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Staying on Top:

Staying on Top:. Credit Reports and Scores. What’s in Your Credit Report?. Personal identification information Name, address, date of birth, SSN, employment Public record information Bankruptcies, foreclosures, lawsuits, wage attachments, liens Collection agency account information.

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Staying on Top:

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  1. Staying on Top: Credit Reports and Scores

  2. What’s in Your Credit Report? • Personal identification information • Name, address, date of birth, SSN, employment • Public record information • Bankruptcies, foreclosures, lawsuits, wage attachments, liens • Collection agency account information

  3. What’s In Your Credit Report? • Credit account information • Companies that requested your credit report • Most negative information stays on your report for 7 years, except for bankruptcy which can stay up to 7 to 10 years • Defaulted student loans can stay on your credit report indefinitely

  4. Mistakes on Credit Reports • Wrong name • Clerical mistake copying handwritten name and address to electronic source • Inaccurate Social Security Number or clerical mistake in copying number • Loan or credit card payments inadvertently applied to the wrong account

  5. How to Obtain Your Credit Report • Access one free credit report a year from each credit bureau at www.annualcreditreport.com. You must contact the individual credit bureaus for the other two free reports. • EQUIFAX: 800-685-1111 www.equifax.com • EXPERIAN: 888-397-3742 www.experian.com/freestate • TRANS UNION: 800-888-4213 www.transunion.com

  6. What’s Your Credit Score? Information in your credit report is used to calculate your FICO credit score

  7. What’s Affects Your FICO Score? • Payment history • Amounts owed • Length of credit history • New credit • Types of credit used

  8. How Actions Affect Credit Scores:Examples • Charge 2 credit cards to the credit limit • Score drops from 780 to 700 • Pay off a credit account • Score increases from 600 to 680 • Pay late on a bank loan payment • Score drops from 720 to 645 • Pay all credit accounts on time • Score increases from 707 to 727

  9. What is a Good Credit Score? Over 700 = GREAT 660 - 680 = Average The higher the better! 724 790 615 680 660

  10. Your Credit Report and/or Score Impacts: • Purchasing a car • Purchasing a home • Obtaining a loan • Renting an apartment • Auto and life insurance • Acquiring a cell or home phone • The deposit on utilities • Finding employment

  11. Your Right to a Free Credit Score • Limited and new in 2011 • If a borrower is turned down for a loan or charged a rate higher than the best rate – also applies to other decisions based on credit scores (Dodd-Frank) • Lender must provide free credit report OR free credit score if a borrower is turned down for a loan or charged a rate higher than the best rate (FACT Act)

  12. Beware of Higher Cost Credit • Tax Refund Loans • Rent-to-Own • Car Title Loans • Bounced Check Protection

  13. Your Credit Rights • You have aright to know what’s in your credit report and who has received a copy (Fair Credit Reporting Act) • Creditors can’t discriminate on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program. Creditors must tell consumers specific reasons they were denied credit(Equal Credit Opportunity Act) Source: www.privacyright.org/fs/fs6-crdt.htm

  14. Your Credit Rights(Continued) • Lenders must disclose credit costs and repayment terms before you enter into a credit transaction (Truth-In-Lending Act) • You have rights when you dispute charges on a credit card bill. If a credit card is lost or stolen, your losses are limited to $50 per card ($0 if you notify the lender before the card is used) (Fair Credit Billing Act) • Debt collectors can’t harass you; they can’t call your workplace if you say no or your home after 9 p.m. (Fair Debt Collection Practices Act)

  15. Credit and Debt Counseling Services • Budget Counseling • Debt Repayment Plan • You agree to not use the cards • The debt counselor may arrange for you to make smaller payments and pay less interest and fees • You pay the debt counselor who pays your creditors • The debt counselor will not put the repayment plan on your credit report BUT creditors may

  16. For individual help with seriousdebt problems, contact: CredAbility www.CredAbility.org 800-251-CCCS

  17. For more information, contact: The Peer Financial Counseling Program (insert web address, phone number, and/or e-mail)

  18. Special Thanks to...

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