Managing Credit in the Current Economic Climate
|
|
- Arleen Nichols
- 6 years ago
- Views:
Transcription
1 Managing Credit in the Current Economic Climate January 2009
2 Introduction The economic crisis and tight credit markets necessitate careful management of small business finances and credit history. Obtaining credit is challenging right now, even for entrepreneurs with strong finances and a track record of paying bills on time. Some entrepreneurs who are unable to obtain loans or trade credit are resorting to using credit cards, personal savings, home equity loans or early withdrawals from retirement funds. You can benefit from a keen awareness of your credit profile, and this white paper provides tips to improve your credit rating. The paper also includes debt management advice and a step-bystep worksheet to assist you in determining your fiscal fitness. A glossary demystifies key credit and business terms. Use this tool to help improve your odds of obtaining the financing you need to survive this downturn and flourish when the economy rebounds. 1 P age
3 Building Your Business Credit Assess Your Finances A good starting point for obtaining credit is to determine the strength or weakness of your financial position. The biggest mistake that small businesses make is failing to track revenues and expenses rigorously, according to Gene Fairbrother, Lead Business Consultant at the National Association for the Self-Employed (NASE). This lack of financial oversight results in a murky grasp on whether a business is operating at a profit or loss. Most businesses don t know where they are today, Fairbrother said. It s beyond them to even guess where they will be in six months. If you think you might need a business loan in three to six months, Fairbrother recommended doing whatever you can now to make your business as profitable as possible so it will be attractive to a prospective lender. Also ensure that you have a solid reason for the loan, such as buying equipment or inventory to expand your business or covering a temporary cash crunch. Prospective lenders will be less interested in loaning you money to meet your payroll or dig yourself out of a severe financial crisis since these are not necessarily business-building activities. To assess your odds of obtaining credit, put yourself in the shoes of a risk-averse lender. Many financial institutions use these 5 Cs to determine whether a business is creditworthy: Capacity: Do you have sufficient cash to service the loan as well as potential future loans? Character: What is your credit history? Are you trustworthy? Collateral: What non-cash business assets can you use to secure a loan? Capital: What is your business s net worth? What is your personal net worth? Conditions: What is the loan s intended purpose? Should any outside factors be considered, such as the current economic situation? Make Information Accessible The profitability of your business is one input in an assessment of your credit strength. Lenders and potential vendors may also review the following sources of information about your company to gain a full picture of your creditworthiness: Credit activity reports from other businesses, utility companies and the like. Credit activity reports and deposit data from financial institutions. Commercial scores that reflect a business s likelihood of making payments on time. Examples include Dun & Bradstreet s PAYDEX score, which reflects a business s payment habits, and Fair Isaac s Small Business Scoring Service (SBSS) SM. You play an important role in making it easy for lenders to use all available information to determine the value of your business. Strive to keep your personal and business assets separate, thereby helping to reduce the impact that business problems might have on your personal credit. 2 P age
4 This important step will also enable you to establish your company s credit history. To do this, set up business checking and savings accounts, loans and credit lines, and credit or charge cards, and use them exclusively for your business. Very small companies, sole proprietorships and new businesses may have difficulty separating their business and personal assets. These companies typically have very limited business credit information, and, therefore, lenders often rely on what is called a blended score, which is a combination of the personal credit scores of the principal(s) and available business credit data. The business is one aspect of the owner s history, but a lender is also going to look at the owner s personal history. There s no separation between the two at the early stages, Fairbrother explained. If the individual s history is bad, they won t ignore it. 3 P age
5 Reviewing Your Credit Report A business credit report offers a snapshot of a company s credit history. By reviewing your own report, you can see how attractive you appear to suppliers and lenders. Similarly, you can look at reports on potential vendors and suppliers to determine if you want to do business with them. Key areas to consider in your review include: Company data: A credit report will include a company s name, address and telephone number, as well as other information such as business type, number of employees, years in business, sales figures and key officers. Make sure this accurately reflects your business and report any discrepancies. Credit risk rating: Most credit reports include a rating system to help companies determine your potential risk of making late or delinquent payments. Factors include past payment performance and legal filings. Because of the current economic situation, a high risk rating will be taken very seriously. Payment history: Companies review this section to see how well you pay your bills. If they notice several months of late payments, they may be less inclined to do business with you. Conversely, if you were behind and show a trend of timely payments, it may indicate that you have fixed whatever problems you had. Collections: If your report shows a history of letting bills lapse or having accounts sent to collection, you will seriously jeopardize any chances of getting a loan or signing up a new supplier. If you have an explanation for a late payment, such as a dispute over delivery of merchandise, save all documents so you can explain your situation. Legal issues: Your credit report includes whether you have filed for bankruptcy or have any outstanding lawsuits, liens or court judgments. Again, be prepared to explain what happened. Depending on the circumstances, a pending lawsuit or legal action might not mean anything, but bankruptcies and liens are another story. UCC filings: Your Uniform Commercial Code (UCC) filings describe your liens and leases. If this section shows that you have several assets that have been pledged as collateral on existing loans or a large number of credit relationships with other businesses, lenders and suppliers may decide that you are too risky to assume more debt. 4 P age
6 Improving Your Credit Rating Your business s credit rating can affect access to deals, partnerships and credit. It also influences the cost of these relationships by shaping the payment terms that vendors grant or interest rates that lenders charge for business loans. Use the following tips to improve your rating: Make timely payments: Pay bills by their due dates or earlier. This shows creditors and suppliers that you are a responsible financial manager. Check your credit report regularly: Review your credit report on a regular basis at least once a year. Make sure all information is current, and be sure your report is complete. For instance, if you have an established credit relationship that isn t included, ask that creditor to notify the leading credit bureaus. Correct errors: If your report contains mistakes, such as closed accounts that are listed as active, contact the information providers to discuss how to correct them. Submit corrections in writing along with copies of all documentation that backs your claim. Keep the originals for your files. If a creditor made a mistake, contact them and request that the error be removed from your record. Get a D-U-N-S Number : Dun & Bradstreet s D-U-N-S Number is a nine-digit number that provides unique identifiers of single business entities, while linking corporate family structures. D&B links the D-U-N-S Numbers of parents, subsidiaries, headquarters and branches on more than 70 million corporate family members. Used by the world s most influential standardssetting organizations, it is recognized, recommended and/or required by more than 50 global, industry and trade associations, including the United Nations, the U.S. Federal Government, the Australian Government and the European Commission. The D&B D-U-N-S Number has become the standard for keeping track of the world s businesses. 5 P age
7 Understanding Business vs. Personal Credit Reports A business credit rating is determined by credit and business information providers. Besides Dun & Bradstreet ( other major business information providers include Acxiom ( Equifax ( and Experian ( These providers compile information and then assign a commercial or business credit score. This score is meant to help suppliers and lenders determine your likelihood to pay for goods and services, or repay a loan. In order to ensure that your business credit rating is where it should be you need to fully grasp how a business credit rating differs from a personal credit rating. There are three major differences: Multiple accounts: Having several active business checking accounts all in good standing can raise your credit score. This is different from personal credit, where multiple bank accounts may lower your rating. It demonstrates that your business is savvy about managing its finances. Self-reported data: Some of the information in your business profile may be self-reported. You can do this by establishing a profile with the leading credit and business information providers. Supplier assistance: Business creditors don t have to report payments to the information providers, so you may need to ask them to report your payment performance. The information providers strive to make their data as accurate as possible. That s our job. We want to be sure that we represent your business with the most complete and timely information to the many financial institutions, vendors and suppliers that rely on D&B s information to make decisions regarding your business, said Donna Vieira, Leader of the Small Business Credit Products Group at Dun & Bradstreet. 6 P age
8 Glossary of Key Credit and Business Terms Deft management of your credit report requires an understanding of credit report terms as well as important financial vocabulary. Review the following list to best prepare yourself. Balance Sheet: A summary of a business s financial condition including assets, liabilities and net worth at a specific point in time. Capital Expenditures: Money used for the acquisition of a long-term asset. Collateral: Assets pledged to secure a loan. Commercial Credit Score : This score from Dun & Bradstreet is designed to predict the likelihood that a business will pay its bills in a severely delinquent manner (90 days or more past term), obtain legal relief from creditors or cease operations without paying all creditors in full over the next 12 months, based on the information in D&B s files. A severely delinquent firm is defined as a business with at least 25% of its payments slow and at least 10% of its payments 90 days or more past due. Company Profile: Details about a business, including its name, address, age, business structure, officers and industry. Credit Information Provider: A third party that collects information about the credit transactions of businesses or consumers and supplies the data to lenders and businesses. Credit Rating: A ranking of a business that evaluates the risk of late payment. The rating is based on a number of factors, including a review of a business s transaction history and past payment performance and legal filings. Credit Report: Information detailing a company s payment history, existing credit obligations, legal filings and background. D-U-N-S Number : A number used to uniquely identify a business in Dun & Bradstreet s database. D-U-N-S, which stands for Data Universal Numbering System, has become the standard for keeping track of the businesses around the world. Financial Statement: A written report that describes the financial status of an individual or business. Fixed Asset: A long-term asset, such as real estate, equipment or furniture, that isn t expected to be converted into cash in the current or upcoming fiscal year. Leverage: The degree to which a business is using borrowed money. Highly leveraged businesses may be at risk of going bankrupt. 7 P age
9 Line of Credit: A promise from a bank or vendor to extend a specific amount of unsecured credit to a borrower for a period of time. A line of credit is usually used for short-term loans. PAYDEX : A score between 0 and 100 generated by Dun & Bradstreet that reflects a business s likelihood of making payments on time. Principal: The outstanding balance of a loan, not including interest owed. Revenue: The total amount of money a business receives for goods sold or services provided during a specified amount of time. Secured Credit: A line of credit backed with collateral, such as cash reserves, inventory or other assets. Sole Proprietorship: A business structure in which the owner has full control and unlimited liability. Unsecured Credit: A line of credit not backed by specific collateral. Trademarks, registered trademarks and service marks are the property of their respective owners. 8 P age
10 Worksheet: Give Your Business a Credit Check up The economic crisis and tightening of the credit market have made it imperative for small businesses and entrepreneurs to maintain high credit scores personally and for their businesses. The key component of sound credit includes a clean credit report. Use this worksheet to move through the steps required to help you assess your credit. 1. Build a Solid Framework It falls upon you to review your business credit profile annually and address any issues. The first step to take is to obtain copies of your credit report from the major business information providers and review them, making any necessary corrections or clarifying any discrepancies. Major business information providers include Acxiom ( Dun & Bradstreet ( Equifax ( and Experian ( Have you checked your business s credit report in the past year? Yes No Not sure If you answered Yes, determine when you last checked it. If information needed to be corrected or updated, it s a good idea to check the report again and move onto question 2. If you answered No, immediately order a copy of your report and move onto question 2. If you answered Not sure, it s wise to order a copy just so you don t close any avenues you may need to take. 2. Resolve Errors or Discrepancies List any items in your report that need to be resolved, including the action item required (e.g., submit corrections yourself or follow up with vendors or the business information providers to ensure that changes are made). Action Item You Vendor Information Provider 9 P age
11 3. Rebuild Relationships If your profile contains delinquent information, list the action items you will take to improve your credit (e.g., contact vendor about payment, pay bill on time or early). Action Item Completed Still Must Do 4. Reduce Expenses If you think you might need a business loan in the near future, you need to make your business as profitable as possible. List any expenses that you may be able to lower (e.g., office supplies, phone bills, advertising, staffing). Business Expense Potential Savings 10 P age
UNDERSTANDING BUSINESS CREDIT
YOUR GUIDE TO UNDERSTANDING BUSINESS CREDIT POOR YOUR BUSINESS CREDIT PROFILE GOOD SPONSORED BY UNDERSTANDING YOUR PERSONAL CREDIT PROFILE Every small business owner has two credit profiles: 1. Your personal
More informationTable of Contents. 4 What Are Business Credit Scores? 8 How Business Credit Can Affect a Business Steps to Establishing Business Credit
1 Table of Contents 4 What Are Business Credit Scores? 8 How Business Credit Can Affect a Business 10 6 Steps to Establishing Business Credit 12 Can Business Owners Build Business Credit Fast? 14 How Business
More informationProject Pro$per. Credit Reports and Credit Scores
Project Pro$per Presents Credit Reports and Credit Scores Participant Guide www.projectprosper.org www.facebook.com/projectprosper Based on Wells Fargo s Hands on Banking The Hands on Banking program is
More informationAdvantage Reports Content Guide
Advantage Reports Content Guide Additional Industry Trade Payment Data by Month from Ansonia Dominating the factoring, trucking and logistics industries, Ansonia is quickly becoming known as the best alternative
More informationShort Term Loans and Lines of Credit
Short Term Loans and Lines of Credit Disadvantaged Business Enterprise (DBE) Supportive Services Program The contents of this training course reflect the views of the author who is responsible for the
More informationSmart Credit Strategies for Small Business Owners
Smart Credit Strategies for Small Business Owners Why Credit Matters When it comes to growing your business, strong credit scores can give you a significant advantage. Access to credit at good terms when
More informationUnderstanding Credit. Lisa Mitchell, Sallie Mae April 6, Champions of Financial Aid ILASFAA Conference
Understanding Credit Lisa Mitchell, Sallie Mae April 6, 2017 Credit Management Agenda Understanding Your Credit Report Summary: Financial Health Tips Credit Management Credit Basics Credit health plays
More informationUnderstanding Credit
Understanding Credit LAURA STEINBECK DIRECTOR OF BUSINESS DEVELOPMENT, SALLIE MAE 2018 MASFAP CONFERENCE Agenda 2 Credit Management Protect Yourself Understanding Credit Reports Summary: Financial Health
More informationUNDERSTANDING CREDIT. KASFAA Conference Manhattan, KS April 21, Robb Cummings Director of Business Development
UNDERSTANDING CREDIT KASFAA Conference Manhattan, KS April 21, 2016 Robb Cummings Director of Business Development FICO Score 2 A FICO Score is a three-digit number calculated from the credit information
More informationYour Credit. Objectives. An Introduction to Personal Credit. By the end of this presentation you will have a understanding of: 1/19/2016.
Your Credit An Introduction to Personal Credit Objectives By the end of this presentation you will have a understanding of: Credit Score Where can I find it? What is it? How do I get it? Advantages of
More informationReviewing C YouR CRedit RepoRt
ChapteR 2 Reviewing C YouR CRedit RepoRt What do your creditors have to say about the way you handle money? Having a good credit score can help you turn your home-buying dream into a reality. There s much
More informationReading the D&B Viability Report. Viability Rating
Reading the The D&B Viability Rating delivers a highly reliable assessment of the probability that a company will no longer be in business within the next 12 months. This report also includes the demographics,
More informationUnderstanding Credit. What it is, why it s important, and how you can maintain it. Brought to you by Sallie Mae and FICO
Understanding Credit What it is, why it s important, and how you can maintain it Brought to you by Sallie Mae and FICO Introduction A student loan may be your first major credit experience. This is a good
More informationChapter 26 11/9/2017 1
Chapter 26 11/9/2017 1 Average college students has 3 credit cards Also between $1500 & $2000 in debt Things to know if you re getting a credit card Who accepts it? What amount can you charge to meet your
More informationUNDERSTANDING CREDIT. WASFAA Conference Seattle, WA Speakers: Thalassa Naylor, Sallie Mae Anthony Lombardi, Sallie Mae Date: April 10, 2017
UNDERSTANDING CREDIT WASFAA Conference Seattle, WA Speakers: Thalassa Naylor, Sallie Mae Anthony Lombardi, Sallie Mae Date: April 10, 2017 Agenda 2 Credit Management Protect Yourself Understanding Your
More informationBusiness Owner Profile
Business Owner Profile Make sound credit decisions about small-business owners Extending credit to small businesses can be risky. Don t take chances. Use Business Owner Profile from Experian and extend
More informationD&B Scores and Ratings
D&B Scores and Ratings D&B Scores and Ratings Overview D&B Delinquency Predicr Score D&B Financial Stress Score D&B Supplier Evaluation Risk D&B PAYDEX Score D&B Rating pg pg pg pg pg 6 pg 8 Trade References
More informationGREENPATH FINANCIAL WELLNESS SERIES
GREENPATH FINANCIAL WELLNESS SERIES UNDERSTANDING YOUR CREDIT REPORT & SCORE Empowering people to lead financially healthy lives. TABLE OF CONTENTS Understanding credit reports...2 What s in a credit
More informationIntroduction Slide SET. Host Organization s Name July 30, Business Smart is a business education series developed by
Introduction Slide Business Smart is a business education series developed by SET Host Organization s Name July 30, 2015 1 Business Smart Workshop 3 Modules READY SET GO 2 Today s Presenter Add Name of
More informationTABLE OF CONTENTS. Healthier Black Elders Center
TABLE OF CONTENTS What is credit............................................1 The five C s of credit...................................... 2 Types of credit...........................................3
More informationHOW TO READ THE BUSINESS INFORMATION REPORT
HOW TO READ THE BUSINESS INFORMATION REPORT The Business Information Report (BIR) is the most widely used Dun & Bradstreet report. The BIR attempts to provide information and analysis to help you evaluate
More informationYour Guide To Better Credit
Your Guide To Better Credit INTRODUCTION Your go-to guide to better credit It seems like every other commercial on television touts some sort of offer around credit. You hear things like, Free credit report,
More informationFederal Reserve Bank of Philadelphia
Federal Reserve Bank of Philadelphia 1 When you apply for credit, whether it s a credit card, car loan, or a mortgage, lenders want to know whether you are likely to repay your loan and make the payments
More informationCredit Repair Company
6 Business Credit Secrets Every Credit Repair Company Should Know 6 Business Credit Secrets Every Credit Repair Company Should Know About Business Credit is credit that is obtained in a Business Name.
More informationGlossary of Terms. Accounts Receivable: Additional Payment Experiences: Aged Trades: Alert s: Background: Balance: Bank Accounts:
Glossary of Terms Accounts Receivable: Is one of a series of accounting transactions dealing with the billing of customers which owe money to a person, company or organization for goods and services that
More informationLaura Mackie Mortgages. A Guide to Understanding and Rebuilding Your Credit Score
Laura Mackie Mortgages Your Credit Report A Guide to Understanding and Rebuilding Your Credit Score Introduction This guide is intended to help you improve your credit score and provide you with information
More informationIntroduction The Goals and Nature of Credit Analysis
Chapter 1 Introduction The Goals and Nature of Credit Analysis Credit analysis is an art, not a science. The goal of credit analysis is to make a judgment about an obligor s ability and willingness to
More informationBuilding Business Credit
Preview Of What You Will Learn Sections: Introduction...5 Defining Business...6 Personal vs. Business The Value of Good Business...9 Foundation Building 10 Benefits of Good Business Protecting Yourself
More informationA CONSUMER S GUIDE TO INSURANCE COMPANIES' USE OF CREDIT INFORMATION
A CONSUMER S GUIDE TO INSURANCE COMPANIES' USE OF CREDIT INFORMATION INSURANCE CREDIT SCORING IN NORTH CAROLINA Insurance companies licensed to sell private passenger automobile and residential property
More informationCapacity Capital Collateral Credit history Character
Capacity Capital Collateral Credit history Character For advisor information only The 5 Cs of Credit Understanding credit qualification At B2B Bank, we know that you strive to provide your clients with
More informationYou re listening to rebuilding after a financial crisis. Hi, I m Niki, your host for today s Podcast.
Rebuilding After a Financial Crisis Podcast [Music plays] Nikki: You re listening to rebuilding after a financial crisis. Hi, I m Niki, your host for today s Podcast. There are many things in life that
More informationHow to Get Business Loans with Bad Credit
How to Get Business Loans with Bad Credit Name : Phone : Email : How to Get Business Loans with Bad Credit Most entrepreneurs think that because they have bad credit there is no chance of them getting
More informationWelcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Charge It Right 2
Charge It Right Welcome 1. Agenda 2. Ground Rules 3. Introductions Charge It Right 2 Objectives Define credit Explain why credit is important Identify the factors creditors look for when making credit
More informationS E PA R AT I N G YO U R P E R S O N A L A N D B U S I N E S S F I N A N C E S
HOW TO ESTABLISH BUSINESS CREDIT S E PA R AT I N G YO U R P E R S O N A L A N D B U S I N E S S F I N A N C E S ABOUT THE PRESENTER RICHARD BROOKS ALTERNATIVE FUNDING SPECIALIST GCA CFO GBC Chief Credit
More informationTHIS HANDY LITTLE GUIDE EXPLORES THE BASICS OF CREDIT SCORING AND CREDIT REPORTING IN AUSTRALIA. TABLE OF CONTENTS
CREDIT MADE SIMPLE THIS HANDY LITTLE GUIDE This handy little guide explores the basics of credit scoring and credit reporting in Australia. EXPLORES THE BASICS OF CREDIT SCORING AND CREDIT REPORTING IN
More informationCredit and Credit Cards
Credit and Credit Cards What s Next Project Credit Cards They are all around you. Most people have at least one. Some have many. They are credit cards. A credit card allows you to pay for merchandise or
More informationWhy is Credit Management important?
Why is Credit Management important? Cash flow is crucial for the survival and success of any business. It is generally accepted that cash flow is the single most pressing concern of most small and medium-sized
More informationD-U-N-S Number 3. Corporate Linkage 4. D&B Global Database. Quality Assurance
D&B Rating Guide D&B Risk Assessment Explained - Decide with confidence Understanding and minimising risk is fundamental to your organisation. Staying informed of any changes is the only way to grow your
More informationBusiness Owner Profile
Business Owner Profile Make sound credit decisions about small business owners Extending credit to small businesses can be risky. Don t take chances. Use Experian s Business Owner Profile and extend credit
More informationCredit Education Program
Credit Education Program Course Objectives Identify ways to decrease spending and increase income Read and understand the purpose of your credit report Discuss common debt traps to avoid How lenders evaluate
More informationAccessing Capital: 5Cs of Credit. Richard Gianni Market President, Houston Regional President, East Texas Region
Accessing Capital: 5Cs of Credit Richard Gianni Market President, Houston Regional President, East Texas Region 888.215.2373 houston@liftfund.com LiftFund.com AGENDA Who we Are What We Offer Who We Serve
More informationDoes providing FICO Scores influence financial behavior?
Power of Our Past Force of Our Future Does providing FICO Scores influence financial behavior? October 2018 Jeff Johnston, MBA Sallie Mae Ohio Association of Student Financial Aid Administrators 50th Anniversary
More informationMODULE 4 // HOW CREDITWORTHY ARE YOU? WORLD CLASS: AGES 18+
MODULE 4 // HOW CREDITWORTHY ARE YOU? WORLD CLASS: AGES 18+ MODULE 4 // FINANCIAL SOCCER PROGRAM Financial Soccer is an educational video game designed to help students learn more about the fundamentals
More informationChapter 6 - Credit. Section 6.1
Chapter 6 - Credit Section 6.1 Credit is a medium of exchange which allows individuals to buy goods or services now and pay for them later The creditor supplies money, goods, or services in a credit agreement
More informationUnderstanding Your FICO Score. Understanding FICO Scores
Understanding Your FICO Score Understanding FICO Scores 2013 Fair Isaac Corporation. All rights reserved. 1 August 2013 Table of Contents Introduction to Credit Scoring 1 What s in Your Credit Reports
More informationWhat is credit and why does it matter to me?
Understanding Credit 1 Money Matters The BIG Idea What is credit and why does it matter to me? AGENDA Approx. 45 minutes I. Warm Up: What Do You Know About Credit? (10 minutes) II. Credit: The Good, The
More informationAn interactive game designed to familiarize students with the personal finance management issues they are beginning to face as young adults Features
An interactive game designed to familiarize students with the personal finance management issues they are beginning to face as young adults Features financial questions throughout the game Like football,
More informationCredit and Going into Debt A. What is credit?
Lesson 4 standards E.6.1 Explain the basic functions of money. E.6.2 Identify the composition of the money supply of the United States. E.6.3 Explain the roles of financial institutions. E.6.6 Explain
More informationECONOMIC EDUCATION FOR CONSUMERS Chapter 10
WHAT S AHEAD 10.1 What Is Credit? 10.2 How to Qualify for Credit 10.3 Sources of Consumer Credit 10.4 Credit Rights and Responsibilities 10.5 Maintain a Good Credit Rating LESSON 10.1 What Is Credit? GOALS
More informationA credit score that means more. To lenders, borrowers and the nation.
A credit score that means more. To lenders, borrowers and the nation. Driven by a mission VantageScore Solutions is the independently managed company behind the VantageScore model, an advanced credit scoring
More informationUnderstanding Where You Stand
SMALL BUSINESS Access to Opportunity Understanding Where You Stand A Simple Guide to Your Company s Financial Statements Reading Your Statements Balance Sheets Income Statements Ratios Cash Flow Statements
More informationMODULE 7: Borrowing Basics PARTICIPANT GUIDE
MODULE 7: Borrowing Basics MONEY SMART for Adults SEPTEMBER 2018 The Federal Deposit Insurance Corporation is an independent agency created by the Congress to maintain stability and public confidence in
More informationWhat You Can Do to Improve Your Credit, Now
What You Can Do to Improve Your Credit, Now Provided compliments of: 1 What You Can Do to Improve Your Credit, Now Steps to Raise Your Score Now we re going to focus on certain steps that you can take,
More information4-Step Guide to Rebuilding Your Credit
4-Step Guide to Rebuilding Your Credit Bankruptcy Solutions 1 800.435.9138 StartFreshToday.com 1 Contents 3 4 5 8 12 16 Rebuilding Your Credit Step 1: Obtain Your Records Step 2: Identify Errors Step 3:
More informationFinancial Well-being. Debt and Credit
Financial Well-being Debt and Credit Debt and Credit When evaluating financial wellness, debt has a real impact on your ability to reach your goals. Debt feels like a four letter word. However, it can
More informationBuilding Credit. Inside this issue:
CCCS of Rochester/RethinkingDebt Headquarters: 1000 University Ave, Rochester, NY 14607 **Fall 2018** Inside this issue: Building Credit Building Credit 1 Retail Credit Cards 2 By: CCCS of Rochester Student
More informationOffice of Student Financial Management
September 2015 Office of Student Financial Management Kasia Palm: Director of Student Financial Management What is Credit? - The ability to obtain goods/services before payment based on the trust that
More informationPersonal Credit Fundamentals &
Personal Credit Fundamentals & Your Credit Score Presented by: Harvard University Employees Credit Union Harvard Student Sources of Financial Education Sources of consumer finance education Formal Program
More informationTIP: Make sure this information is correct. A wrong address or phone number could be a mistake or a sign of identity theft.
Reading a Sample Credit Report This sample report shows what kind of information might appear on your own credit report, also called a consumer disclosure statement, from the 3 major Credit Reporting Agencies
More informationTHE OFFICIAL BUSINESS CREDIT BUILDING CHECKLIST
THE OFFICIAL BUSINESS CREDIT BUILDING CHECKLIST Your Checklist to Building Business Credit Easily, Quickly & Effortlessly The Official Business Credit Building Checklist Every highly successful business
More informationRemember, your job is to manage working capital (cash) and ensure your company has enough of it to grow and to weather economic downturns.
Remember, your job is to manage working capital (cash) and ensure your company has enough of it to grow and to weather economic downturns. We encourage you to read Simple Numbers, Straight Talk, Big Profits!
More informationECONOMIC EDUCATION FOR CONSUMERS Chapter 10
WHAT S AHEAD 10.1 What Is Credit? 10.2 How to Qualify for Credit 10.3 Sources of Consumer Credit 10.4 Credit Rights and Responsibilities 10.5 Maintain a Good Credit Rating LESSON 10.1 What Is Credit? GOALS
More informationmoney management managing credit and debt
money management managing credit and debt our mission The mission of The USAA Educational Foundation is to help consumers make informed decisions by providing information on financial management, safety
More informationDealing with debt. A guide for customers
Dealing with debt A guide for customers How you can get help Banks are here to help you run your finances smoothly in a complicated world. You can get help in good and bad times. Banks understand that
More informationProfiles in Credit is designed to be flexible and meet the needs of learners in different educational settings. Examples include:
Profiles in Credit Educator Resource Guide Module Summary Profiles in Credit is a self-paced, interactive learning module in which students visit the social media profiles of three young people facing
More informationTaking Control of Your Money. Using Credit Wisely
Taking Control of Your Money Using Credit Wisely Session 4: Using Credit Wisely To help you stay financially healthy you need to understand credit. Credit is access to money that belongs to lenders (e.g.
More informationTwelve common questions. About consumer credit and direct marketing
Twelve common questions About consumer credit and direct marketing Twelve common questions Most of us don t think about credit until a specific event sparks our interest. Maybe we want to buy a car or
More informationQuestion of the Day. What percent of year olds have a credit card?
Chapter 6.1 Credit Objectives Explain the advantages and disadvantages of using credit Identify the different types of consumer credit Describe secured and unsecured loans Describe how to establish a sound
More information65 E. Wacker Place Suite 1405, Chicago, IL Ph: Fax: Credit 101
65 E. Wacker Place Suite 1405, Chicago, IL 60601 Ph: 888.895.5145 Fax: 888.895.5146 Credit 101 The subject of credit and what is included on a consumer s credit report can be a source of much debate, confusion
More informationQuick Credit Repair Guide
1 Quick Credit Repair Guide Beacon score? You will most likely have heard of this bizarre term at some point during your home buying process and wondered what they meant and how they affect the mortgage
More informationFICO Score Open Access Consumer Credit Education US Version. Frequently Asked Questions about FICO Scores
FICO Score Open Access Consumer Credit Education US Version Frequently Asked Questions about Scores 2012 Fair Isaac Corporation. All rights reserved. 1 January 01, 2012 Table of Contents About Scores...
More informationMeasuring performance
Measuring performance Business CoaCH series Importance of tracking performance How to measure performance Internal and external yardsticks Early warning system Business Coach series Is your business doing
More informationIntroduction. In short- credit is an essential part of our personal and national economic stability.
Table of Contents 2 Introduction 3 The Wait Is Over!. 4 The Five Factors that Determine your FICO Score Are: 5 What is Seasoned Trade Lines?... 7 How Do I Raise My FICO Score with Seasoned Trade Lines.
More information12 common questions. About consumer credit and direct marketing
12 common questions About consumer credit and direct marketing Most of us don t think about credit until a specific event sparks our interest. Maybe we want to buy a car or home. Or perhaps we receive
More informationA Credit Smart Start. Michael Trecek Sr. Risk Analyst Commerce Bank - Retail Lending
A Credit Smart Start Michael Trecek Sr. Risk Analyst Commerce Bank - Retail Lending Agenda Credit Score vs. Credit Report Credit Score Components How Credit Scoring Helps You 10 Things that Hurt Your Credit
More informationFebruary 2015 Wednesday Webinar ~ Credit Matters - Resources to Educate Students About Credit and Debt
February 2015 Wednesday Webinar ~ Credit Matters - Resources to Educate Students About Credit and Debt 1 Mike Fagone Jennifer Pincus Jessica Whittier Bernstein Shur US Dept. of Justice FAME 2 About CARE
More informationFinancial Guide. Northfield Enterprise Center
Financial Guide Northfield Enterprise Center 11 1 Table of Contents Introduction.3 General Vocabulary...4 Accounting Principles 5 Balance Sheets 6 Income Statements...9 Cash Flow Statements 10 Financial
More informationCash flow to grow. The best sources of working capital for SMEs
Cash flow to grow. The best sources of working capital for SMEs Content: Introduction Why is it difficult for SMEs to seek working capital? Information asymmetry Lack of collateral High cost to entry Short
More informationc» BALANCE C:» Financially Empowering You Financial First Aid Podcast [Music plays] Nikki:
Financial First Aid Podcast [Music plays] Nikki: You re listening to Financial first aid. Hi. I m Nicky, your host for today s podcast. Many circumstances in life can derail even the best plans and leave
More informationFinancing Residential Real Estate. Qualifying the Buyer
Financing Residential Real Estate Lesson 8: Qualifying the Buyer Introduction In this lesson we will cover: the underwriting process, qualifying the buyer, and factors taken into account when a buyer s
More informationGORMAN MANUFACTURING COMPANY, INC. Comprehensive Report. Executive Summary. Company Info. D&B Rating D&B PAYDEX. Predictive Analytics.
Page 1 of 14 GORMAN MANUFACTURING COMPANY, INC. D-U-N-S 80-473-5132 Headquarters 492 Koller St, San Francisco, CA 94110 Executive Summary Company Info Comprehensive Report Phone 650 555-0000 Purchase Date:
More informationwhere you stand A Simple Guide to Your Company s
UNDERSTANDING where you stand A Simple Guide to Your Company s Financial Statements SMALL BUSINESS DEVELOPMENT CENTER OF HAMPTON ROADS, INC. Where business comes to talk business. HAMPTON ROADS CHAMBER
More information13.1. Reading a Credit Report EXERCISE. THEME 4 Lesson 13: Applying for Credit NAME: CLASS PERIOD:
13.1 NAME: CLASS PERIOD: Reading a Credit Report Your ability to qualify for a loan depends on a credit report. A credit report is a record of an individual s personal credit history. It is probably a
More informationUsing alternative data, millions more consumers qualify for credit and go on to improve their credit standing
NO. 89 90 New FICO research shows how to score millions more creditworthy consumers Using alternative data, millions more consumers qualify for credit and go on to improve their credit standing Widespread
More informationTop Things To Know KOFA HIGH SCHOOL SOCIAL SCIENCES DEPARTMENT ECONOMICS - PERSONAL FINANCE WORKSHOPS # 4 - CONTROLLING DEBT
KOFA HIGH SCHOOL SOCIAL SCIENCES DEPARTMENT ECONOMICS - PERSONAL FINANCE WORKSHOPS # 4 - CONTROLLING DEBT Vocabulary Keys : Words that are in bold = are terms that appear in one of the chapters, Words
More information5 WAYS A STARTUP BUSINESS CAN GET A BUSINESS LOAN
5 WAYS A STARTUP BUSINESS CAN GET A BUSINESS LOAN 5 Ways a Startup Business Can Get a Business Loan Most entrepreneurs think that because they are only starting their business that there is no chance of
More informationMaximizing Purchasing Power: Make the Most of Your Credit Score
When life happens... Maximizing Purchasing Power: Make the Most of Your Credit Score Consolidated Credit Counseling Services, Inc. 5701 West Sunrise Boulevard Fort Lauderdale, FL 33313 1-800-210-3481 How
More informationSmall business funding options
Small business funding options 60 minutes of straight talk! Donna J. Davis Former Regional Administrator U.S. Small Business Administration 11/16/17 WiFi: QBConnect Password not required About today s
More informationA Special Report by Laura Adams, author of Money Girl s Smart Moves to Grow Rich
3 Strategies to Build Credit FAST A Special Report by Laura Adams, author of Money Girl s Smart Moves to Grow Rich 3 Strategies to Build Credit Fast Copyright 2011 SmartMovesToGrowRich.com All rights reserved.
More informationCredit Cards. Annual Percentage Rate - What you are paying each month -- unpaid balances calculated as a percentage.
Credit Cards Annual Fee - Amount you pay each year to have a credit card. Annual Percentage Rate - What you are paying each month -- unpaid balances calculated as a percentage. Balance - The total charges
More informationBusiness Information Report
1 Business Information Report Print this Report Copyright 2016 Dun & Bradstreet - Provided under contract for the exclusive use of subscriber 410999088 ATTN: Sample Report Report Printed: FEB 16 2016 In
More informationMoney Management Financial Survivor: Understanding Credit and Banking
Money Management Financial Survivor: Understanding Credit and Banking In this workshop, youth will learn about credit, the importance of maintaining good credit, and how to access their credit report.
More informationCREDIT SCORE USER GUIDE
Page 1 of 11 ABOUT EQUIFAX Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial
More informationPutting Together Your Funding Proposal
Putting Together Your Funding Proposal It Must Tell a Convincing Story and Answers Many Questions: Your Business Plan? Financial Information? Your Loan Application? Face-to-face Meeting? Most Important:
More informationImproving Your Credit
Teacher Homebuyer Guide to: Improving Your Credit By John Godbey, Founder and Broker of Teacher Homebuyer Real Estate Introduction Thank you for signing up for our E-Guide "Improving Your Credit." We find
More informationLoan Exit Counseling & Money Management. Wesleyan University May 2017
Loan Exit Counseling & Money Management Wesleyan University May 2017 Important Things to Know Understand your student loan portfolio Know what types of loans you have Know what your loan terms are: interest
More informationBuild Strong Business Credit Scores Fast
Build Strong Business Credit Scores Fast The Reasons to Build Business Credit Wells Fargo Bank -Separating Personal and Business Finances The longer you delay establishing business credit, the longer you
More informationFINANCIAL FITNESS EDUCATION
(Agency s Name & Logo) FINANCIAL FITNESS EDUCATION Sponsored by BETTER FORTUNES Control Your Money Control Your Life Knowing the difference can make all the difference Chapter One ECONOMIC WAY OF THINKING
More informationBusiness Banking Advisor
Capital One Bank Business Banking Advisor INSIDE... GET TIPS, INSIGHT AND ADVICE ON: Give your business a financial checkup Page 1 Follow these strategies to help put your financial house in order. Five
More informationTeacher's Guide. Lesson Seven. Credit 04/09
Teacher's Guide $ Lesson Seven Credit 04/09 credit websites Consumers may use credit frequently, but many struggle to manage it wisely. To optimize credit and make sound financial decisions, students need
More information