FICO compiles analytics meant for other companies to use in decision making. Experian, TransUnion, and Equifax use these analytics to determine your credit score and grade. Credit reporting services use the data from Experian, TransUnion, and Equifax to provide you with your credit score.
  • Credit Score Factors Credit Score Payment History - 35% Amounts Owed - 30% Length of Credit History - 15% Types of Credit Used - 10% New Credit - 10%
  • Credit Grade A Open Credit Utilization Percent On Time Payments Average Age of Open Credit Lines Total Accounts Hard Credit Inquiries Derogatory Marks Credit Report Card A - F
  • Understanding Credit A Closer Look at Credit Grade Factors
  • Open Credit Utilization Available Credit Used Credit Grade / Score
  • Percent Of On Time Payments Credit History On Time Late
  • Average Age of Open Credit Lines Average Age of Open Credit Lines Open / Closed accounts How long theyve been open Number of cards
  • Total Accounts New lines of credit Average age of open credit lines
  • Hard Credit Inquiries Hard Credit Inquiries Credit Grade / Score
  • Derogatory Marks Derogatory Marks Late Payments Foreclosure Collections Bankruptcy Lien Civil Judgment
  • Understanding Credit A Closer Look at Credit Score Factors
  • Payment History Number of paid as agreed accounts Number of delinquent accounts Severity of the delinquent payments Recency of the delinquent payments
  • Amounts Owed Amount of credit being used Total available credit Below 30%
  • Length of Credit History Time Credit Repayment Higher Credit Score
  • Number of Inquiries on Your Credit More Credit Inquiries Worse Credit Score
  • Types of Credit Used Variety = Better Credit Score Credit Cards Store Credit Cards Loans
  • New Credit New Credit Cards Lowers Average Age of Open Credit Lines Lowers Credit Score / Grade
  • Understanding Credit Credit Score Categories
  • Credit Score Categories Excellent = 751 - 850 Good = 701 - 750 Fair = 641 - 700 Poor = 576 - 640 Very Poor = 300 - 575
  • Understanding Credit Debt vs. Income
  • Debt to Income Ratio Total Recurring Debt Gross Income Debt to Income Ratio Aim to be below 36%
  • Part 2 Action plans for fixing a credit score in disrepair.
  • If you want a guide to hold your hand through the process of fixing your credit score, check out Fix My Credit, Build My Credit. Save money on expensive credit repair services and do it yourself! WWW.FIXMYCREDITU.COM