1. Credit Josh Lienau, Natalie Skelton, Derek Lomibao, Erika Stauss, Cheyanne Decker

2. What is a Credit Score? A credit score is a three-digit number assigned to a person that indicates to lenders their capacity to repay a loan.

3. Types of Credit Scores Equifax- A bureau that reviews, reports, and maintains consumer credit files. Experian- Provides information,analytical tools, and marketing services to organizations and consumers to help manage financial decisions. Transunion- Provides credit information and information management services.

4. Factors that go into a Credit Score Payment history Amount of debt Length of credit history New credit Type of credit in use Utilization Available Credit

5. How does one establish good credit? 1. Pay bills on time 2. Keep a job, don’t jump around 3. Stay in one place 4. Keep debt low 5. Check your budget often and stick to it 6. Don’t let your credit card go unused 7. Open a bank account for a long length of time

6. How does one with bad credit improve their credit? 1. Reduce amount of debt you owe 2. Get current and stay current on bill payments 3. Avoid jumping from credit card to credit card 4. Get out and stay out of debt 5. Keep credit card balances low

7. What types of companies look at a credit score? Banks,car dealerships, mortgage companies, phone and electric companies, employers for companies,

8. What causes credit scores to go up or down? Down: closing credit card accounts; missing payments; over- utilization of available credit card limits; Ex: excessive shopping for more credit because of maxing out all other credit cards Up: keep using your credit cards, but wisely; pay bills and payments down regularly; get rid of debt; avoid excessive credit; have a range of credit types(ex: having larger loans such as a mortgage or for a car)

9. How have banks and companies changed their lending policies in the last 7-10 years? Before, banks did not have a collateral on any loan( say something about how credit score doesnt matter. Banks now a days require a credit score but if it is a low score… the bank will ask for a collateral (assets) if you fail to pay the payments by the due dates.

10. What is the right amount of credit cards to have? Five credit cards is the right amount to have because each of them (saying they are VISA, MasterCard, or American Express) each have a $20,000 capacity and with five that means that you’ll have $100,000 capacity, or buying power.

11. Should you carry a balance on these? Yes all five of the credit cards should have a balance on them and have more because if you do not have a balance you have to have the ability to pay the charges on the card after you buy a item.

12. If you haven’t used a credit card in a long time should you keep it open? Yes, you should keep it open because if closed, it can ruin your overall credit score which can impact how other companies treat you as a customer.

13. Extra information Credit score does not go with just a person but full on companies. If you fight a credit card bill, your credit score can go down. A good credit score is 750 and above Not everybody has a credit history (young, or not applied for credit) Credit score and report (use) are different FACT act allows you to see your credit report for free You can have as many credit cards as you want but do not open them too frequently because they count as 10% of your overall credit score. Having multiple names on a credit card can lower your credit score.

14. Employers use your credit score when you apply for a job. Your credit score can affect the amount on your auto insurance payments. Maxing out your credit card does not hurt your credit score FICO says it can lower it. FICO is an American public company that provides analytics and decision making services that help financial services companies make high volume decision. If you pay the bare minimum on a payment your credit score does not go down. FICO stands for Fair-Isaac-Corporation Extra Information (cont.)