1. SCORE SOME POINTS UNDERSTANDING AND RAISING YOUR CREDIT SCORE

2. 2 Welcome! Introductions Objective: Learn about the importance of credit scores, what is a credit score, what impacts your score, and what actions you can take to raise it.

3. 3 Nearly 80% of credit reports contain an error! 25% of credit reports contain at least one serious error! Source: Federation of State Public Interest Research Groups

4. 4 Why our credit score matters It comes into play whenever we try to: Get a mortgage Rent a house or apartment Buy or lease a car Secure a credit card Apply for a job

5. 5 What’s a credit score, anyway? A rating to indicate how much credit risk we pose Used by lenders, insurance companies, landlords and employers

6. 6 FICO ® scores FICO ®  Fair, Isaac and Company  Developed the software used by most credit bureaus to calculate a credit score FICO® scores is the most commonly used credit rating Credit scoring is a quick, objective & consistent method for lenders to measure the “risk” of an applicant  Scores based solely on information in consumer credit reports maintained at the credit reporting agencies (Experian, TransUnion & Equifax) The higher the score, the lower the risk, a FICO score is a constant work in progress

7. 7 Credit Score Scale Chart Credit ScoreRating 760-850Excellent 700-759Great 660-699Good 620-659Fair 580-619Poor 579 and belowVery poor

8. 8 Factors behind each score

9. 9 The higher our credit score, the lower our loan payments 30-year fixed mortgage Loan amount $200,000 Credit scoreAnnual percentage rate (national average) Monthly payment 760-8504.419% $1,004 700-7594.641%$1,030 680-6994.818%$1,052 660-6795.032%$1,078 640-6595.462%$1,131 620-6396.008% $1,200 Source: myfico.com – rates as of 1/25/11; for illustrative purposes only ($196 more than the lowest monthly payment or $70,560 over the life of the loan)

10. 10 Personal Action Plan Action StepWhenDone     Action Item! Create your own Personal Action Plan throughout this presentation.

11. 11 1. Check our credit reports Once every 12 months, get a free copy of your credit report from each major agency Check reports before applying for a new job, mortgage or other big loan Dispute errors with the Credit Reporting Agency (CRA) and the lender Go to AnnualCreditReport.com or 1-877-322-8228 Tip: order a free report from a different agency every four months

12. 12 2. Know our score At least once a year, when ordering one of your free reports from one of the Credit Report Agencies, also buy one of your credit scores Or, buy your credit scores anytime at myFICO.com

13. 13 3. Raise our score Payment History – 35% Pay bills on time Get current and stay current Amount Owed – 30% Pay down debt do not shift it Installment is better than revolving Length of Credit History – 15% Keep long-running credit card accounts open Avoid opening a lot of new accounts within a short time frame

14. 14 3. Raise our score (continued) Types of Credit in Use – 10% Maintain a good mix of credit Apply for only what you need New Credit – 10% If we’ve had problems, re-establish our credit history Avoid opening new accounts that we don’t need It’s ok to check your credit Fix errors on credit reports

15. 15 4. Monitor our reports and scores regularly Every four months, order a free credit report from one agency At least once a year, buy your credit score from one agency Take action, if necessary

16. 16 Credit Reporting Agency Contact Info AnnualCreditReport.com or 1-877-322-8228 Equifax.com or 1-800-846-5279 Experian.com or 1-888-EXPERIAN (397-3742) TransUnion.com or 1-800-888-4213 myFICO.com

17. 17 Personal Action Plan Action stepWhenDone Close at least 1 unused credit cardNext 3 days  Check your credit report and credit score from at least one agency Next 7 days  Take action to start raising your scoreNext 14 days 

18. 18 Questions?

19. 19 Charter One Legal Disclaimer The information presented in these materials are intended and written to be educational only. This presentation is not intended or written to be relied on for tax or legal advise. We are not in the business of providing tax or legal advice. Please seek advise based on your particular situation from an independent tax or legal advisor. Member FDIC. Equal Housing Lender. Charter One is RBS Citizens, N.A.