Play the game of credit to better meet your personal and financial goals. Credit Scoring & Wealth the Game Carl Spiteri 6333 Greenwich Dr. Suite 200 San Diego, CA

What is the Game Object Rules Key Concepts Next Step Setting Up The Game Bad Poor Fair Good Great Excellent

Are you playing the game of credit? YesNo Do I have a choice whether to play or not? YesNo Will my performance playing the game have a financial impact? YesNo Can I know how well I’m playing the game today? YesNo Can I learn how to better play the game to win? YesNo Awareness of the Game 3

What is a Credit Score? A 3-digit number used to evaluate the risk associated with you. The most widely used credit scores are FICO scores, which were developed by Fair Isaac and Company, Inc. back in the 1960’s. Your FICO score is Between 350 and

What does your score mean? ScoreOdds Above to to to to to to to to to to to to to to to to to 1 Below 500 Forget it! Bad Poor Fair Good Great Excellent Statistical chance of you becoming 90 days late…

Key Concept 6 The game of credit is played individually. Couples use the lowest score for their team.

Borrowing mortgage auto credit college business Investments Life Insurance Auto Insurance Home Owners Insurance Utilities Cell Phone Electric Gas Credibility Employment Background Public Records Object of the Game 7 – achieve the highest possible credit score to minimize the overall cost of:

This is a Very Big Game 8 *80% of Americans have one or more errors on their credit report. *40% of Americans are paying a higher mortgage payment due to lower than necessary credit scores. *25% of Americans have credit report problems that would prevent them from securing a loan or new employment. *myfico.com, **invested at 8% net after tax Difference over 30 years in cost of same house: $1,084,981.68**

Key Concept 9 70% of your ability to access your money, is now tied to your Credit Score.

Does Not Affect Credit Score Education Years lived in a single location Income Late payments less than 30 days past due date Late utility payments (could hurt you if it becomes a collection) Bounced checks (could hurt you if it becomes a collection) Rent history (could hurt you if evicted or if it becomes a collection) Child support or alimony (unless you don’t pay on time) Age, race, religion, nationality, gender, or marital status Job occupation or employment history Inquiries you make into your credit report Inquiries an employer makes into your credit report

Does Affect Credit Score Account payment information Public records (judgments, liens, collections) Duration account is past due Amount that is past due Recency of past due items Number of delinquent items Number of accounts in good standing Amount you owe on all accounts Amount you owe on individual accounts Type of balance you carry Number of accounts with balances Utilization rate on revolving accounts Balance as % of original amount borrowed Average time accounts open Time since account opened Time since last activity Proportion of new to old accounts Number of inquiries Time since last inquiry Prior problems Mix of credit types

Key Concept 12 Knowing what does, and does not affect your credit score is a big part of playing the game.

The 22 Criteria Become 5 Rules 13

Key Concept 14 You can affect approximately 80% of your score by understanding 5 Simple Rules.

Fast Forward – First 80% 07/22/2008© Monarch Mortgage Company, Inc. – 2008 – All Rights Reserved 15 The Ideal Couple – 5 Simple Steps 35% Payment History – make all payments within 30 days of the due date. 30% Utilization Rate – keep all balances under 30% of their high credit limit. 15% Length of History – keep all accounts open and active for as long as possible. 10% – Types of Credit – keep at least five active accounts at all times. 10% – Inquiries – keep your private information private.

The Next Step… Order Credit Reports and Scores- You need to get a complete picture of where you are today. Verify the data being reported- it is your responsibility to verify the accuracy of the data on your report. Dispute any inaccurate information- contact the creditors and the bureaus to have errors on your report corrected. Develop a monitoring schedule going forward- guarantee your success! 16

Resources Opt Out- Do not Call Equifax Experian Trans union