1. © 2006 Consumer Jungle Credit Scores & Reports

2. Learning Target I can explain what can affect my credit score and how to improve it. © 2006 Consumer Jungle

3. 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?

4. © 2006 Consumer Jungle Credit / FICO Score Fair Isaac Company Range between 300 & 850 U.S. Median: 723 < 620 = sub prime > 760 = best rates

5. © 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

6. © 2006 Consumer Jungle

7. 35% Payment History Late payments have the greatest negative impact. Recency & frequency are important too.

8. © 2006 Consumer Jungle 30% Outstanding Balances Total balance vs. total available credit. Are you overextended?

9. © 2006 Consumer Jungle 15% Length of Credit History Number of years you’ve used credit. How long since you’ve used certain accounts.

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

11. © 2006 Consumer Jungle 10% Types of Credit Mix of: –Revolving Credit Credit cards –Installment Credit Car loan Home loan

12. © 2006 Consumer Jungle How to Improve Your Score Pay all bills on time. Pay any delinquent bills. Lower your total credit card debt.

13. © 2006 Consumer Jungle How to Improve Your Score Don’t close unused credit cards. Don’t open up new credit cards to increase available credit.

14. © 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

15. © 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

16. Your Credit Report © 2006 Consumer Jungle

17. Selecting the Right Card © 2006 Consumer Jungle

18. What if credit cards had a warning label on them? What would they say??

19. Create a Warning Label Include the following warnings: May cause…. Use only for…. Do not use for…. Avoid…. Include A Picture!!!

20. In a consumer society there are inevitably two kinds of slaves: the prisoners of addiction and the prisoners of envy. -Ivan Illich (1926-2002)