2. • Guaranteed Rate was founded in 2000 by President and CEO Victor Ciardelli
• Since 2000 GR has had double-digit growth each year, becoming the 2nd
largest independent mortgage company in the nation!
• Headquartered in Chicago, with more than 2,500 employees companywide,
with more than 140 offices Nationwide
• Licensed in 49 states plus Washington D.C.
• Closed Loan Volume of more than $14.5 Billion for 2012
About Guaranteed Rate
3. Agenda
• Credit report purpose
• Information included on a credit report
• Credit score factors
• How to get a copy of your credit report
• Credit repair process
4. Credit Report Purpose
• Provides a history of your credit use to
prospective lenders
• Allows lenders to assess risk of extending credit
to you
• Used for all forms of credit, including apartment
rental, credit cards, student loans, car & home
loans, etc.
5. Establishing Credit
• Apply for credit card with a reasonable limit
• Buy something for approx. $100, and pay back in
2 months
• Do it again, and make sure to pay on time!
• 4 trade lines will be needed to obtain a mortgage
• 12 months of activity are needed to develop
credit history
6. What Information is Included in a
Credit Report?
• Personal Info: name, address, date of birth, employer
• Credit Account History: credit card company/lender,
type of account, credit limit, balance, payment
history
• Public Records: bankruptcy, tax liens, and judgments
• Credit Inquiries: creditor and date of inquiry
7. What is a Credit Score?
• Summary of credit report info represented as a single
number, based on a mathematical calculation
• FICO (Fair, Isaac, & Co.) most common score type
• FICO scores range from 300 – 850; the higher the
better
• Predict future payment history for creditors
• Scores are “fluid” – recalculated each inquiry
8. Credit Score Factors
• Payment History: 35%
• Amount Owned: 30%
• Length of Credit History: 15%
• New Credit: 10%
• Type of Credit Used: 10%
100%
9. Getting Credit Reports
• There are 3 credit bureaus and each has a credit score for
you (scores may be different)
• Equifax 800-685-1111 or www.equifax.com
• Experian 888-397-3742 or www.experian.com
• TransUnion 800-888-4213 or www.transunion.com
• ** For a free credit report, go to: www.annualcreditreport.com **
10. How to Use Your FICO
• If denied credit, ask lender for “score reasons”
• Up to 4 score reasons provided with your FICO that
explains why the score isn’t higher, such as:
• Number of accounts with delinquency
• Amount owed on accounts
• Too many accounts with balances
• Understanding these reasons can help improve your FICO over time
11. Credit Score Cautions
• Debt settlement and debt management plans may
hurt your credit for at least 2 years, especially to a
mortgage lender
• Once you’ve received a pre-approval from your
mortgage lender, it’s important not to make any
other credit purchases that could negatively impact
your score. This will be checked 2 days prior to
closing, and could impact your approval.
12. Credit Score Cautions
• Mortgage lenders now require a “soft pull”
credit inquiry (FICO score not pulled) to be
pulled upon submission of clear to close
conditions. If new debt has been obtained, the
loan file must be reevaluated thru AUS to
ensure compliance with DTI and borrower
eligibility requirements.
13. Credit Repair
• You cannot “repair” poor credit
• Derogatory credit remains on your report for up to 10 years
• Avoid paying for credit repair services guaranteeing to fix
poor credit
• You can correct inaccurate information
• Dispute incorrect credit information
• Update personal information
• You can improve credit behavior (limit credit lines & balances,
pay on time)
14. Credit Help
• American Consumer Credit Counseling:
• www.consumercredit.com
• 800-769-3571
• National Foundation for Credit Counseling:
• www.nfcc.org
• 800-388-2227
15. Social Media
• Monthly social media webinars geared solely toward
Realtors
– New topic every month
– Prize giveaways
– Q&A