What is a credit score? 5 components making up credit scores.

1. Credit Scoring … Protecting Your Future and your Capital

2. CREDIT SCORE! What Does it Mean?

8. CREDIT SCORE! Consumer Default: What are the Odds?

9. Odds on Consumers: 90 Days Late Score Odds Above 800 1292 to 1 760 to 799 597 to 1 720 to 759 323 to 1 700 to 719 123 to 1 680 to 699 55 to 1

10. Score Odds 660 to 679 38 to 1 620 to 659 26 to 1 500 to 600 8 to 1 Below 500 Odds on Consumers: 90 Days Late FORGET IT!

11. A Low Credit Score Can Cost You BIG! Compare 30 yr fixed rates on a $500,000 home $1,066,352 4350.95 9.9% 500-599 $871,305 3809.19 8.4% 560-619 $770,937 3530.37 7.6% 620-679 $637,722 3160.34 6.5% 680-699 $567,647 2965.68 5.9% 700-719 $499,549 2776.52 5.3% 720-850 Interest Paid Monthly Payment APR Rate FICO Score

12. Jack & Brad: $500,000/30yr. Fixed 595 681 Credit Score Equal Equal Salary Brad Jack

13. Jack & Brad : $500,000/30yr. Fixed 0 $14,288 Yearly Savings 595 681 Credit Score Equal Equal Salary Brad Jack

14. Jack & Brad : $500,000/30yr. Fixed 0 $428,630 Interest Saved over 30 Years 0 $14,288 Yearly Savings 595 681 Credit Score Equal Equal Salary Brad Jack

15. Jack & Brad : $500,000/30yr. Fixed $0 $ 2,476,911 10% return on savings compounded total in 30 yrs. 0 $428,630 Interest Saved over 30 Years 0 $14,288 Yearly Savings 595 681 Credit Score Equal Equal Salary Brad Jack

16. CREDIT SCORE! What are the determining factors?

18. 1. Past Delinquencies… 35% of Credit Score

25. CREDIT SCORE! How long do delinquencies stay?

27. 2. Revolving Debt Ratio 30% of Credit Score

32. 3. Average Age of Credit File… 15% of Credit Score

36. 4. The Mix of Credit … 10% of Credit Score

42. 5. Inquiries … 10% of Credit Score

49. CREDIT SCORE! Now you Know!