©2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. The Great Numbers Game What you really need to know about credit scores that no one else is telling you

2 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. CREDIT SCORE Would the real credit score please stand up? S  Credit Union Risk Model  Telecommunications Energy and Cable Risk Model  FICO Classic Model – V.2  FICO Classic Model – V.3  FICO Auto Score  FICO Mortgage Score  FICO ‘08  VantageScore – V.1  VantageScore – V.2  Experian Auto Risk Model  Bankruptcy PLUS  Experian National Risk Model  Scorex PLUS

3 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Credit reporting company Where do credit scores come from? Credit score model Lender Credit report Credit score model Credit report Credit score

4 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Where do credit scores come from? Credit reporting company Lender Mortgage reporting company Credit report Credit score model Application data Credit report Credit score

5 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Where do credit scores come from? Credit reporting company Lender Credit report Credit score model Credit report Credit score

6 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Getting your credit score: Dodd-Frank Risk-Based Pricing Notice  Notice contains educational information for consumers to better understand credit reports and how they are used to make lending decisions  Notice may be provided verbally, electronically or in writing

7 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Getting your credit score: Dodd-Frank Risk-Based Pricing Notice Ruling enables lenders to issue a Credit Score Disclosure to ALL consumers ► Consumers will receive: ● Score used to set the material terms ● Corresponding national score distribution – output in a graphical or text format ► Two versions: mortgage and general ● Must be in writing and in a form that the consumer can keep

8 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Dodd-Frank Act Credit Score disclosure requirements Which national scores will be available through Experian disclosure service?  VantageScore ®  Scorex PLUS SM (new and existing)  National Risk Model  National Equivalency Score  Telecommunications, Energy and Cable Risk Model SM  Experian ® /FICO ® Risk Model v2 and v3 (and four industry options)  Experian ® /FICO ® Risk Model v08 (and two industry options )  Experian ® /FICO ® Advanced Risk Score v1 and v2  Experian ® /FICO ® Bankruptcy Score

9 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Getting your credit score: When you order your credit report  When you request your free annual report  Credit monitoring services  Directly from the credit reporting company  Fee depends on the service  Score and factors alone typically under $10

10 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. What goes into a credit score? VantageScore SM Repayment behavior (satisfactory, delinquency, derogatory) Percentage of credit amount used/owed on accounts Amount of recently reported balances (current and delinquent) Length of credit history and types of credit Number of recently opened credit accounts and credit inquiries and other recent account activity Amount of credit available

11 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. VantageScore SM The Scale: A : 900 – 990Super prime B: 800 – 899Prime plus C: 700 – 799Prime D: 600 – 699Non-prime F: 501 – 599High risk

12 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. How do I improve my credit scores? Risk factors are the key  Generated when a risk score is calculated  Tell the consumer what to address in their credit history to become more creditworthy  Are largely consistent from model to model  Are usually included in or described in an adverse action notice  Experian provides risk factors to consumers with the scores it provides through its direct-to-consumer services

13 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Credit reporting companies are like libraries Credit reporting company clients check out information … … If they have a permissible purpose under the law

14 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Should your really care about the number? It’s the credit report that really matters!  Identifying information  Account information  Public record information  Inquiries  Dispute instructions

15 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Centralized source for free reports  One every twelve months  Single contact point ► Telephone ► Mail ► Internet  Fee for credit score disclosure

16 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Resources  Free annual FACT Act credit report   Access to free report from each of the three credit reporting companies  Experian   Ask Experian advice column, sample consumer report, frequently asked questions  Experian Credit Educator: Experian Credit Educator  Personalized review and guidance about your credit report and score by an Experian professional for a nominal fee.  ProtectMyID.com ProtectMyID.com  Service that monitors credit report and other sources to provide early alert to identity theft and services to aid in rapid recovery   Access to credit monitoring and unlimited Experian credit reports and scores

17 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public.