The materials presented during the webinar are for informational purposes only. They are not offered as and do not constitute an offer for a loan,

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The materials presented during the webinar are for informational purposes only. They are not offered as and do not constitute an offer for a loan, professional or legal advice or legal opinion and should not be used as a substitute for obtaining professional or legal advice. Oak Street does not endorse any

comments made by the speaker. All statements and viewpoints expressed in the comments are strictly those of the speaker alone, and do not constitute an official position of Oak Street.

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Your Credit Report:

The Basis of Your

FICO

®

Score

• Credit reporting agencies

maintain information on millions of individuals

• Lenders making credit decisions

by purchasing credit reports

• Report details of your credit history

• When/Where/How credit has

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What’s the difference?

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Is there a difference?

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What is a

credit score?

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You Have 3 Fico Scores

Equifax – Beacon

Experian – Experian/Fico Risk Model TransUnion – Fico Risk Score, Classic

• Why would my Fico scores be different? Are Fico scores the only risk scores?

Application risk scores Customer Risk Scores Other credit scores

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What is a credit score?

• Summarizes your credit risk based on a snapshot of your credit report

• Helps lenders evaluate your credit report

& estimate credit risk

• Fico – most widely used score

• Your credit score influences the credit

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How FICO Scores Work

• 3 major credit reporting agencies Equifax / Experian / TransUnion

• Fico score is calculated by a mathematical equation

• Provides a reliable guide to future risk

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How FICO scores work

707

Your FICO® Score:

GOOD

Trans Union

682 Experian

634 Equifax

707

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How FICO scores work

BAD 300-549

POOR 550-624

FAIR 625-699

GOOD 700-749

EXCELLENT 750-850

542

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What a FICO score considers

30%

Amounts Owed

35%

Payment History

10%

Types of Credit in Use

New Credit (Inquiries)

Length of Credit History

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Payment History

30%

Amounts Owed

35%

10%

New Credit Length of Credit History

35%

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Payment History

• Approximately 35% of your Fico Score is based

on this category

• Best indicator of how they may get paid

• Payment Information on many types

of accounts

• Public Record & Collection Items

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Payment History Tips

• Pay your bills on time

• If you have missed payments, get current & stay current

• Paying of a collection account or closing

delinquent account will not remove it

• Contact your creditors &/or a legitimate

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Amounts Owed

30%

Amounts Owed

35%

10%

New Credit

Amounts Owed

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Amounts Owed

Approximately 30% of your Fico score is based on this category

• Approximately 30% of your Fico score is based

on this category

• Credit Utilization

• The amount owed on all accounts

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Amounts Owed Tips

• Keep balances low on credit cards & other “revolving credit”

• Pay off debt rather than moving it around

• Don’t close unused credit cards as a short term strategy to raise your Fico score

• Don’t open credit cards you don’t need

• Avoid credit repair agencies that charge a fee to improve your score by removing negative, but accurate, information from your credit reports

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Length of Credit History

30%

Amounts Owed

35%

10%

New Credit

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Length of Credit History

• Approximately 15% of your Fico Score is based

on this category

• In general, a longer credit history will increase your Fico score

• How long your credit accounts have been established

• How long specific credit accounts have been established

• How long it has been since you used

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Length of Credit History Tips

• Don’t open a lot of new accounts too rapidly

• Think before accepting 0% interest

credit cards

• Before closing any account think about

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New Credit

30%

Amounts Owed

35%

10%

New Credit

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New Credit

• Approximately 10% of your Fico score is based on

this category

• New credit has bigger impact on newer credit profiles

• Multiple credit requests also represent greater credit risk

• How long it has been since you opened a new account • How many recent requests for credit you have

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New Credit Tips

• Shop for credit within a short period of time • Be careful about opening new accounts that

you don’t need

• Re-establish your credit history if you have had problems

• It’s OK to check your own credit report

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Types of Credit in Use

30%

Amounts Owed

35%

10%

New Credit

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Types of Credit in Use

• Approximately 10% of your Fico score is based

on this category

• The score will consider the mix of accounts

• What kinds of credit accounts you have

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Types of Credit in Use TIPS

• Apply for & open new credit accounts

only as needed

• Have credit cards – but manage

them responsibly

• Closing an account doesn’t make

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Best Practices

• Review your credit report (from all 3 agencies)

at a minimum annually

• Plan ahead before major purchases

• Report errors – Keep proof

• Monitor for Fraud / Identity Theft • Protect Your Privacy

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Contact Information

Equifax

1-800-685-1111

www.equifax.com

Experian

1-888-397-3742

www.experian.com

TransUnion

1-800-888-4213

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FAQ’s

• How does an Inquiry on my credit report affect my Fico score?

• Are Fico scores unfair to minorities?

• How does an Authorized User affect my report/score – theirs?

• Where can I find additional credit resources?

• How else can my credit report/score affect me?

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Oak Street Funding is an innovator in niche funding

providing commission-based commercial financing

for

insurance professionals nationwide.

–

Founded in 2003, we have worked with thousands

agents nationwide delivering the funding they need

to buy, build, or sell their agencies.

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Oak Street funding understands the needs of insurance agents and goes beyond providing loans and financing for insurance agencies. Our resources help you stay on top of the latest trends and learn strategies to take your agency to the next level. Oak Street Funding is happy to provide additional resources for agents including:

• The Bridge quarterly publication

• Complimentary webinars

• Personal Financial Statement Template

• Cash Flow Template

• Profit & Loss Balance Sheet Template

• ACQUIRE | GROW | SUCCEED Whitepapers

Oak Street Resources

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Bill Nicholson

Executive Director of Sales Oak Street Funding

11350 N. Meridian Street, Suite 600 Carmel, IN 46032

Tel: 317-428-3835 | Fax: 317-428-5195

Email: bill.nicholson@oakstreetfunding.com