automotive outreach program from a car dealer; life beyond bankruptcy

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© Copyright 2006 LifeBeyondSeminars.com – All Rights Reserved© Copyright 2006 LifeBeyondSeminars.com – All Rights Reserved

Saturday June 17, 2006Pointe Hilton Squaw Peak Resort

Saturday June 17, 2006Pointe Hilton Squaw Peak Resort

Today is the day you will Learn how to have a better Life Beyond Bankruptcy and Bad Credit… And, be provided with opportunities to take action.

Today is the day you will Learn how to have a better Life Beyond Bankruptcy and Bad Credit… And, be provided with opportunities to take action.

How to take each step needed towards rebuilding your credit after a bankruptcy or other credit damaging events.

The most effective ways to quickly re-establish your credit, who to go to, what questions to ask and more.

Easy to understand, and easy to get done series of actions you can begin immediately.

Affiliate Sponsors in your community make it possible for you to receive this vital information absolutely FREE.

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“Bankruptcy may make it possible for you to:1. Eliminate the legal obligation to pay most or all of your debts.

This is called a “discharge” of debts. It is designed to give you a fresh financial start.

2. Stop foreclosure on your home and allow you an opportunity to catch up on missed payments. Bankruptcy does not, however, eliminate mortgages and other liens on your property.

3. Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.

4. Stop wage garnishment, debt collection, harassment, and similar creditor actions to collect a debt.

5. Restore or prevent termination of utility service.6. Allow you to challenge the claims of creditors who have

committed fraud or who are otherwise trying to collect more than you really owe.”*

What Can Bankruptcy Do For Me?

*Copyright © 2006 by Robert E. McRorey. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.

“That’s GREAT that you want to collect money from me on that credit card account with the 24% APR interest charges… Do you have something to write with? Write this down: Bankruptcy #97-11852WWB, and don’t ever call me again!”

“That’s GREAT that you want to collect money from me on that credit card account with the 24% APR interest charges… Do you have something to write with? Write this down: Bankruptcy #97-11852WWB, and don’t ever call me again!”

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Bankruptcy may:1. Seem to eliminate your ability to borrow money without being

scorned, humiliated and ridiculed. 2. Make it seem impossible to get a fresh financial start when being

repeatedly turned down for loans.3. Prevent you from buying a home without paying usurious interest

rates and loan fees that seem to exceed the national debt.4. Prevent you from being able to buy a new car, or any vehicle at a

fair price, with financing at an interest rate that is less than what loan sharks charge.

5. Make you feel like debt collection starts happening before you get approved for the loan, being harassed just for trying to get one and experience negative creditor reactions for trying to live a normal American lifestyle.

6. Make it necessary to pay a big deposit to start new utility service.

What Can Bankruptcy Do To Me?

*Copyright © 2006 by LifeBeyondSeminars.com. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.

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What a Bad Credit Report Can Cost You

People often realize too late the impact a bad credit report can have on their lives. Here are a few things to consider: 1. You will pay higher interest rates (if you manage to qualify for a

loan at all). Lower credit scores mean higher financing costs.

2. You may be passed up for the job of your dreams. Now, more than ever, employers rely on credit reports when selecting candidates for employment.

3. You may not get the apartment or home you wanted. Landlords are very cautious and use credit reports to help determine who they should and shouldn't rent to.

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After Bankruptcy Discharge:After Bankruptcy Discharge:• Congratulations – You made it?!?!

• BK #97-11852WWB

• BK #02-BK-00429-MDF

• Now what?

• Congratulations – You made it?!?!

• BK #97-11852WWB

• BK #02-BK-00429-MDF

• Now what?

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Credit Reporting Subscribers… Who’s Looking at your Credit?

Normally credit reports are used for business purposes. However, anyone with a "permissible purpose" can gain access to your report, including:

• Potential lenders • Landlords • Insurance companies • Employers and potential employers (with your written consent) • Companies with which you have an existing account, for monitoring purposes. • Those groups considering your application for a government license or benefit • A state or local child support enforcement agency • Any government agency (may be allowed to view only certain portions like name, address, current and former employers) • Those who uses your credit report to provide a product or service which you have requested • Someone that has your written authorization to obtain your credit report

Your BK eliminated your outstanding debt… So why do you want to rebuild your credit?

Your BK eliminated your outstanding debt… So why do you want to rebuild your credit?

• You would like to buy a home and simply get a fair interest rate on the mortgage

• You would like to buy a home and simply get a fair interest rate on the mortgage

• You would like to buy a new car, truck or late model used vehicle without having some sleazy acting car salesman tell you why a BK means you’re going to have to pay full list price, lots of money down and an interest rate over 30% APR

• You would like to buy a new car, truck or late model used vehicle without having some sleazy acting car salesman tell you why a BK means you’re going to have to pay full list price, lots of money down and an interest rate over 30% APR

• You would like to have the freedom to do what you want in life without the label of “You have a BK on your credit report” constantly being thrown at you as if you are some kind of financial leper

• You would like to have the freedom to do what you want in life without the label of “You have a BK on your credit report” constantly being thrown at you as if you are some kind of financial leper

If you needed to get through a maze, and the quality of your life depended upon it… Would you follow the guy that already learned how to find his way through it?

If you needed to get through a maze, and the quality of your life depended upon it… Would you follow the guy that already learned how to find his way through it?

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Rebuilding Your Credit RatingRebuilding Your Credit Rating

1. 1. AcquisitionAcquisition

Of DebtOf Debt

1. 1. AcquisitionAcquisition

Of DebtOf Debt

2. 2. Repaid As Repaid As ScheduledScheduled

2. 2. Repaid As Repaid As ScheduledScheduled

3. 3. Good CreditGood Credit

Rating Rating & FICO Score& FICO Score

3. 3. Good CreditGood Credit

Rating Rating & FICO Score& FICO Score

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What is a FICO score?

A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrowers credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable.

Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance. Developing these models involves studying how thousands, even millions, of people have used credit. Score-model developers find predictive factors in the data that have proven to indicate future credit performance. Models can be developed from different sources of data. Credit-bureau models are developed from information in consumer credit-bureau reports.

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Credit scores analyze a borrower's credit history Credit scores analyze a borrower's credit history considering numerous factors such as:considering numerous factors such as:

• Late payments Late payments • The amount of time credit has been established The amount of time credit has been established • The amount of credit used versus the amount of The amount of credit used versus the amount of

credit available credit available • Length of time at present residence Length of time at present residence • Employment history Employment history • Negative credit information such as bankruptcies, Negative credit information such as bankruptcies,

charge-offs, collections, etc. charge-offs, collections, etc. There are really three FICO scores computed by data

provided by each of the three bureaus:

1. Experian 2. Trans Union 3. Equifax1. Experian 2. Trans Union 3. Equifax

How are FICO scores calculated?

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How can I increase my score? How can I increase my score? Pay your bills on time. Late payments and collections can have a serious

impact on your score. Do not apply for credit too frequently. Having a large number of inquiries for

different types of loans on your credit report can worsen your score. Reduce your revolving charge and credit-card balances. If you are "maxed"

out on your credit cards, this will affect your credit score negatively. If you have limited credit, obtain additional credit. Not having sufficient credit

can negatively impact your score. Review your credit bureau reports with a certified credit counselor and discuss

possible inaccuracies that merit opening up an investigation or the addition of consumer comments into the report.

What if there is an error on my credit report?

If you see an error on your report, report it to the credit bureau.

1. Equifax 1-800-685-1111

2. Trans Union 1-800-916-8800

3. Experian 1-888-397-3742

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Pay down 90 - 100% of revolving balances If the starting FICO score was: 670Then, based on this action the simulated FICO score could be in the following range:

700-740700-740How revolving accounts (credit cards, department store credit cards, How revolving accounts (credit cards, department store credit cards, revolving lines of credit) are managed is heavily weighted in the FICO revolving lines of credit) are managed is heavily weighted in the FICO score. FICO scores evaluate revolving accounts in a variety of ways, score. FICO scores evaluate revolving accounts in a variety of ways, including comparing balances to available credit, as well as looking at including comparing balances to available credit, as well as looking at the number of accounts with a balance. A general rule to remember: the number of accounts with a balance. A general rule to remember: consistently carrying lower balances on revolving trade lines will consistently carrying lower balances on revolving trade lines will generate positive points for a FICO score. generate positive points for a FICO score.

This simulation was based on paying down 90 - 100% of revolving This simulation was based on paying down 90 - 100% of revolving balances.balances.

Provided by myFICO®

If the starting FICO score was: 640Then, based on this action your FICO score could be in the following range:

Pay down 90 - 100% of revolving balances Pay down 90 - 100% of revolving balances

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660-700660-700Paying bills on time is a substantial factor that can affect a FICO score. Paying bills on time is a substantial factor that can affect a FICO score. Generally speaking, a score will remain stable as bills are paid on time. Generally speaking, a score will remain stable as bills are paid on time.

If there is some history of late payments, how recently they occurred is If there is some history of late payments, how recently they occurred is important. The more recently they happened, the more impact they can important. The more recently they happened, the more impact they can likely have on a score. As they age, their impact on a score can likely have on a score. As they age, their impact on a score can gradually lessen.gradually lessen.

This simulation was based on making payments on all bills for the next 6 This simulation was based on making payments on all bills for the next 6 months. months.



Pay Bills On Time for the next 6 months

Pay Bills On Time for the next 6 months

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680-720680-720Having revolving accounts (credit cards, department store credit cards, Having revolving accounts (credit cards, department store credit cards, revolving lines of credit) with balances is heavily weighted in the FICO revolving lines of credit) with balances is heavily weighted in the FICO score. FICO scores evaluate revolving accounts in a variety of ways, score. FICO scores evaluate revolving accounts in a variety of ways, including comparing balances to available credit, as well as looking at including comparing balances to available credit, as well as looking at the number of accounts with a balance. A general rule to remember: the number of accounts with a balance. A general rule to remember: having outstanding revolving credit balances hurts your FICO score, having outstanding revolving credit balances hurts your FICO score, paying them off raises your FICO score. paying them off raises your FICO score.

This simulation was based on paying down $1500 of overall balance.This simulation was based on paying down $1500 of overall balance.



Pay Down Balances Pay Down Balances

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685-725685-725Making timely payments on installment accounts such as auto, marine Making timely payments on installment accounts such as auto, marine and RV loans is heavily weighted in the FICO score. FICO scores and RV loans is heavily weighted in the FICO score. FICO scores evaluate installment accounts in a variety of ways, including comparing evaluate installment accounts in a variety of ways, including comparing beginning balances to current payoffs, as well as looking at the number beginning balances to current payoffs, as well as looking at the number of payments made on time. of payments made on time.

A general rule to remember: having outstanding installment loans with a A general rule to remember: having outstanding installment loans with a history of current payments raises your FICO score. history of current payments raises your FICO score.

This simulation was based on 12 monthly payments on a $15,000 loan.This simulation was based on 12 monthly payments on a $15,000 loan.



Pay an Installment Loan as Agreed Pay an Installment Loan as Agreed

Are you making payments on the same car that you had when you filed for Bankruptcy?Are you making payments on the same car

that you had when you filed for Bankruptcy?

““Money Down the Drain”Money Down the Drain”

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How do we acquire the Right Kind of Debt after

a Bankruptcy?

Good Debt vs. Bad Debt?Good Debt vs. Bad Debt?

Revolving (charge)Accounts = Bad Debt

Revolving (charge)Accounts = Bad Debt

Non-Collateralized Loans = Unjustifiable Debt

Non-Collateralized Loans = Unjustifiable Debt

Installment Accounts = Good Debt

Installment Accounts = Good Debt

““See the Future”See the Future” through the eyes of through the eyes of those who passed this way before us…those who passed this way before us…

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Automotive Lender Maximum Loan Advance GuidelinesAutomotive Lender Maximum Loan Advance Guidelines

• Wholesale Kelly Book value

• Sales Tax

• Registration Fees

Net Impact: Maximum Loan amount will not cover dealer profit requirements… Unless, customer has exceptionally good credit, then dealer can get more loan advance from lender based on credit score!

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The first step in acquiring “good debt” is to beginpreparing your stipulation portfolio

The first step in acquiring “good debt” is to beginpreparing your stipulation portfolio

Your record of steady income and

your personal investment into

acquiring the collateral is the first

place to start

Your record of steady income and

your personal investment into

acquiring the collateral is the first

place to start

Proof of Income

Including current pay stubs, bank

statements, 1040’s, Schedule C’s

Proof of Income

Including current pay stubs, bank

statements, 1040’s, Schedule C’s

DownPayment

or Trade-In> enough to cover

Tax, License & Fees

DownPayment

or Trade-In> enough to cover

Tax, License & Fees

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3 Years Work Historyincluding addressesand phone numbers


Proof of Income

Including current pay stubs, bank statements

1040’s, schedule C

Proof of Income



Down Paymentor Trade-In


Your work historyand proof of income

are the most importantpart of verifyingyour ability to

repay your loan

Your work historyand proof of income

are the most importantpart of verifyingyour ability to

repay your loan

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Proof of Income



Proof of Income





4 – 8 Full Personal

Referencesincluding addressesand phone numbers

4 – 8 Full Personal

Referencesincluding addressesand phone numbers

Neverunderestimate your

credibility gain from multipleand detailed references

Neverunderestimate your

credibility gain from multipleand detailed references

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Proof of Income Including current pay stubs, bank statements, 1040’s, Schedule C

Proof of Income Including current pay stubs, bank statements, 1040’s, Schedule C



4 - 8 Full Referencesincluding addressesand phone numbers

4 - 8 Full Referencesincluding addressesand phone numbers

Residency:Utility bills,voter registration,Phone bills,Cable TV bills

Residency:Utility bills,voter registration,Phone bills,Cable TV bills

Paying yourdomestic billson time can be

leveraged as evidence of “Credit History”

Paying yourdomestic billson time can be

leveraged as evidence of “Credit History”

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Proof of Income Including current pay stubs, bank statements, 1040’s,

Proof of Income Including current pay stubs, bank statements, 1040’s,



4 - 8 Full References

including addresses and phone numbers

4 - 8 Full References

including addresses and phone numbers

Residency:Utility bills, voterregistration, Phonebills, Cable TV bills

Residency:Utility bills, voterregistration, Phonebills, Cable TV bills

Proof of Insurance & Drivers License

Proof of Insurance & Drivers License

Vehicle Sale and Finance Terms,

Budget, Rent, Insurance, car payment, all reported

debt in Line withLender Program

Vehicle Sale and Finance Terms,

Budget, Rent, Insurance, car payment, all reported

debt in Line withLender Program

Click to edit Master title style

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With these documents in hand,With these documents in hand,you’ve dealt yourself a winneryou’ve dealt yourself a winner

►Proof of Income – current pay stubs, 1040’s►3 Years of Work History – phone numbers►Full References – 8 names with occupation,

mailing addresses & phone numbers►Current Drivers License – CoX if applicable►Proof of Insurance – current ID card►Most recent utility bills – in your name►Most recent phone bills – in your name►Voter Registration card – shows residency

►Proof of Income – current pay stubs, 1040’s►3 Years of Work History – phone numbers►Full References – 8 names with occupation,

mailing addresses & phone numbers►Current Drivers License – CoX if applicable►Proof of Insurance – current ID card►Most recent utility bills – in your name►Most recent phone bills – in your name►Voter Registration card – shows residency

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Basic Information at top of Credit ReportBasic Information at top of Credit Report

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Chase Does Not Like me… But… Chase Does Not Like me… But…

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??

They seem to have given me an unexplained credit card account!

Watch for Unknown Accountsthat show up unexplained!

They seem to have given me an unexplained credit card account!

Watch for Unknown Accountsthat show up unexplained!

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Current Auto Financing Included in BK DischargeCurrent Auto Financing Included in BK Discharge

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Take action to correct the false reporting that follows a BK discharge… Discharged debts are not past due!

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Installment AccountsPaid or Paying as AgreedRaises your credit score

Installment AccountsPaid or Paying as AgreedRaises your credit score

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Credit Score AnalysisAbout your Credit Score:Your Credit Score is formulated using the information in your credit file. Your score helps potential lenders, landlords, and employers quickly gauge your credit history and decide what kind of a risk they are taking if they approve your application. Your Credit Score can range between 330 and 830, with a higher score indicating a lower risk. There are many scoring models used in the marketplace. The type of score used, andits associated risk levels, may vary from lender to lender. But regardless of what scoring model is used, they all have one purpose: to summarize your creditworthiness. Keep in mind that your score is just one factor used in the application process. Other factors, such as your annual salary and length of employment, may also be considered by lenders when you apply for a loan.

What your Credit Score means:Your credit factors indicate that you will likely be seen as having average credit. Lenders may want to review potential trouble areas in your credit history and may require additional documentation before approving a loan. Offers, such as auto loans, may have higher interest rates and may require a higher initial down payment. You can increase your chances of receiving more favorable credit card and loan offers bybuilding a history of good credit behavior.

Provided by myFICO®HandoutHandout

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What this means to you:Credit scoring helps companies better understand how to serve you. And the overall benefits of credit scoring are passed on to the consumer, such as faster credit approval, reduction in human error and bias, consistency, and better terms and rates for you through reduced costs and losses for lenders. While lenders may use different scoring models to determine how you score, and each major credit bureau has its own method for calculating credit scores, the scoring models have been fairly well standardized so that a score at one bureau is roughly equivalent to the same score at another. Below are common factors that are both positively and negatively affecting your Credit Score.


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What factors raise your Credit Score:

• You have a good cushion of available credit between your current balance and your credit limits on all open trades. This has a positive affect on your credit score. This cushion shows lenders that you are unlikely to overextend yourself financially. If you keep paying your bills on time and keep your credit balances low, you will likely continue to enjoy a positive credit score. (P-I)

• You have at least 2 or more open major credit cards, such as VISA or MasterCard, on your credit report. This often tells lenders that you are a responsible borrower and they may be more likely to see you as a good credit risk and extend you credit. (P-E)

• Your credit report does not contain negative public records, such as a bankruptcy, lien, lawsuit or judgment filed within the last two years. This is having a positive impact on your credit score. Although public record items may remain on your credit report for seven to 15 years, depending on the item, an important piece of your credit history is paying your bills on time, every time. (P-B)

• You have worked a long time building a credit history, which is having a positive impact on your credit score. Having a history of long-term credit accounts that you consistently pay on-time is one way that lenders view your financial responsibility. Maintaining positive credit behavior will help you maintain a good score. (P-C)


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What factors lower your Credit Score:Your payment history shows one or more payments that were late by 30 days or more. Late payments count negatively against your credit score. If you want to improve your score, one of the best ways is to pay all your bills on time, every time. Although negative information can stay on your credit report for up to seven years (up to 10 years for bankruptcies and 15 years for unpaid tax liens), if you pay overdue bills and make payments on time, your good efforts to improve your credit habits may be recognized by lenders. (N-A)


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What should I look for in my credit report?

It is important to frequently review your credit file to verify the following:

Name Address Social Security Number Date of birth All the accounts listed are your own Credit/charge accounts Outstanding balances/limits on the accounts Payment histories Derogatory credit information has been deleted after the appropriate amount of time Inquiries

Provided by MyCompleteCredit.com®

HandoutHandout

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Why should I review my credit files from all three credit reporting agencies?

Each credit bureau records information it receives from your creditors. You can’t control which credit reporting agency (Equifax®, Experian® or TransUnionSM) your lender uses, so prepare yourself by checking your credit files and credit scores from the three credit reporting agencies for accuracy.

What is a credit score?

A credit score is based on variables in your credit file that help determine your creditworthiness. The credit scoring number is based on various factors, including the number of trade lines you have open, the number of late payments, delinquencies, etc. Lenders look at your credit file and other factors to determine your creditworthiness.

Provided by MyCompleteCredit.com®HandoutHandout

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Why is my credit score so important?

Lenders carefully consider your credit score because it provides them with an objective measure of your creditworthiness. Your credit score can be impacted by many factors such as late payments, delinquencies or high amounts of debt. Lenders may deny your loan or charge you a high interest rate if you have a low credit score. If you have a good credit history, you may have more options available to you resulting in lower interest rates and potentially big savings.

Lower loan rates can mean thousands of dollars in your pocket over the years. If you purchase a home for $250,000 at 8.3% interest you will pay $679,306 over the course of a 30-year mortgage. At 6.5 % interest, however, you will pay only $568,861 — a savings of $110,445.

HandoutHandout Provided by MyCompleteCredit.com®

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6 Steps to Better Credit1. Pay your bills on time. Creditors scrutinize your credit

history. If you pay your bills on time, this reflects well on you. If you have a record of late payments, you might want to consider credit counseling on how to better manage your finances.

2. Don’t over-apply for credit. Each credit card application shows up as an inquiry in your credit report. If you’re comparison shopping for the best rate on a single purchase (home or car), that’s OK. Too many inquiries for a wide range of revolving or unsecured accounts can be viewed as a desperate bid to obtain credit to get out of financial trouble.

Provided by MyCompleteCredit.com®HandoutHandout

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6 Steps to Better Credit(continued)

3. Manage your debt. Your debt/income ratio — the percentage of your income that goes to paying off debt — is another gauge of your financial health. You can calculate this ratio by dividing your monthly minimum debt payments (excluding mortgage) by your monthly take-home income. If your debt payment absorbs:

Less than 20% of your income, you are great Between 20% to 35% - consider reducing your overall debt More than 35% - consider credit counseling or some type of aggressive debt-reduction strategy


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4. Shred your documents. Be sure to destroy any piece of paper with Social Security Number or credit card numbers. Thieves often go through garbage retrieving people’s identification so they can use this information to commit credit fraud.

5. Don’t give information away. Never include your Social Security number on checks or driver’s license. Be extremely cautious how you use your Social Security number; it is your key personal identification number that is a gateway to your personal identity. If required to provide this information, always ask if there is another option.


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6. Check your online credit report and credit score on a regular basis. The only way to protect your name and credit is to be proactive. With the rise of identity theft cases, it is important to review your credit files, and to report any inaccuracies to the major credit reporting agencies.

When consumers access their own credit reports, it does not count as a lender inquiry.


How do you know when you have won?How do you know when you have won?

• When you are no longer reluctant to consider investing in an asset that requires your credit to be reviewed

• When you actually look forward to selecting your next vehicle

• When shopping for a new home is fun

• When you are no longer reluctant to consider investing in an asset that requires your credit to be reviewed

• When you actually look forward to selecting your next vehicle

• When shopping for a new home is fun

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Question and Answer SessionQuestion and Answer Session