Managing Your Credit Report and Scores. Apprisen

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Managing Your Credit Report and Scores. Apprisen. 800.355.2227 www.apprisen.com"

Transcription

1 Managing Your Credit Report and Scores Apprisen

2 Managing Your Credit Report and Scores Your credit score is one of the most important aspects of your personal finances. From credit approval to interest rates you are charged, your credit score can either hurt you or help you. Find out how your credit score is generated and reported. With that knowledge you can take steps to positively influence your credit history, obtain credit approval, and receive better interest rates. Contents Credit Reporting Bureaus 3 Why Having Good Credit Is Important 4 Why You Need to Know What is on Your Credit Report 5 Information on Your Credit Report 6 Your FICO Credit Score 11 What Your Credit Score Means 13 Rebuilding Your Credit 14 Establishing Credit 15 How Long Something Stays on Your Credit Report 16 Correcting Errors on Your Credit Report 17 Apprisen Can Help You. 18

3 Credit Reporting Bureaus A credit report is like a financial report card. It contains information that creditors report to the credit bureaus regarding your accounts. The credit bureaus act as a library that houses the information that the creditors send. They do not put anything on the report that the creditors haven t provided. There are three major credit bureaus Experian, Equifax and TransUnion. One is not better than the others and creditors can choose to report to as many as they elect or none of them. If you are applying for any type of credit and want to ensure it is being reported, ask. This holds especially true for car loans secured from buy here pay here car lots. Many consumers wrongly assume that their payments are being reported, but find out later, they are not. 3

4 Why Having Good Credit Is Important The information contained on your credit report is used in many different ways. Creditors use it to evaluate your credit worthiness when determining credit limits, interest rates and whether you will qualify for the credit at all. Service providers, such as utility companies and cell phone carriers, use it to determine if you could be at risk of defaulting on your payments. Based on the information on the report, deposits could be required before the service will be provided. Some employers pull a credit report before making a job offer. However, you will need to sign a release to give them authorization to do so. Your house and car insurance premiums could be higher if you have bad credit. Even many car rental businesses will pull your credit report if you don t have a major credit card, denying you the rental if your credit is not up to par. The bottom line is if you have bad credit or no credit, you could be spending more money on higher interest rates than you need to be. Let s look at the impact on interest rates, payments, and ultimately the cost of a car loan based upon different credit scores: LOAN AMOUNT $25,000 $25,000 $25,000 LENGTH OF LOAN 48 Months 48 Months 48 Months INTEREST RATE 4% 10% 17% MONTHLY PAYMENT $ $ $ TOTAL INTEREST ON LOAN $2, $5, $9, EXTRA INTEREST CHARGED - $3, $7,

5 Why You Need to Know What is on Your Credit Report You need to know what s on your report for three reasons: 1. Get your head out of the sand. The only way you can get a realistic view of your finances is to have a clear picture of what you owe. Your credit report will give you a summary of how many open accounts you have and their balances. You might not be aware of some outstanding debts that are being reported. 2. Check for inaccuracies. Looking at your report, you might find accounts that are not being reported correctly. You may have paid off a balance that is not reflected or find that a creditor is reporting a late payment when it wasn t. We will discuss in detail later how to dispute inaccurate information on your report. 3. Guard against identity theft. Unless you are getting phone calls or letters from a collection company trying to collect on a debt that isn t yours, you may not realize that your identity has been stolen and used to open up accounts. By checking your report, you can determine whether all the accounts listed are ones that you are responsible for. How do you get a copy of your credit report? You are entitled to one free copy of your credit report from each of the three credit bureaus every 12 months through annualcreditreport.com. A good suggestion would be to pull a copy from a different bureau every four months so you will be looking at your credit on a consistent basis. For example, pull an Equifax report today, four months from now an Experian report and four months after that a TransUnion report. In addition, under federal law you are entitled to a free credit report if a company takes adverse action against you, such as denying your application for credit, insurance or employment from the credit bureau of which the decision was made. If a credit score was a factor in the decision to deny you credit or receive less favorable terms, the report will also include the credit score. You can request the report up to 60 days after you receive notification. You can also receive a free report every year if you re unemployed and plan on looking for a job within 60 days, if you are on welfare, or if your report is inaccurate because of fraud. Credit Score Myth I don t need to check my credit report if I pay my bills on time. Even if you pay your bills on time, creditors make mistakes or you could be a victim of identity theft. It is important to regularly check your credit report for accuracy. 5

6 Information on Your Credit Report Identifying Information and Employment Your identifying information listed will include all names, aliases, and addresses, as well as current and previous employers. Name Jane Doe Social Security Number Birthdate 4/15/1965 Address 123 Apple Lane Anywhere, OH Current employer Previous employer 456 Dove Street Flying High, CA Pretend Manufacturing Nice Time Employer Credit Score Myth All credit reports are the same. Creditors can choose what bureau, if any, to report your credit information. Therefore, each report could contain different information. 6

7 Credit Summary Your credit summary is a listing of all accounts, balances, payment history and inquiries listed on the report. This example shows 4 revolving accounts that total $5,678 and one is at least 30 day past due. A revolving account is an account where you have a different payment each month depending on the account balance. You have the option to pay off the account or revolve the balance to the following month. The account remains open until the consumer or creditor closes it. There are a total of 6 accounts on this summary and the other two accounts are most likely installment loans, for example, mortgage, car or student loans. An installment loan, unlike a revolving account, has the same monthly payment until the balance is paid off. The total debt included in this report is $127,428. All accounts are open and there have been 4 inquiries. Revolving Accounts Count 4 Balance 5678 Current 3 Total Accounts Count 6 Balance 127,428 Current 5 Account Summary Open 6 Closed 0 Public Records 0 Inquiries (Prev 2 years) 4 7

8 Account History Your account history indicates the creditor s name, partial account number, date opened, balance, account ownership, your responsibility on the account, high balance, last date reported, payment history, past due amount and remarks. In this example, the account is held by XYZ Bank and is a revolving account with a current balance of $2,750 and a minimum monthly payment of $55. The account was opened September of 1998, has a credit limit of $5,000 with the highest balance being $3,500. The account is current but was 90 days delinquent from June through August of 2011 and was delinquent again in January Creditor Name - Account Number (i.e XYZ Bank) 1234-XXXX-XXXX-XXXX Account Type Revolving Responsibility Individual Monthly Payment $55 Date Opened 9/1998 Balance $2750 Credit Limit $5000 High Balance $3500 Past Due $0 Remarks Current, was 90 days past due Payment History Year One 2012> 2011> OK OK OK OK 30 OK Ok OK OK OK OK OK OK OK OK OK OK 8

9 Public Records A public record is a legal document that is issued by a state or federal court and is accessible to the public. Documents such as foreclosures, bankruptcy, judgments, and tax liens could be listed on the credit report. The example below shows a bankruptcy was filed on 3/25/2006 and discharged on 5/25/2006 for $65,700. The reference number would indicate the bankruptcy case number in the county the individual filed in. Bankruptcy Type Chapter 7 Bankruptcy Status Discharged Date Filed 3/25/2006 Reference Number B Closing Date 5/25/2006 Court County Exempt amount 0 Asset amount 0 Remarks Inquiries Your inquiry section contains a list of everyone who accessed your credit report within the last two years. It contains both your hard and soft inquiries. A hard inquiry is one where you have requested credit and a soft inquiry could be when lenders access your report to make you a pre-approved credit offer or increase your credit score. Many service providers, for example, cell phone or utility companies, pull a credit report before opening an account. It is a good practice to ask if that is a hard or soft inquiry. Creditor Name Date of Inquiry Bank of USA 9/7/2009 Orange Mortgage Company 10/1/2011 9

10 Your Credit Score Your credit score is a number which many creditors and service providers use to assess your credit worthiness. The higher the score the more likely you will receive lower interest rates or be asked to make smaller deposits. There are many different scoring models; however, the most widely used is the FICO score, developed by Fair Isaac. This is the scoring model we will cover. The FICO score ranges from and is calculated by the information listed on your report payment history, amounts owed, length of credit history, new credit, and types of credit. This is the scoring model we will cover. Amount of Debt 30% Payment History 35% 35% New Credit 10% Types of Credit Used 10% Length of Credit History 15% Credit Score Myth Closing accounts helps your score. In actuality, closing accounts can affect your credit utilization which could hurt your score. 10

11 Your FICO Credit Score Payment History 35% Your FICO score considers payment history as the most important factor in determining your credit score. It takes into account:: 1. Recency How long since the most recent delinquency, collection or public record items 2. Severity What was the highest level of delinquency reached 30, 60, 90 days + 3. Frequency How many credit obligations have been delinquent Amount of Debt 30% Your FICO score considers the amount of debt you owe in relation to the amount of credit you have available. This is referred to as your credit utilization. FICO recommends that your credit card utilization ratio (CUR) be kept below 30%. For example, if you have a credit card limit of $1,000 you should keep a balance of $300 or less on that card. The following example illustrates how closing an account can impact your CUR. There are 5 open credit cards with a total credit limit of $25,000. Total balances are $7,500 leading to a CUR of 30%. However, if you closed out a card with a $10,000 limit that has a zero balance you see that your CUR increased to 50%. To figure your credit utilization take the amount of credit you are using and divide that by the amount of credit you have available. Total credit limit of 5 cards is $25,000. Close one zero balance credit card with a limit of$10,000 Total credit limit of 4 cards is $15,000. Total Balances of $7,500. Total Balances of $7, % Credit utilization 50% Credit utilization 11

12 Length of Credit History 15% Your FICO score considers how long all of your accounts have been open, including the age of your oldest account, the age of your newest account and an average age of all your accounts. It also looks at how long it has been since you used certain accounts. Inquiries 10% Your FICO score considers how many hard inquiries have been made to your credit file in the past two years. However, it also allows for rate shopping for mortgages, cars or student loans. Any of those types of inquiries made within 30 days counts as just one inquiry when determining your score. Types of Accounts 10% Your FICO score considers the mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Closing out an account does not prevent it from being part of that percentage. Maintaining a Good Credit Score The factors in determining your credit score are only guidelines. Your overall credit score is determined by the information in your report. It is impossible to measure how your credit score will be affected by a single factor without looking at the whole report. Because of the combined information on the report differs between individuals, a change in one factor could impact two people very differently. To maintain a good credit score: 1. Pay your bills on time. 2. Keep your balances low. 3. Leave your accounts open, even if you are not using the card. 4. Only open up credit when you need it. 5. Have a variety of credit accounts credit cards, car loans, retail cards, mortgage loans. Credit Score Myth Checking my credit report will hurt my score. Your score will not be affected when you pull your credit report. 12

13 What Your Credit Score Means A low credit score can be an obstacle in obtaining credit or services. But what constitutes a low credit score is very subjective. One lender might approve applicants with a score of 650 or higher, while another lender might not issue credit for scores below 700. Often, if approved, the higher the credit score the better the terms and conditions on the account. The FICO score operates within the range of The following gives a general breakdown on what your credit score means. Bad Credit Poor Credit Fair Credit Good Credit Excellent Credit < > % 51% 31% 14% 5% 2% <500 83% 1% Based upon data from Fair Isaac. This illustration shows the different FICO credit score ranges and the probability that a person whose credit score falls within that range will default on a credit obligation according to Fair Isaac s calculation. FICO s data indicates that people with higher credit scores are more likely to repay their debt then those with lower credit scores. For example, a person with a credit score of 560 defaults on a loan 51% of the time while a person with a credit score of 720 only 5%. Lower credit scores mean higher risks to lenders. In the event a loan is approved, lenders will often charge higher interest rates to cover their loss in the event the loan is not repaid. 13

14 Rebuilding Your Credit If you have gone through a difficult financial situation and your credit has suffered as a result, don t throw up your hands and assume you will always have bad credit. What you are doing today has more impact on your credit score than what you did last month. Here are some things that you can begin to do to help bring up that credit score: 1. Pay your bills on time. Establish a system to ensure your bills are paid in a timely manner. Have them paid automatically out of your account, set up online reminders, or do it the old fashioned way, write due dates on a calendar. 2. Reduce debt. Create a monthly spending plan by reviewing your current spending and identifying your priorities. Cut back on things that are less important to free up extra income to apply towards reducing your debt. Then, make a list of all your creditors, outstanding balances, minimum payments and interest rates on your accounts so you have a clear picture of your total debt obligations. A good strategy to help pay off debt more quickly is to make minimum payments on all your accounts except for the account with the lowest balance (or highest interest rate) and apply any additional money you have in your budget to that account. Once that is paid off, take that payment and apply it to the next account. 3. Keep balances low. Make sure you are using less than 30% of your available credit. 4. Apply for credit only when you need it. Don t be tempted to save 10% at your favorite retail store to open a credit card. Not only does the inquiry affect your score, you might be tempted to make an impulsive purchase in the future. Credit Score Myth A divorce decree automatically severs joint accounts. If you are a joint holder on an account, you are responsible for the balance of that account, regardless of what the divorce decree states. If your ex-spouse refuses to pay what the court ordered, contact your attorney for legal advice. 14

15 Establishing Credit Establishing credit can be tricky. Sometimes lenders won t give you credit because you don t have any, but how are you going to get it if they don t give it to you? Here are a few ideas to help you get started: 1. Open a bank account. Although that alone won t provide you a credit history, it will allow you to begin a relationship with a financial institution. Maintain that account in good standing- don t overdraw it. Most banks offer overdraft protection. If approved, this line of credit is often reported to the credit bureaus. 2. Open a credit builder loan at a bank or credit union. Many financial institutions have loans available that will help establish credit. One type of loan is a savings loan. With this loan you would make payments to yourself which is deposited into a savings account. The financial institution would report your payment to the credit bureaus. When the loan is paid off, the balance of the savings account is yours. This type of loan will not only help you establish credit, it will help you build an emergency savings account. 3. Pay all your bills on time. Even though your rent, electric and cell phone bills are not reported on your credit report, those types of payments are considered service credit and could help you when applying for traditional credit. Sometimes, you might be able to provide creditors with statements showing on time payments for these accounts that will support your credit worthiness. Keep in mind, although making on time payments on these accounts don t get reported, it s possible that if these accounts go past due and are sent into collections, they may be. 4. Apply for a credit card. If you have an account at a financial institution, that would be a good place to start. If you are not successful, shop online for credit cards for which you are most likely to qualify. Creditcards.com is a good source that will outline your options. Don t apply for too many cards at one time, multiple inquiries to your report could hurt, not help, your credit chances. Also consider a department store card. Often, their credit requirements are lower than a financial institution. When applying for any type of credit, make sure you ask if the creditor reports to the credit bureaus. 5. Open a secured card. Many financial institutions offer secured credit cards. These cards are guaranteed by a deposit that you make into a savings account; if you don t make a payment, they withdrawal the funds from your account. 6. Become an authorized user on an existing account. In this case, someone who has an established credit card account can add you as an authorized user. The activity on the account is reported to both credit reports. 15

16 How Long Something Stays on Your Credit Report Most things fall off the credit report after a given period of time. However, student loans, taxes, and judgments can be listed longer per individual state statutes. But, if you haven t paid the debt, just because it is not listed on the report doesn t mean you still don t owe it. In most instances: Negative account information - 7 years after the date of delinquency Paid/Closed accounts no delinquencies 10 years from paid/closed status Chapter 7 bankruptcy 10 years after it s been discharged Chapter 13 bankruptcy 7 years after it s been discharged Judgments 7 years from filing date Foreclosures 7 years from the filing date Hard inquiries 2 years If you believe something should have fallen off the report, you can dispute the information with the credit bureaus. 16

17 Correcting Errors on Your Credit Report Under the Fair Credit Reporting Act, you have the right to dispute anything you believe is inaccurate information on your credit report. The credit bureau and the organization that provided the information are responsible for correcting inaccurate or incomplete information. Tell the credit reporting agency what you believe is inaccurate. Send a letter explaining your dispute. Provide as many details as possible and enclose copies of paperwork that will support your claim. State what action you want them to take. It is a good idea to enclose a copy of your credit report highlighting the inaccurate information. Send your letter, return receipt requested, so that you can confirm that the credit bureau received your request. Keep copies for your records. All three bureaus are accepting disputes online with Experian accepting only online disputes. For a sample of a dispute letter, click here. The agency has 30 days to respond back to your request and report the inaccuracy to the other bureaus. Equifax Equifax Disputes P.O. Box Atlanta, GA Experian Experian Disputes All disputes with Experian are handled online. TransUnion TransUnion Disputes 2 Baldwin Place, P.O. BOX 1000 Chester, PA

18 Apprisen Can Help You. Financial Stress Test Apprisen created the Financial Stress Test to help you measure your level of financial stress. Just answer some easy questions about your financial habits and in less than five minutes you will have a clear indication of whether your finances are healthy or require immediate action. The test it free and painless. Take the Financial Stress Test. Credit Health Education Session Apprisen will pull your tri-merge credit report and review it with you. We ll help you understand your report as well as the effects that your behavior can have on your credit score. Together, we will create an action plan to ensure your personal finances stay on track. Financial Counseling Apprisen has provided non-profit financial counseling to thousands of consumers for almost 60 years and we can help you as well. From basic personal finances to HUD approved housing counseling and bankruptcy counseling, our certified Financial Services Specialists can help you get your finances on the right track. Find out more about Apprisen s services by calling: Or, by visiting our website: apprisen.com/get-started Apprisen apprisen.com

Understanding Credit Reports and Scores and How to Improve It!

Understanding Credit Reports and Scores and How to Improve It! Understanding Credit Reports and Scores and How to Improve It! Robin Minor, CCCC What Will We Cover? When we are finished, you will understand: Credit Reports and Credit Scores - What they are and how

More information

Understanding Credit Reports and Scores and How to Improve it!

Understanding Credit Reports and Scores and How to Improve it! Understanding Credit Reports and Scores and How to Improve it! Apprisen What Will We Cover? When we are finished, you will understand: Credit Reports and Credit Scores - What they are and how they are

More information

Understanding and managing your credit

Understanding and managing your credit Understanding and managing your credit Overview Understanding how credit works and how it affects your chances of getting approved for a loan is important. In this presentation, you ll learn helpful ways

More information

Understanding Your Credit Report

Understanding Your Credit Report Understanding Your Credit Report What is credit? Credit is the use of someone else s money in exchange for a promise to pay it back on a given date. There are two major types of credit: Revolving and Installment.

More information

Your Credit Report. P.O. Box 15128 Spokane Valley, WA 99215 800.852.5316 www.hzcu.org

Your Credit Report. P.O. Box 15128 Spokane Valley, WA 99215 800.852.5316 www.hzcu.org Your Credit Report P.O. Box 15128 Spokane Valley, WA 99215 800.852.5316 www.hzcu.org You may not think about them every day, but your credit report and the three little digits that make up your credit

More information

Financial payment profile Fair Isaac Corporation (FICO) 300 to 850 the higher, the better

Financial payment profile Fair Isaac Corporation (FICO) 300 to 850 the higher, the better What is a credit score? Financial payment profile Fair Isaac Corporation (FICO) 300 to 850 the higher, the better National distribution of FICO scores What a low score could cost you? Tens of thousands

More information

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net Your Credit Report 750. 670. 620. 575. You may not think about them every day, but your credit reports and the three little digits that make up your credit score probably influence your life in many ways.

More information

How to improve your FICO Score in perilous times By Blair Ball. National Distribution of FICO Scores

How to improve your FICO Score in perilous times By Blair Ball. National Distribution of FICO Scores How to improve your FICO Score in perilous times By Blair Ball When you re applying for credit whether it s a credit card, a car loan, a personal loan or a mortgage lenders want to know your credit risk

More information

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net

Your Credit Report. 595 Market Street, 16th Floor San Francisco, CA 94105 888.456.2227 www.balancepro.net Your Credit Report 750. 670. 620. 575. You may not think about them every day, but your credit report and the three little digits that make up your credit score probably influence your life in many ways.

More information

The West Virginia State Treasurer s Office. A free publication provided by

The West Virginia State Treasurer s Office. A free publication provided by YOUR CREDIT SCORE A free publication provided by The West Virginia State Treasurer s Office Visit www.wvtreasury.com or Call 1.800.422.7498 From the Office of West Virginia State Treasurer, John D. Perdue

More information

How to Use Credit. Latino Community Credit Union & Latino Community Development Center

How to Use Credit. Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & Latino Community Development Center How to Use Credit Latino Community Credit Union & the Latino Community Development Center www.latinoccu.org Copyright

More information

Financial Empowerment Curriculum Moving Ahead Through Financial Management. Workshop Credit Overview

Financial Empowerment Curriculum Moving Ahead Through Financial Management. Workshop Credit Overview Financial Empowerment Curriculum Moving Ahead Through Financial Management Workshop Credit Overview 1 Workshop Objectives Explain why credit is important. Access and read a copy of your credit report.

More information

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives

Introduction. Purpose. Student Introductions. Agenda and Ground Rules. Objectives Introduction Instructor and student introductions. Module overview. 1 2 Your name. Student Introductions Your expectations, questions, and concerns about credit. Purpose will: Show you how to read a credit

More information

PNC Financial Education FINANCIAL OPS. Banking Solutions for Military Personnel. Credit: Self study Guide

PNC Financial Education FINANCIAL OPS. Banking Solutions for Military Personnel. Credit: Self study Guide PNC Financial Education FINANCIAL OPS Banking Solutions for Military Personnel Credit: Self study Guide Revision Date: 11/2012 PNC Financial Education:FINANCIAL OPS Understanding Credit We all have financial

More information

Financial Empowerment Curriculum. Moving Ahead Through Financial Management. Module Three: Mastering Credit Basics

Financial Empowerment Curriculum. Moving Ahead Through Financial Management. Module Three: Mastering Credit Basics Financial Empowerment Curriculum Moving Ahead Through Financial Management Mastering Credit Basics Reviewing, Understanding and Improving Your Credit Module 3: Mastering Credit Basics Time Clock: 11:00-12:00

More information

UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor

UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor UNDERSTANDING YOUR CREDIT REPORT (Part 1) By Bill Taylor Most studies about consumer debt have only focused on credit cards and mortgages. However, personal debt also may include medical expenses, school

More information

Credit Reports & Credit Scores

Credit Reports & Credit Scores Credit Reports & Credit Scores Reviewing: Information that is and isn t in your credit report. What information determines your credit score. Tips to improve your credit score. What s In Your Credit Report

More information

Improve Your Financial Status: Remove the Errors on Your Credit Report

Improve Your Financial Status: Remove the Errors on Your Credit Report When life happens... Improve Your Financial Status: Remove the Errors on Your Credit Report How to correct errors on your credit report and boost your credit score Don't Let Credit Report Errors Harm Your

More information

Improve Your Credit Put Bad Credit Behind You

Improve Your Credit Put Bad Credit Behind You Improve Your Credit Put Bad Credit Behind You Improve your credit While it s possible to get by without credit, access to credit is essential for buying a home, financing a car or getting a credit card.

More information

CREDIT BASICS About your credit score

CREDIT BASICS About your credit score CREDIT BASICS About your credit score Your credit score influences the credit that s available to you and the terms (interest rate, etc.) that lenders offer you. It s a vital part of your credit health.

More information

IMPROVE YOUR CREDIT SCORE. Effective Credit Management At Your Fingertips

IMPROVE YOUR CREDIT SCORE. Effective Credit Management At Your Fingertips IMPROVE YOUR CREDIT SCORE Effective Credit Management At Your Fingertips Introduction In this ebook, you will get valuable information including: What is a credit score The score breakdown Managing your

More information

Credit Reports. published by AAA Fair Credit Foundation

Credit Reports. published by AAA Fair Credit Foundation Credit Reports published by AAA Fair Credit Foundation Credit Reports 1. What is a Credit Report?..........................................................2 2. What Your Credit Report Reveals About You...................................4

More information

Taking Charge of Your Financial Future

Taking Charge of Your Financial Future Taking Charge of Your Financial Future Why is Your Credit Score Important? Understanding credit scoring can help you manage your credit. By knowing how credit risk is evaluated, you can take actions that

More information

Understanding Credit. Megan Stearns, Credit Counselor

Understanding Credit. Megan Stearns, Credit Counselor Understanding Credit Megan Stearns, Credit Counselor Obtaining your free credit report will lower your credit score. Closing old accounts can help your credit score. Paying off the balances on your credit

More information

Your Credit Report. Trade lines. The bulk of a credit report is dedicated to your history of handling credit. It includes:

Your Credit Report. Trade lines. The bulk of a credit report is dedicated to your history of handling credit. It includes: Your Credit Report The three major credit bureaus in the United States are Experian, TransUnion, and Equifax. These companies acquire data from banks, credit unions, mortgage lenders, and retail establishments.

More information

Solving the Credit Puzzle. L G & W Federal Credit Union

Solving the Credit Puzzle. L G & W Federal Credit Union Solving the Credit Puzzle L G & W Federal Credit Union Knowledge Check How much do you already know about credit scoring? Sample Credit Report Credit Bureaus Equifax TransUnion Experian Who Can Pull Your

More information

CREDIT REPORT: Adapted from the National Consumer Law Center Inc s. brochure entitled, The Truth About Credit Reports and Credit Repair Companies.

CREDIT REPORT: Adapted from the National Consumer Law Center Inc s. brochure entitled, The Truth About Credit Reports and Credit Repair Companies. CREDIT REPORT: HOW TO CHECK YOUR CREDIT Getting a copy of your credit report is important because: it gives you an idea of what your credit history looks like, you can make sure that the information on

More information

Office of Student Financial Management

Office of Student Financial Management September 2013 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 information

Reviewing C Your Credit Report

Reviewing 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 information

Credit Report The single most important document for protection against identity theft.

Credit Report The single most important document for protection against identity theft. Understanding your Credit Report The single most important document for protection against identity theft. What to do if you spot errors A recent study shows that 79 percent of credit reports contained

More information

About credit reports. Credit Reporting Agencies. Creating Your Credit Report

About credit reports. Credit Reporting Agencies. Creating Your Credit Report About credit reports Credit Reporting Agencies Credit reporting agencies maintain files on millions of borrowers. Lenders making credit decisions buy credit reports on their prospects, applicants and customers

More information

Understanding Your FICO Score. Understanding FICO Scores

Understanding 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 information

GREENPATH FINANCIAL WELLNESS SERIES

GREENPATH FINANCIAL WELLNESS SERIES GREENPATH FINANCIAL WELLNESS SERIES UNDERSTANDING YOUR CREDIT REPORT & SCORE Through financial knowledge and expertise, we provide high-quality products and services that enable people to enjoy a better

More information

How do I get good credit?

How do I get good credit? Slide 1 Credit The information provided in this e-course is intended for educational purposes only and does not constitute specific advice for you as an individual. When evaluating your particular needs,

More information

Your Credit Report 595 Market Street, 16th Floor, San Francisco, CA

Your Credit Report 595 Market Street, 16th Floor, San Francisco, CA Your Credit Report 750. 670. 620. 575. You may not think about them every day, but your credit report and the three little digits that make up your credit score probably influence your life in many ways.

More information

Understanding Credit. The Three C s of Credit. What is a Credit Bureau?

Understanding Credit. The Three C s of Credit. What is a Credit Bureau? Understanding Credit By definition, the word credit has to do with trust. This is why credit impacts so many financial issues in our lives including the extension of a loan or credit card, how high an

More information

Office of Student Financial Management

Office of Student Financial Management February 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 a

More information

Make the most of your credit score

Make the most of your credit score Make the most of your credit score Consolidated Credit 5701 West Sunrise Boulevard Fort Lauderdale, FL 33313 1-800-210-3481 www.consolidatedcredit.org Congratulations on taking this important step to learn

More information

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by:

Credit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Credit Workshop What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Concept Checklist What will I learn today? [ ] What is Credit? [ ] Advantages/

More information

YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights

YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights YOUR GOOD CREDIT The Importance of Your Credit Report and Your Credit Score Maintain Good Credit Combat Identity Theft FACT Act Rights WHY YOU NEED TO KNOW ABOUT CREDIT REPORTS & CREDIT SCORES Having good

More information

Credit Scores. www.howtogainwealth.com. Copyright 2009 How to Gain Wealth. All rights reserved.

Credit Scores. www.howtogainwealth.com. Copyright 2009 How to Gain Wealth. All rights reserved. Credit Scores Why is my Credit Score important? Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses

More information

The AFI Resource Center is pleased to provide this presentation about credit reports.

The AFI Resource Center is pleased to provide this presentation about credit reports. The AFI Resource Center is pleased to provide this presentation about credit reports. This is one of several presentations developed for AFI grantees on a variety of financial education topics, including

More information

Your Credit Repair Solution

Your Credit Repair Solution Your Credit Repair Solution Introduction Your Credit Report Solution will help you understand that there is help available for fixing your credit. Even though you might feel as though you are alone and

More information

MAKE THE MOST OF YOUR CREDIT SCORE

MAKE THE MOST OF YOUR CREDIT SCORE MAKE THE MOST OF YOUR CREDIT SCORE A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management organization. Consolidated

More information

Understanding Credit Scoring

Understanding Credit Scoring The Ultimate Guide to Understanding Credit Scoring www. Table of Contents The Basics Of Credit Scoring...3 5 Factors That Make Up A Credit Score...4 Rate Shopping...6 Late Payments...7 Common Credit Myths...8

More information

YOUR CREDIT SCORE. Payment History - 35%

YOUR CREDIT SCORE. Payment History - 35% YOUR REDIT SORE Many of our clients are concerned about their ability to obtain credit in the future. There are several issues related to those concerns. redit reporting agencies (Experian, Equifax, and

More information

Your Credit Report What It Says about You

Your Credit Report What It Says about You Your Credit Report Your Credit Report What It Says about You Most people finance their homes with mortgages and pay for their cars with loans. Young people often obtain loans to pay for college. And, of

More information

CREDIT REPORTS & SCORES:

CREDIT REPORTS & SCORES: CREDIT REPORTS & SCORES: A Guide to Understanding and Improving Your Credit NYLAG Financial Counseling Division Workshop Financial Counseling Division New York Legal Assistance Group (212) 613-5000 NYLAG

More information

About your credit score. About FICO Score. Other names for FICO Score. http://www.myfico.com/crediteducation/creditscores.aspx

About your credit score. About FICO Score. Other names for FICO Score. http://www.myfico.com/crediteducation/creditscores.aspx http://www.myfico.com/crediteducation/creditscores.aspx About your credit score Your credit score influences the credit that s available to you and the terms (interest rate, etc.) that lenders offer you.

More information

Earning Extra Credit. Understanding what it takes to maintain and manage good credit now and for your future

Earning Extra Credit. Understanding what it takes to maintain and manage good credit now and for your future Credit 101 Why Credit is Important 3 Your Credit Score 5 FICO Scoring - From Good to Bad 7 Credit Bureaus 8 Credit-Worthy vs. Credit-Ready 9 Are you Drowning in Debt? 10 2 Why Credit is Important College

More information

Understanding Your Credit Score and Credit Report. George Williams, CPA, JD, LLM Ross, Rosenthal & Company, LLP June 21, 2012

Understanding Your Credit Score and Credit Report. George Williams, CPA, JD, LLM Ross, Rosenthal & Company, LLP June 21, 2012 Understanding Your Credit Score and Credit Report George Williams, CPA, JD, LLM Ross, Rosenthal & Company, LLP June 21, 2012 What is a Credit Score? What is a Credit Report? A credit score is a number

More information

UNDERSTANDING Your CREDIT REPORT & SCORES

UNDERSTANDING Your CREDIT REPORT & SCORES UNDERSTANDING Your CREDIT REPORT & SCORES www.credit.org Promoting Financial Literacy About Springboard Springboard is a non-profit organization founded in 1974. We offer personal financial education and

More information

Brought to you by PEPCO FCU. Seminar objectives

Brought to you by PEPCO FCU. Seminar objectives Take Charge: Wise Use of Credit Cards Brought to you by PEPCO FCU Seminar objectives Learn: Benefits and costs of credit cards How to build a good credit history Warning signs of too much debt How to figure

More information

M A K E T H E M O S T O F YO U R C R E D I T S C O R E

M A K E T H E M O S T O F YO U R C R E D I T S C O R E M A K E T H E M O S T O F YO U R C R E D I T S C O R E A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management

More information

Topic 3 Credit Report

Topic 3 Credit Report Topic 3 Credit Report Questions to Think About: What are the different types of credit and why is credit important? What are its advantages and disadvantages? What is a credit report? How do you read it

More information

TABLE OF CONTENTS. CHAPTER 1: Credit Report.. Page 1. CHAPTER 2: Credit Score...Page 3. CHAPTER 3: Credit Reporting Agencies.

TABLE OF CONTENTS. CHAPTER 1: Credit Report.. Page 1. CHAPTER 2: Credit Score...Page 3. CHAPTER 3: Credit Reporting Agencies. TABLE OF CONTENTS CHAPTER 1: Credit Report.. Page 1 CHAPTER 2: Credit Score.....Page 3 CHAPTER 3: Credit Reporting Agencies.Page 6 CHAPTER 4: How to get a FREE Credit Report Page 8 CHAPTER 5: The 4 th

More information

Understanding Your Credit Score and How You Can Improve It

Understanding Your Credit Score and How You Can Improve It Understanding Your Credit Score and How You Can Improve It How is your score calculated? The exact formula is a mystery and protected by the Federal Trade Commission Think of it as a secret recipe. Credit

More information

CREDIT REPORTS WHAT EVERY CONSUMER SHOULD KNOW ABOUT MORTGAGE EQUITY P A R T N E R S

CREDIT REPORTS WHAT EVERY CONSUMER SHOULD KNOW ABOUT MORTGAGE EQUITY P A R T N E R S F WHAT EVERY CONSUMER SHOULD KNOW ABOUT CREDIT REPORTS MORTGAGE EQUITY P A R T N E R S Your Leaders in Lending B The information contained herein is for informational purposes only. The algorithymes and

More information

Understanding Your Credit Score

Understanding Your Credit Score Understanding Your Credit Score Contents Your Credit Score A Vital Part of Your Credit Health...... 1 How Credit Scoring Helps You........ 2 Your Credit Report The Basis of Your Score............. 4 How

More information

Understanding Your FICO Score

Understanding Your FICO Score Understanding Your FICO Score 2013 Fair Isaac Corporation. All rights reserved. 1 August 2013 Table of Contents Introduction to Credit Scoring 1 What s in Your Credit Report 1 Checking Your Credit Report

More information

Credit Reports and Credit Scores

Credit Reports and Credit Scores Credit Reports and Credit Scores This program is made possible by a grant from the FINRA Investor Education Foundation through Smart Investing@Your Library, a partnership with the American Library Association.

More information

Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money.

Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money. TEACHER GUIDE 7.3 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the 3 responsibilities of borrowing money. Your Credit Score Priority Academic Student Skills Personal

More information

Credit Score Management Seminar. Manage, protect and improve your Credit Score!

Credit Score Management Seminar. Manage, protect and improve your Credit Score! Credit Score Management Seminar Manage, protect and improve your Credit Score! Overview What is a Credit Score How Lenders Use Your Credit Score How Your Credit Score Impacts You What Makes Up Your Credit

More information

12 common questions. About consumer credit and direct marketing

12 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 information

BalanceTrack. The World of Credit Reports

BalanceTrack. The World of Credit Reports BalanceTrack The World of Credit Reports Credit reports and credit scores influence our lives in many ways. Your history of credit management can affect the cost of the credit you receive, your ability

More information

Building a CREDIT REPORT. Federal Trade Commission consumer.ftc.gov

Building a CREDIT REPORT. Federal Trade Commission consumer.ftc.gov Building a CREDIT REPORT Federal Trade Commission consumer.ftc.gov Shopping for a car? Applying for a job? Looking for a home? Getting your financial house in order? It s time to check your credit report.

More information

Tracking Your Credit History By Mark Schug

Tracking Your Credit History By Mark Schug By Mark Schug Financial institutions (banks, savings and loan associations, credit unions, and consumer finance companies) are private, profit seeking businesses. They expect to be paid back most of the

More information

www.olsonadvisory.net Credit Repair Kit

www.olsonadvisory.net Credit Repair Kit www.olsonadvisory.net Credit Rating Credit Scores Clearing Credit Mistakes Registering a Dispute Clearing Open Collection Accounts Sample Letters Credit Repair Kit Re-Aging Accounts Building Credit Letters

More information

Credit Repair: Self-Help May Be Best

Credit Repair: Self-Help May Be Best FTC Facts For Consumers Federal Trade Commission For The Consumer December 2005 www.ftc.gov 1-877-ftc-help Credit Repair: Self-Help May Be Best You see the advertisements in newspapers, on TV, and on the

More information

Understanding Credit Reports

Understanding Credit Reports Understanding Credit Reports What is a Credit Report and Score? Your success in managing credit is reflected in your credit report and score. A credit report is a history of everything you are doing with

More information

Understanding, managing, and rebuilding your credit

Understanding, managing, and rebuilding your credit Understanding, managing, and rebuilding your credit Objective Bank of America is committed to providing information that will help you understand the effect credit can have on lending, and what you can

More information

Facts On Credit Bureaus

Facts On Credit Bureaus Facts On Credit Bureaus The following information relates to the understanding and use of a credit score. Listed are details regarding the determination of a credit score, how you can find out what your

More information

Understanding your Credit Score

Understanding your Credit Score Understanding your Credit Score Understanding Your Credit Score Fair, Isaac and Co. is the San Rafael, California Company founded in 1956 by Bill Fair and Earl Isaac. They pioneered the field of credit

More information

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs

What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What We Need to Know About. Credit Management & Credit Repair for Entrepreneurs What is Credit? When someone lends you money, and you pay them back with interest, they have extended you credit. Credit

More information

CREDIT SCORE A COMPREHENSIVE GUIDE TO YOUR. arborfcu.org

CREDIT SCORE A COMPREHENSIVE GUIDE TO YOUR. arborfcu.org A COMPREHENSIVE GUIDE TO YOUR CREDIT SCORE You hear a lot of things about your credit score and how important it is, but how much do you really know about it? Courtesy of Arbor Financial Credit Union This

More information

Understanding How Insurers Use Credit Information

Understanding How Insurers Use Credit Information Understanding How Insurers Use Credit Information UNDERSTANDING HOW INSURERS USE CREDIT INFORMATION Many personal auto and homeowners insurance companies look at several factors, including consumer credit

More information

Credit Histories & Credit Scores

Credit Histories & Credit Scores Credit Histories & Credit Scores Credit Histories - Definition A continuing record of a borrower s debt commitments and how well they have been honored. (Similar to a transcript) Credit Score - Definition

More information

IMPROVING YOUR CREDIT AND DEBT

IMPROVING YOUR CREDIT AND DEBT IMPROVING YOUR CREDIT AND DEBT The Credit & Debt Problem Americans are loaded with credit-card debt. The average American household with at least one credit card has nearly $15,950 in credit-card debt

More information

Understanding Your Credit Score Contents Your Credit Score A Vital Part of Your Credit Health...... 1 How Credit Scoring Helps You........ 2 Your Credit Report The Basis of Your Score............. 4 How

More information

Credit Reports Credit Scores. Understanding reports and scores Correcting errors Obtaining a free report

Credit Reports Credit Scores. Understanding reports and scores Correcting errors Obtaining a free report Credit Reports Credit Scores Understanding reports and scores Correcting errors Obtaining a free report What goes into your credit report...and who uses it? A A credit report is a summary of your financial

More information

PRACTICAL MONEY GUIDES CREDIT HISTORY. Your credit history and how it affects your future

PRACTICAL MONEY GUIDES CREDIT HISTORY. Your credit history and how it affects your future PRACTICAL MONEY GUIDES CREDIT HISTORY Your credit history and how it affects your future YOUR CREDIT HISTORY THE RECORD OF HOW WELL YOU HANDLE CREDIT To get a glimpse of your financial future, many businesses

More information

R E PA I R YOUR CREDIT

R E PA I R YOUR CREDIT R E PA I R YOUR CREDIT A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management organization. Consolidated

More information

Build a Strong Credit History. Brought to you by The New York University Federal Credit Union

Build a Strong Credit History. Brought to you by The New York University Federal Credit Union Build a Strong Credit History Brought to you by The New York University Federal Credit Union Seminar Objectives Learn: Who needs to build good credit, and why Significance of credit report and score How

More information

Understanding Your FICO Score

Understanding Your FICO Score Understanding Your FICO Score Contents Your FICO Score A Vital Part of Your Credit Health............ 1 How FICO Scores Help You................. 2 Your Credit Report The Basis of Your FICO Score..............

More information

Credit Repair Made Easy

Credit Repair Made Easy Credit Repair Made Easy A simple self help guide to credit repair By Don Troiano Introduction My name is Don Troiano and I spent over 15 years in the mortgage industry. Knowing how to guide customers in

More information

Secrets of the Credit Score UCCS Employee Seminar 10/21/2014

Secrets of the Credit Score UCCS Employee Seminar 10/21/2014 Secrets of the Credit Score UCCS Employee Seminar 10/21/2014 Schuyler (Skip) Wells, Ent Federal Credit Union Question!! What do credit reports, the number of and use of credit cards, inquiries, credit

More information

CreditAbility: Build a Strong Credit History. Brought to you by Duke University FCU

CreditAbility: Build a Strong Credit History. Brought to you by Duke University FCU : Build a Strong Credit History Brought to you by Duke University FCU Seminar Objectives Learn: Who needs to build good credit, and why Significance of credit report and score How to establish credit if

More information

Repair Your Credit. Step1: Start where you are. Rebuilding Good Credit

Repair Your Credit. Step1: Start where you are. Rebuilding Good Credit REPAIR YOUR CREDIT A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management organization. Consolidated Credit

More information

Student Loans and Credit Reports

Student Loans and Credit Reports Student Loans and Credit Reports We Will Discuss The role of credit in personal finance Review of credit terms and factors Impact of student loans on reports and scores Next steps you can take to encourage

More information

Student Loans and Credit Reports

Student Loans and Credit Reports Student Loans and Credit Reports Presented by: Debbie Murphy We Will Discuss: The role of credit in personal finance Review of credit terms and factors Impact of student loans on reports and scores Next

More information

Your Credit Score. 800-491-2328 www.congressionalfcu.org. score of at least 620 for approval and 760 for the best interest rate.

Your Credit Score. 800-491-2328 www.congressionalfcu.org. score of at least 620 for approval and 760 for the best interest rate. 800-491-2328 www.congressionalfcu.org Your Credit Score Your credit score can have a major impact on your life. Not only do creditors typically check your score when deciding whether or not to approve

More information

Understanding Your Credit Report

Understanding Your Credit Report What Is a Credit Report? Understanding Your Credit Report A credit report is a record of your history of credit-card debt and other loan repayment. It shows how much debt you have and if you pay on or

More information

Credit Scoring. 1-800-444-RATE www.gogsf.com

Credit Scoring. 1-800-444-RATE www.gogsf.com Credit Scoring 1-800-444-RATE www.gogsf.com Your credit score is a major factor that will be considered by the lender when they review your loan application. They want to know what your credit history

More information

Credit Reports and Identity Theft

Credit Reports and Identity Theft Credit Reports and Identity Theft Information in this packet concerning credit reports was gathered from the Consumer Financial Protection Bureau and can be found at www.consumerfinance.gov. Information

More information

YOU and YOUR CREDIT: Credit Reports 1

YOU and YOUR CREDIT: Credit Reports 1 FCS7232 YOU and YOUR CREDIT: Credit Reports 1 Michael S. Gutter, Joan P. Elmore, and Travis P. Mountain 2 Credit Report Basics Whether or not you are considering making a major financial move, it s a good

More information

Credit History CREDIT REPORTS CREDIT SCORES BUILDING A STRONG CREDIT REPORT

Credit History CREDIT REPORTS CREDIT SCORES BUILDING A STRONG CREDIT REPORT CREDIT What You Should Know About... Credit History CREDIT REPORTS CREDIT SCORES BUILDING A STRONG CREDIT REPORT YourMoneyCounts Understanding what your credit history is what s in it, what s not in it

More information

Understanding a Credit Report! April 21, 2011. New York City Department of Consumer Affairs. All rights reserved.

Understanding a Credit Report! April 21, 2011. New York City Department of Consumer Affairs. All rights reserved. Understanding a Credit Report! Questions to Think About What are the different types of credit and why is credit important? What is a credit report? How does credit impact future financial goals? 3 What

More information

REVIEW.The Credit Process

REVIEW.The Credit Process REVIEW.The Credit Process Credit when goods, services, and/or money are received in exchange for a promise to pay back a definite sum of money at a future date. Wants to acquire an item Does not have enough

More information

Road to Good Credit.

Road to Good Credit. Road to Good Credit. Now is the time for you to start building your credit. Why is credit important to you? Where can you fi nd your credit history? How do you get started? Have you ever wondered how to

More information

Credit Reports. published by AAA Fair Credit Foundation

Credit Reports. published by AAA Fair Credit Foundation Credit Reports published by AAA Fair Credit Foundation Credit Reports 1. What is a Credit Report?...2 2. What Your Credit Report Reveals About You...................................4 3. Getting a Copy

More information