CREDIT SCORE TIPS

1)     What is a FICO?       FAIR ISAAC CORPORATION  =   RISK

a.       Payment History 

b.       Amount Owed

c.       Length of Credit

d.       Type of Credit

e.      New Credit

2)     How do I rank?

a.       780 > 850     MORE THAN FABULOUS      = 20% USA

b.       720 > 780     FABULOUS                        = 20% USA

c.       680 > 719     GOOD                              = 20% USA

d.       620 > 679     OK                                   = 20% USA

e.       600 > 619     DO-ABLE                          = 20% USA

f.        500 > 599     WORKABLE

g.       None > 330   POSSIBLE

3)     Analyzing your report

a.       Verify Accuracy – Soc Sec / Name / Address

b.       Trade Lines – Names/ Outstanding / Line Limits / Delinquencies

c.       Inquiries – Voluntary / Involuntary (preapproved credit cards)  X 2 yrs

d.       Public Records – Liens/ Bankruptcies x  7 - 10 Yrs

4)     How does it impact me?     LEGAL DISCRIMINATION $ =  HIGHER %

a.       Improving a FICO can assist with ability to borrow more money at lower rates

5)     Credit ACTIVISM -  6 months before new mortgage

a.       Pay all accounts current

b.       Do not delete old accounts, pay down accounts less than one third, do not move debt around

c.       Do not apply for a single new credit line:  1 new line ~  5 points

d.       Do not apply for multiple new lines of credit credit.. no preapproved credit cards, do not test drive cars

e.       Credit Counseling can hurt you … late payments will not disappear.. you may not know about it

f.        Remove erroneous information of lines with Bureaus

g.       Check your credit only with approved agencies… it will not ding your score

h.       Do NOT Shop for loans. One inquiry @ 5 pts decrease. If you shop you can lower your score and end up paying a higher intersest rate and possibly not get your loan

i.         Closing accounts do not delete from your report… late payments will not disappear

j.       ECOA – right to obtain reason for denial within 30 days of application for poor credit

k.      Rapid Scoring Programs – Remove problems in 72 hours (Letters from Lines, Cost $250)

l.        Supplemental Reports from Mortgage Brokers – do not alter score, show line balances cleared

m.   Sign up for credit monitoring service through your local bank, available online @ $12/ month

6)     Resources:

a.      Consumer Site:

·           www.myfico.com - request copy of your reports – get all 3 bureaus

b.      Professional Lending Reporting:

·                Mortgage Broker – Janis Callon – Complete online application – I will analyze and review with you

c.      Bureaus:

          Equifax                          Experian                       Trans Union

            800.916.8800                 888.397.3742                 800.916.8800

            PO Box 740241               PO Box 2002                 PO Box 2000

            Atlanta, GA                    Allen, TX                       Chester, PA

            30374                            75013                           19022

For more information, please email Janis.