Get Back on Track with your Credit

1. Get Back on Track with your Credit Thank You for Joining us!

2. Disclosure …… • The information provided herein is for information and educational purposes only and does not constitute individual financial, credit or legal advice. Furthermore, any action taken resulting from the use of this data or other information in any report, seminar, newsletter or within the www.aventa.com site should also not be construed, in any manner whatsoever, as the receipt of , or a substitute for, personalized individual advice from a qualified financial advisor or lender.

3. What will I walk away with? • What is Credit History • FICO and what it is • How to Improve Your credit • Building New Credit • Other aspects of Credit • What can Aventa do for me

4. Credit History • How you spend • Where you spend • When you Spend • How you Pay • Financial Priorities A Record of you and your financial behavior

5. What Credit tells about You • Personal Information Current & Previous Address Birth Date • Summary of Accounts When accounts were opened How many payments you’ve made • Public Records Bankruptcies Tax Liens • Home Owner Past or present • Employment Information Past and Present • Inquiries Who has pulled your credit

6. What am I looking at ?

7. What information is seen as negative? • Collection Accounts • How old are they • What are they for • Late Payments • How many • How far back • How many accounts • Accounts over limit • Multiple Accounts opened in a short amount of time • Types of Accounts • Credit Card Accounts / Mortgage / Auto • Bankruptcies • Date of Discharge • Delinquency after BK • Public Records • Date • Foreclosure • Multiple Accts at Max Limit • Too Much Debt It’s All Relative ………………………

8. Are there degrees of Negativity? • Most of the time it’s the combination of more than one negative mark that determines the degree of negativity. • History of Late Payments • Late Payments after BK, Collections after BK • Multiple Collection Accounts other than Medical • Charge offs and Profit and Loss • BK with over extended credit after

9. Your Credit Score • Credit scores usually range from 300-850, with 680 or higher considered to be “good.” • Your credit score may fluctuate each time something changes on your credit report. • Credit scores are calculated using complex mathematical formulas that look at your payment history, debts, credit history, inquiries, and other elements of your credit report.

10. FICO Score • Each Reporting Agency Reports a Score • The most widely used scoring model is FICO (Fair Isaac Corporation) • There are many factors that make up your credit Score • You do not control the number, you can only control the information

11. The Breakdown • Your payment performance history (35%) • Your current level of indebtedness (30%) • The age of your credit history (15%) • Your pursuit of new credit (10%) • The type of accounts in your credit report (10%)

12. The Rebuild………….. • In Order to Rebuild you have to know where to start • Order your free Credit Reports • Transunion • Equifax • Experian

13. The Dig • What, Where, When, Why • What did you owe • Where did you owe (Creditor) • When did it happen • Why did it happen Having past creditor information and contacting them is important. Creditors will transfer debt for collection purposes and you must follow the trail.

14. Documentation……………. • Personal Explanation of Derogatory History • Written documentation from Creditors on status of derogatory • Payment Plans • Settlements • Proof of Paid

15. Derogatory Time Frame • (up to)10 Years • Bankruptcies • Tax Liens • Charge Offs • Collection Accounts (Closed & Open) • Late Payments Derogatory Items may not affect your score for all 10 years however, the information is still there.

16. What’s Done is Done • Bring all existing accounts current • If you are past due on accounts bring them up to date , Save the ones you can • Call Creditors • Payment Plans, Settlements • Call the Collector’s Back • Find out what can be done to handle the account • Find out who the original Creditor was

17. Starting Out or Over….. • Build a relationship with your Financial Institution • Checking & Savings in good order • Keep a balance – Zero is not a balance Building a relationship with your financial institution will give you and advantage when you are ready to start applying for credit again.

18. Who Can Help? • Your Financial Institution • See more than your credit, they see you and your account history with them • Credit Unions • Built on helping. Usually have time to review and talk through your situation. • Credit Card Companies • Bigger pockets, can take bigger risks, have specific re-start programs

19. Some Options……….. • Start Small • $100 - $500 Signature Loan • Share Secured / CD Secured • Use your own money to borrow against • Co-Signer / Joint Borrower

20. Keeping It real…………. • The Past is the Past • Know your past, don’t repeat it • Know your limits • Don’t keep high limits on C. Cards • Don’t buy to maximum capacity, Give yourself some room • Mix it up • Don’t stick with one type of Credit Line • Auto, Home, CC

21. Important……… • Keeping documentation on negative history and having an explanation for it is very important. • New Creditors want to know that You know where you’ve been and how you got there.

22. CORE CREDIT HABITS • Pay your bills on time • Keep Balances low and credit lines low • Apply for Credit in moderation • Healthy Mix of Credit • Monitor co-signed loans • Monitor your reports often

23. Common Myth • Checking your own credit report does not cause your credit score to decrease, contrary to popular rumor. You can check your credit reports as often as you would like without harming your credit score. Only when you apply for new credit or loans does a “hard inquiry” cause about a 5 point drop in your score.

24. What about Aventa • Products and Services • Many products and services to help on the road to recovery • CD/Share Secured Loans • Low limit/Low Rate Credit Lines • Personal Loans, Auto, Mortgage • Multiple types of savings accounts • We can talk • Take the time to understand you and your situation • Trained Underwriters who will review and be honest

25. Helpful Sights • Free Credit Report www.annualcreditreport.com • Credit Report Information www.credit.com