2. 2 Copyright © Texas Education Agency, 2012. All rights reserved. Copyright © Texas Education Agency, 2012. These Materials are copyrighted © and trademarked ™ as the property of the Texas Education Agency (TEA) and may not be reproduced without the express written permission of TEA, except under the following conditions: 1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from TEA. 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only, without obtaining written permission of TEA. 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way. 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts, Texas Education Service Centers, or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from TEA and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty. For information contact: Office of Copyrights, Trademarks, License Agreements, and Royalties, Texas Education Agency, 1701 N. Congress Ave., Austin, TX 78701-1494; phone 512-463-7004; email: copyrights@tea.state.tx.us.copyrights@tea.state.tx.us

3. 3 Copyright © Texas Education Agency, 2012. All rights reserved.

4. Credit Score A number assigned to a person that indicates to lenders their capacity to repay a loan. The number is between 300 and 850 The higher your score, the lower the risk to lenders. 4 Copyright © Texas Education Agency, 2012. All rights reserved.

5. Searching for an apartment or house Job opportunities Better interest and insurance rates More opportunity 5 Copyright © Texas Education Agency, 2012. All rights reserved.

6. Paying bills late Too many delinquent accounts Requesting too many credit reports Too many credit cards Excessive debt amount Filing for bankruptcy 6 Copyright © Texas Education Agency, 2012. All rights reserved.

7. This scoring system formula, developed by FICO™, is used to help lenders evaluate the risk for potential lenders. 7 Copyright © Texas Education Agency, 2012. All rights reserved.

8. Excellent 850-750 Good 749-650 Fair 649-600 Poor 599-300 8 Copyright © Texas Education Agency, 2012. All rights reserved.

9. You are entitled to a free credit report once a year from each of the following credit bureaus: Equifax www.equifax.com Experian www.experian.com Trans Union www.tuc.com 9 Copyright © Texas Education Agency, 2012. All rights reserved.

10. Pay monthly bill on time Open a line of credit and use it responsibly Don’t “max out” your credit card Keep line of credit with one company Monitor credit Keep track of finances 10 Copyright © Texas Education Agency, 2012. All rights reserved.

11. Debbie has four credit cards. Two of the four cards have reached the available credit limit and the other two cards have used 50% of their available credit limit. Debbie has never missed a payment and always makes the minimum payment on the cards. She is in the process of relocating and is looking for places to live. Four different property management companies have run credit reports to check her financial history. What factors could negatively effect Debbie’s credit score? 11 Copyright © Texas Education Agency, 2012. All rights reserved.

12. Images: Microsoft Office Clip Art: Used with permission from Microsoft Websites: Consumer’s Guide: Credit http://www.federalreserve.gov/creditcard Credit Union National Association http://anytime.cuna.org/15608/index.php Financial Literacy Now http://www.financiallitnow.org/index.shtml Practical Money Skills https://www.practicalmoneyskills.com 12 Copyright © Texas Education Agency, 2012. All rights reserved.