Visit our SlideShare to learn from our partner, Credit Karma, why you should check and build your credit report, best practices for establishing financial health, and how to recover from debt.

1. 1
With Gibson & Eli, Bench.co
My Money Stories:
Credit Karma
Talks Finances, Credit and Debt

2. Meet the Speakers…
Jennifer Micieli, CFP®
Marketplace Insights Manager
Credit Karma
Maria Gianotti
Content Marketing
Kabbage
Moderator
#KabbageKam

3. Marketplace Insights Manager
Credit Karma
Jennifer Micieli, CFP®

4. Agenda
#KabbageKam
/CreditKarma
@creditkarma
Ø Quick Note on Personal vs. Small
Business Money Management
Ø Snapshot of Financial Health
Ø Key Markers of Credit Health
Ø How’s Your Credit Health?
Ø Check Your Credit History
Ø Know Your Credit Score
Ø Recovering From Debt
Ø Credit and Debt Pro Tips
Ø Questions
Follow us on Social:

5. Personal vs. Small Business
Money Management
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Quick Note
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6. We have resources
available regarding
business credit that you
can review after the
webinar:
• What is a Business
Credit Score?
• How to Build a Good
Business Credit Score
• Business Credit Cards
• Business Loans
Focus on Personal
Money Management
• We’ll be focusing on personal money
management, however many of the tips can
apply to managing the finances of your business
as well.
• Note: The Fair Credit Reporting Act (FCRA) could
allow a lender to review personal credit for
business purposes under specific circumstances.

7. How’s Your Financial Health?
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Snapshot
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8. Financial Health
There are many components of financial health. The following are
three areas that can give a fairly comprehensive high-level summary:
• Financial Beliefs, Goals and Habits – Expectations, Motivations and
Behavioral Tendencies
• Cash Flow – Income and Expenses (Ex: Credit Card Interest)
• Net Worth – Assets and Liabilities (Ex: Auto Loan)
We’ll be spending most of our time discussing expenses and liabilities,
specifically regarding credit and debt.
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9. What’s the Difference
Between Credit and Debt?
When you use credit, you borrow money to pay for something now
and pay it back later.
This borrowed money becomes debt, which can accrue interest on the
balance you owe.
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10. Why Do Credit and Debt Matter?
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Responsible
Use of Credit
and Debt
Credit Cards
with Higher
Rewards,
Better Interest
Rates on Loans
How do you
get that?

11. How’s Your Credit Health?
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Credit Reports & Credit Scores
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12. Credit Reports vs. Credit Scores
• Contains a detailed history of
your credit and debt accounts.
• Usually from the three major
credit bureaus.
• Equifax
• Experian
• TransUnion
• Easier to get for free.
• Credit Karma
• AnnualCreditReport.com
#KabbageKam
• A three-digit number generally
between 300-850, usually based on
information from your credit report.
• You could have many credit scores.
The most common scoring models
are:
• VantageScore
• FICO
• Harder to get for free, but generally
have to pay.
Credit Report Credit Scores

13. Build Your Credit Health Through
Responsible Credit Habits
• It’s a snapshot of how you’ve managed credit.
• Lenders use it to gauge how likely you are to repay a mortgage,
loan or credit card.
• It can affect whether or not you’re approved for credit and what
interest rates you might get.
• An excellent credit score (about 720+) shows you’re on top of your
credit.
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14. Check Your Credit History
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Credit Reports
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15. My Money Story
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Hear from others about their financial experiences and challenges.
Visit our YouTube channel for more videos and credit tips.
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16. #MyMoneyStory
#KabbageKam
#KabbageKam
My $42 Gas Bill Went
to Collections
His credit has bounced
back since then.
Michael

17. Check Your Reports Regularly
For Accuracy
According to the Federal Trade Commission, 1 in 4 people found credit
report errors that could affect their scores.
What’s considered an error?
• Errors can include accounts you don’t own or inaccurate account
information.
• Some common credit report errors include:
• A late payment that’s more than seven years old.
• A paid-off collections account that’s still showing as unpaid.
• A hard inquiry that you didn’t authorize.
• An account that isn’t yours.
Find an error? You can file a dispute.
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18. …Or Derogatory Marks
What’s considered a derogatory mark?
• Bankruptcy – A legal declaration that you cannot repay some or all of your debts.
• Foreclosure – If you can’t make payments, the mortgage company can take
possession of your property.
• Accounts in collections - Your unpaid debt was sold to a collections company.
• Tax Lien – If you don’t pay your taxes, a lien can be placed on your property.
• Civil Judgment - You are ordered to pay money as part of civil court proceedings.
What you can do if you have a derogatory mark
Work out a plan to manage your debt. Your plan might include:
• Paying off the debts.
• Focusing on keeping the rest of your credit in good shape and waiting for the
derogatory mark to fall off (this generally takes 7-10 years, though).
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19. Know Your Credit Score
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A Measure of Credit Health
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20. #MyMoneyStory
#KabbageKam
#KabbageKam
They Denied Me
Because I Had No
Credit Score
She built her credit
with an unsecured
credit card
Leah

21. Build Your Credit Health Through
Responsible Credit Habits
• Try to use less than 30% of your
available credit, and try to pay
off the balance each month.
• Try to make payments on time.
• Consider having different types
of accounts.
#KabbageKam
• Aim for a long credit history.
• Try to minimize derogatory marks,
like collections or bankruptcy.
• If possible, don’t apply for a lot of
credit. (Usually, it adds a hard
inquiry to your report).

22. Recovering From Debt
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Debt Management
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23. #MyMoneyStory
#KabbageKam
#KabbageKam
We Paid Off $51,000 of
Credit Card Debt in Less
Than 3 Years
They tackled their debt
through a lifestyle change
John & David

24. There Are Ways Out of Debt
First, ask yourself:
• What’s the lifestyle you want to have?
• What are you doing now?
• What can you do to get to where you want to be?
Next, get a sense of where you are financially.
• Look at how much you owe overall
• Review your budget
• Identify areas where you could make some changes
Finally, identify what you can do to help improve your situation.
• Make sure it’s a step you can take right away
• It’s okay if the step seems small - small steps can make it feel less overwhelming
• The critical part is to get started
• Keep going until you hit your goal
• Having a buddy to keep you accountable can help you stay on track
Examples: Cooking or entertaining at home, refinancing a loan to a lower interest rate,
reducing expenses, thinking about ways to generate more income, taking budget-friendly trips.
#KabbageKam

25. Key Takeaways:
Credit and Debt Pro Tips
• Check your credit reports on a regular basis (at least three times a year is a good place to start).
It’s possible for errors to exist.
• You can build credit by starting with a secured/unsecured credit card.
• Aim to maintain your credit health through responsible credit habits.
• Try to use less than 30% of your available credit (then pay it off)
• Try to make on-time payments
• Consider having a mix of different types of accounts
• Aim for a long credit history
• Try to minimize derogatory marks, like collections or bankruptcy
• If possible, don’t apply for a lot of credit. (Usually, it adds a hard inquiry to your credit
report.)
• It’s a good idea to build an excellent credit score before you might actually need it.
• If you’re dealing with overwhelming debt, take time to reflect on how it’s impacting your life
and where you are with your finances currently. Then, identify how you can improve your
situation and take action.
#KabbageKam

26. Get Small Business Content
Download Kabbage’s Free Comparison Hot Sheet:
Small Business Loans 101
Visit this page to download: http://kabb.ag/kabbage101

27. Contact Information
#KabbageKam
Jennifer Micieli, CFP®
Marketplace Insights Manager
CreditKarma
jennifer.micieli@creditkarma.com

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Thank you!
From us @KabbageInc