1. © 2006 Consumer Jungle Credit Scores & Reports

2. © 2006 Consumer Jungle Why Credit is Important FICO or credit score: Credit Card Issuers & Lenders –Determine APR Auto Insurers – Determine Premium Employers – Are you a worthy hire? Landlords –Are you a reliable tenant?

3. © 2006 Consumer Jungle Credit / FICO Score Fair Isaac Company Range between 300 & 850 U.S. Median: 723 < 620 = sub prime > 760 = best rates

4. © 2006 Consumer Jungle The Cost of Borrowing Your Credit score: Your interest rate: Your monthly payment: 760 - 8506.13%$1,313 700 - 7596.35%$1,344 680 - 6996.53%$1,369 660 - 6796.74%$1,400 640 - 6597.17%$1,462 620 - 6397.72%$1,543

5. © 2006 Consumer Jungle

6. 35% Payment History Late payments have the greatest negative impact. Recency & frequency are important too.

7. © 2006 Consumer Jungle 30% Outstanding Balances Total balance vs. total available credit. Are you overextended?

8. © 2006 Consumer Jungle 15% Length of Credit History Number of years youve used credit. How long since youve used certain accounts.

9. © 2006 Consumer Jungle 10% New Credit Number of new accounts. Multiple requests reduce your score.

10. © 2006 Consumer Jungle 10% Types of Credit Mix of: –Revolving Credit Credit cards –Installment Credit Car loan Home loan

11. © 2006 Consumer Jungle How to Improve Your Score Pay all bills on time. Pay any delinquent bills. Lower your total credit card debt.

12. © 2006 Consumer Jungle How to Improve Your Score Dont close unused credit cards. Dont open up new credit cards to increase available credit.

13. © 2006 Consumer Jungle How to Get Your Score Three Credit Scores –1) TransUnion –2) Experian –3) Equifax $15.95 each $47.85 (all three & includes report) www.myfico.com orwww.myfico.com 1-800-342-6726

14. © 2006 Consumer Jungle How to Get Your Credit Report www.annualcreditreport.com 1-877-322-8228 1 Free Report each year by each credit bureau: –TransUnion –Experian –Equifax Order once from all three companies (or) Order every 4 months from a different company

15. © 2006 Consumer Jungle Duration of Info on Report Trade: Sears, Macys –7 years from last activity Judgments or liens –7 years from filing. Chapter 7 Bankruptcy –10 years Medical: case by case