understanding your credit...character: credit score fico score: 300-850 average score: 700 average...
TRANSCRIPT
![Page 1: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/1.jpg)
Understanding Your Credit
![Page 2: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/2.jpg)
Who cares about your credit?
Banks
Credit Card Companies
Landlords
Employers
Utility Companies
Insurance Companies
![Page 3: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/3.jpg)
5 C’s of Credit
Character
Capacity
Capital
Collateral
Conditions
![Page 4: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/4.jpg)
Character
Do you pay your bills?
What is your credit score?
Have you ever had a debt go to collections?
Have you ever had utilities shut off?
Have you ever been evicted?
Have you ever declared bankruptcy?
![Page 5: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/5.jpg)
Character: Credit Report
![Page 6: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/6.jpg)
Character: Credit Score
FICO score: 300-850
Average score: 700 Average score of 18-29: 652
Higher score = better terms, more likely to be approved
Lower score = denial, shorter loan, higher interest rates
![Page 7: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/7.jpg)
Character: Credit Score
![Page 8: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/8.jpg)
Character: Credit Score
![Page 9: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/9.jpg)
Character: Credit Score
What helps your score?
On time payments
Low balance as a percentage of available credit
Long history
Some loans are better than others: mortgage, education, auto, etc.
No judgments (evictions, collections, bankruptcy)
![Page 10: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/10.jpg)
Character: Credit Score
What hurts your score?
Late payments
Recent requests for credit
High balances
Judgments
Foreclosures
Bankruptcy
![Page 11: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/11.jpg)
Character: Credit Score
What should YOU do?
Check credit report: 3 free annual reports
PAY YOUR BILLS!
Don’t close old accounts
Don’t open cards at every store you go to
Don’t open new credit if you will soon be applying for a loan
![Page 12: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/12.jpg)
Capacity
Do you have the ability to pay?
Debt to income ratio
Total monthly debt payments
Stable income
![Page 13: Understanding Your Credit...Character: Credit Score FICO score: 300-850 Average score: 700 Average score of 18-29: 652 Higher score = better terms, more likely to be approved Lower](https://reader034.vdocuments.net/reader034/viewer/2022050100/5f3ffdc19bdbc96735143ff1/html5/thumbnails/13.jpg)
Capital
Do you have any money or investments?
Savings
Retirement accounts
Investments
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Collateral
Do you have something the lender can take if you don’t pay?
Mortgage
Car loans
Retirement Account Loans
Rent-to-own
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Conditions
Terms of the agreement
Length
Penalties
Interest rate
Extra conditions