Presented by: Presented by:

www.www.I Clean I Clean UUgly gly Credit.comCredit.com

Credit Tips

Three Major Credit Bureaus

Creditor PAYS to reportCustomer Information

Experian TransUnion Equifax

Not all Creditors report to all three Credit Bureaus

What is FICO?– Fair Isaac Corporation– Developed in 1989– Gold Standard Measure of Risk– Ranges from 300 to 850– Median Score is 720

www.ICleanUglyCredit.Com

Our FICO Scores Affect:• Interest Rates

– Mortgage Loans– Credit Cards– Auto loans

• Ability to Obtain Housing (Rental or Lease)

• Insurance Rates• Employment• How People View Us

A 2005 Congressional Study

Results of Study

– 70 – 90% of ALL Credit Reports have ERRORS!

– 15 – 25% of Errors are Significant Enough to Cause Credit to be DENIED!

Cost of Bad Credit

$20,000 Car Loan Paid over 5 years

Score Interest Payment

720 or higher 4.9 % $377.00

579 or lower 29.0 % $635.00

$258.00 more each month

www.ICleanUglyCredit.Com

Cost of Bad Credit

30 Year Mortgage

Score Interest Payment

720 or higher 6.081% $1081 P&I

599 or lower 10.582% $553 MORE each month

• These facts were gathered from the Experian National Score Index (September 2008)

• These credit score facts are based on information compiled from a large database of credit scores in the United States. 

Let’s look at some Statistics…

Credit Scores Below the National Average of 680*

Texas 651California 672Nevada 655Florida 673Arizona 659Colorado 674New Mexico 663Alaska 674Louisiana 663Indiana 676South Carolina 665

Oklahoma 666Washington DC 677North Carolina 667Kentucky 677Alabama 676 West Virginia 679Georgia 668Tennessee 679Arkansas 668Michigan 679 Mississippi 668

Statistics from 2008 Money-Zine.com

Credit Scores at or Above the National Average

Rhode Island 692Kansas 682New Jersey 693Utah 683Connecticut 694Missouri 683Nebraska 695Illinois 684Pennsylvania 696Delaware 684Wisconsin 699Ohio 685Maine 699Oregon 686Iowa 700

New York 686Montana 701Maryland 688New Hampshire 703Idaho 688Massachusetts 703Hawaii 688Vermont 706Virginia 689North Dakota 706Wyoming 690Minnesota 707Washington 691South Dakota 710

What affects your credit score?

• 35% Payment history• 30% Amounts owed• 15% Length of credit

history• 10% Inquiries- New Credit• 10% Types of credit used

Paymentt History

35%

Amounts Owed30%

Types 10%

New 10%

Credit History

15%

Balances Carried – 30%

• Keep balances at 30% or less• Outstanding Balance vs. available

credit affects score• Mortgage / Installment loans are less

of factor

Payment History- 35%

• Bills Paid as agreed• Most Recent 6 months• Highest weight is on longest

delinquency

Credit History – 15%

• Longer credit history = Higher credit score

• Long credit history of paid as agreed positive impact to credit score

• Try not to close credit accounts – Especially if long history

Mix of Accounts – 10%• Ideal to have installment & revolving

accounts• Mortgage Loan• Auto Loan• 3 – 5 credit cards (more is okay)• HELOC should be greater than $40K or will

report as revolving account vs. mortgage.

Inquires -10%• Shopping around?

– Make sure that multiple reports for mortgage and auto are within a short period of time

– Each inquiry can average 5-8 points

Inquiries that do not hurt the score:

• Job related• Insurance / Utilities• Account Review• Personal (www.annualcreditreport.com)

and obtain free credit report• Promotional (pre-approved offers in the

mail).

Credit Myths and Facts1. Canceling or closing credit

cards/accounts boosts my score.2. Credit scores are locked in for six

months.3. I don’t need to check my credit

report if I pay my bills on time.4. All credit reports are the same.

5. A divorce decree automatically severs joint accounts.

6. All negative remarks come off in seven years.

7. If you already have bad credit, then your credit scores will suffer for seven years.

8. Check Cards (debit cards) can help your credit scores.

Things YOU can do….• Review your credit BEFORE you need

it!• www.annualcreditreport.com• Pay your bills on time….NEVER late• Keep balances on credit cards limited

to no more than 30% of credit limit• Do not close accounts• Limit the number of inquiries• Show a “variety of types of credit”

Be a “Hero”give a referral….

**Note: Ask CPA or tax preparer about write-off

More $$$ in Your Pocket !!

• Sponsor a free Basic Credit & Budget Workshop

• Home Buyer Seminar- turning renters into buyers

• Webinars• Consultation is only $29.00• Helps with Lease Option Clients• Build your list of “buyers” by referrals

How much is the credit program?

• $375 for six months • ($100 for each additional person

at same address)• Or Two payments of $200• Or Setup fee of $175 and four

monthly payments of $69 ($451)

We wish to sincerely thank you for your

time and this opportunity !

I Clean Ugly CreditDebbie and Nancy

THANK YOU…….

Nancy

Debbie

www.ICleanUglyCredit.Com

Contact:

I Clean Ugly Credit:

www.ICleanUglyCredit.com

480-219-6557 office

877-369-5182 toll free

Email: info@ICleanUglyCredit.com