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Credit 101

What is Credit?

-the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.


What is Credit Important For…

-Home & Vehicle Loans

-Personal/Business Loans

-Insurance Rated

-Employment Eligibility

What Is A Good Credit Score? 300–579: Poor Credit Score

580–669: Fair

670–739: Good

740–799: Very Good 800–850: Exceptional

What Makes Up Your Credit Score? 35% – Payment history 30% – Credit utilization 15% – Length of credit history 10% – Inquiries and new credit. 10% – Diversification of credit


3 Main Credit Bureaus

Equifax

TransUnion

Experian


Anatomy Of Credit

Personal Info

Negative Accounts

Positive Accounts

Public Records

Inquiries

Consumer Statements

Furnisher Contact Information


Personal information: Name, optical aliases, DOB, SS# , current addresses, previous addresses and employment information.

Negative Accounts: Anything that wasn’t paid or paid late. These items you DO NOT want on your report because they lower your credit score.


Positive Accounts: Accounts that have been paid on time and are items you DO want.


Public Records: Court records such as judgments, liens, bankruptcies, child support and sometimes criminal histories.


Inquires: Record of anytime your credit report have been requested. There are different types of inquires. Hard or soft.


Consumer Statements: Area on your credit report that allows you to place a 100 words or less explanation about something on your credit.

Furnisher Contact Information: Name, addresses, and phone numbers of the companies that have reported information to the credit bureaus.











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