Automotive Outreach Program from a Car Dealer; Life Beyond Bankruptcy

1. Saturday June 17, 2006 Pointe Hilton Squaw Peak Resort

4. “ That’s GREAT that you want to collect money from me on that credit card account with the 24% APR interest charges… Do you have something to write with? Write this down: Bankruptcy #97-11852WWB, and don’t ever call me again!” Slide

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13. If you needed to get through a maze, and the quality of your life depended upon it… Would you follow the guy that already learned how to find his way through it? Slide

14. Rebuilding Your Credit Rating 1. Acquisition Of Debt 2. Repaid As Scheduled 3. Good Credit Rating & FICO Score

18. Pay down 90 - 100% of revolving balances If the starting FICO score was: 670 Then, based on this action the simulated FICO score could be in the following range: Provided by myFICO® If the starting FICO score was: 640 Then, based on this action your FICO score could be in the following range: Pay down 90 - 100% of revolving balances 700-740 How revolving accounts (credit cards, department store credit cards, revolving lines of credit) are managed is heavily weighted in the FICO score. FICO scores evaluate revolving accounts in a variety of ways, including comparing balances to available credit, as well as looking at the number of accounts with a balance. A general rule to remember: consistently carrying lower balances on revolving trade lines will generate positive points for a FICO score. This simulation was based on paying down 90 - 100% of revolving balances.

19. Pay down 90 - 100% of revolving balances If the starting FICO score was: 670 Then, based on this action the simulated FICO score could be in the following range: Provided by myFICO® If the starting FICO score was: 640 Then, based on this action your FICO score could be in the following range: Pay Bills On Time for the next 6 months 660-700 Paying bills on time is a substantial factor that can affect a FICO score. Generally speaking, a score will remain stable as bills are paid on time. If there is some history of late payments, how recently they occurred is important. The more recently they happened, the more impact they can likely have on a score. As they age, their impact on a score can gradually lessen. This simulation was based on making payments on all bills for the next 6 months.

20. Pay down 90 - 100% of revolving balances If the starting FICO score was: 670 Then, based on this action the simulated FICO score could be in the following range: Provided by myFICO® If the starting FICO score was: 640 Then, based on this action your FICO score could be in the following range: Pay Down Balances 680-720 Having revolving accounts (credit cards, department store credit cards, revolving lines of credit) with balances is heavily weighted in the FICO score. FICO scores evaluate revolving accounts in a variety of ways, including comparing balances to available credit, as well as looking at the number of accounts with a balance. A general rule to remember: having outstanding revolving credit balances hurts your FICO score, paying them off raises your FICO score. This simulation was based on paying down $1500 of overall balance.

21. Pay down 90 - 100% of revolving balances If the starting FICO score was: 670 Then, based on this action the simulated FICO score could be in the following range: Provided by myFICO® If the starting FICO score was: 640 Then, based on this action your FICO score could be in the following range: Pay an Installment Loan as Agreed 685-725 Making timely payments on installment accounts such as auto, marine and RV loans is heavily weighted in the FICO score. FICO scores evaluate installment accounts in a variety of ways, including comparing beginning balances to current payoffs, as well as looking at the number of payments made on time. A general rule to remember: having outstanding installment loans with a history of current payments raises your FICO score. This simulation was based on 12 monthly payments on a $15,000 loan.

22. Are you making payments on the same car that you had when you filed for Bankruptcy? Slide “ Money Down the Drain”

23. How do we acquire the Right Kind of Debt after a Bankruptcy? Good Debt vs. Bad Debt?

24. Revolving (charge) Accounts = Bad Debt

25. Non-Collateralized Loans = Unjustifiable Debt

26. Installment Accounts = Good Debt

27. “ See the Future” through the eyes of those who passed this way before us…

29. The first step in acquiring “good debt” is to begin preparing your stipulation portfolio Your record of steady income and your personal investment into acquiring the collateral is the first place to start Proof of Income Including current pay stubs, bank statements, 1040’s, Schedule C’s Down Payment or Trade-In > enough to cover Tax, License & Fees

30. 3 Years Work History including addresses and phone numbers Proof of Income Including current pay stubs, bank statements 1040’s, schedule C Down Payment or Trade-In Your work history and proof of income are the most important part of verifying your ability to repay your loan 2

31. 3 Years Work History including addresses and phone numbers Proof of Income Including current pay stubs, bank statements 1040’s, schedule C Down Payment or Trade-In 4 – 8 Full Personal References including addresses and phone numbers Never underestimate your credibility gain from multiple and detailed references 3

32. 3 Years Work History including addresses and phone numbers Proof of Income Including current pay stubs, bank statements, 1040’s, Schedule C Down Payment or Trade-In 4 - 8 Full References including addresses and phone numbers Residency: Utility bills, voter registration, Phone bills, Cable TV bills Paying your domestic bills on time can be leveraged as evidence of “Credit History” 4

33. 3 Years Work History including addresses and phone numbers Proof of Income Including current pay stubs, bank statements, 1040’s, Down Payment or Trade-In 4 - 8 Full References including addresses and phone numbers Residency: Utility bills, voter registration, Phone bills, Cable TV bills Proof of Insurance & Drivers License Vehicle Sale and Finance Terms, Budget, Rent, Insurance, car payment, all reported debt in Line with Lender Program 5

36. Basic Information at top of Credit Report

41. Chase Does Not Like me… But…

42. ? They seem to have given me an unexplained credit card account! Watch for Unknown Accounts that show up unexplained!

43. Current Auto Financing Included in BK Discharge

45. Take action to correct the false reporting that follows a BK discharge… Discharged debts are not past due!

46. Installment Accounts Paid or Paying as Agreed Raises your credit score

50. Credit Score Analysis About your Credit Score: Your Credit Score is formulated using the information in your credit file. Your score helps potential lenders, landlords, and employers quickly gauge your credit history and decide what kind of a risk they are taking if they approve your application. Your Credit Score can range between 330 and 830, with a higher score indicating a lower risk. There are many scoring models used in the marketplace. The type of score used, and its associated risk levels, may vary from lender to lender. But regardless of what scoring model is used, they all have one purpose: to summarize your creditworthiness. Keep in mind that your score is just one factor used in the application process. Other factors, such as your annual salary and length of employment, may also be considered by lenders when you apply for a loan. What your Credit Score means: Your credit factors indicate that you will likely be seen as having average credit. Lenders may want to review potential trouble areas in your credit history and may require additional documentation before approving a loan. Offers, such as auto loans, may have higher interest rates and may require a higher initial down payment. You can increase your chances of receiving more favorable credit card and loan offers by building a history of good credit behavior. Provided by myFICO® Handout

51. What this means to you: Credit scoring helps companies better understand how to serve you. And the overall benefits of credit scoring are passed on to the consumer, such as faster credit approval, reduction in human error and bias, consistency, and better terms and rates for you through reduced costs and losses for lenders. While lenders may use different scoring models to determine how you score, and each major credit bureau has its own method for calculating credit scores, the scoring models have been fairly well standardized so that a score at one bureau is roughly equivalent to the same score at another. Below are common factors that are both positively and negatively affecting your Credit Score. Provided by myFICO® Handout

53. What factors lower your Credit Score: Your payment history shows one or more payments that were late by 30 days or more. Late payments count negatively against your credit score. If you want to improve your score, one of the best ways is to pay all your bills on time, every time. Although negative information can stay on your credit report for up to seven years (up to 10 years for bankruptcies and 15 years for unpaid tax liens), if you pay overdue bills and make payments on time, your good efforts to improve your credit habits may be recognized by lenders. (N-A) Provided by myFICO® Handout

55. Why should I review my credit files from all three credit reporting agencies? Each credit bureau records information it receives from your creditors. You can’t control which credit reporting agency (Equifax®, Experian® or TransUnionSM) your lender uses, so prepare yourself by checking your credit files and credit scores from the three credit reporting agencies for accuracy. What is a credit score? A credit score is based on variables in your credit file that help determine your creditworthiness. The credit scoring number is based on various factors, including the number of trade lines you have open, the number of late payments, delinquencies, etc. Lenders look at your credit file and other factors to determine your creditworthiness. Provided by My Complete Credit .com® Handout

56. Why is my credit score so important? Lenders carefully consider your credit score because it provides them with an objective measure of your creditworthiness. Your credit score can be impacted by many factors such as late payments, delinquencies or high amounts of debt. Lenders may deny your loan or charge you a high interest rate if you have a low credit score. If you have a good credit history, you may have more options available to you resulting in lower interest rates and potentially big savings. Lower loan rates can mean thousands of dollars in your pocket over the years. If you purchase a home for $250,000 at 8.3% interest you will pay $679,306 over the course of a 30-year mortgage. At 6.5 % interest, however, you will pay only $568,861 — a savings of $110,445. Handout Provided by My Complete Credit .com®

59. 6 Steps to Better Credit (continued) 4. Shred your documents. Be sure to destroy any piece of paper with Social Security Number or credit card numbers. Thieves often go through garbage retrieving people’s identification so they can use this information to commit credit fraud. 5. Don’t give information away. Never include your Social Security number on checks or driver’s license. Be extremely cautious how you use your Social Security number; it is your key personal identification number that is a gateway to your personal identity. If required to provide this information, always ask if there is another option. Provided by myFICO® Handout

60. 6 Steps to Better Credit (continued) 6. Check your online credit report and credit score on a regular basis. The only way to protect your name and credit is to be proactive. With the rise of identity theft cases, it is important to review your credit files, and to report any inaccuracies to the major credit reporting agencies. When consumers access their own credit reports, it does not count as a lender inquiry. Provided by myFICO® Handout

62. Question and Answer Session