1. Rating Your Credit and Help for Credit Problems

2. What is your credit score? A score that tells everyone if you are a good risk Credit bureaus sell credit score information to lenders Higher score means you can borrow money at a lower interest rate

3. Your Credit Score

4. Typical Scores…..

5. How is the average American doing?

7. Great Credit Score Saves You Money

8. Poor Credit Score Costs You Money

9. It obvious…you want a good credit score $639,720 $891,720 Credit Scores Make a Big Difference!

10. Credit score determined by…. Employment and income Housing (rent or own?) Assets  What you own (investments, savings accounts, etc.) Credit history  How many loans do you have?  What do you owe on each one?  Are you close to your credit limit?  How prompt are you with payments?

11. If you don’t pay off your loans…… Called defaulting on a loan Property can be repossessed Home foreclosure Wages garnished Bankruptcy  Reduces what you owe but future borrowing will be very difficult

12. How do you fix your credit problems? Change behavior  Cut up credit cards  Needs versus wants Get on a budget! Work with creditors to create new payment schedules Non-profit credit counseling agencies Profit credit counseling agencies  Careful! You often must pay a fee…another bill!