Presentation Transcript

1. Credit Reports

2. What is a Credit Report?
3. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts
4. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts - Both individuals and Companies
5. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts - Both individuals and Companies - Includes late payments and bankruptcies Used by banks, stores, and credit card companies for deciding to extend credit
6. What appears on a Credit Report? Initial Loan Amounts Borrowing Limits Current Balances Types of Credit Payment History Opening Date of Credit Recent Credit Inquiries When & Who Late Payments Bankruptcies (7 years) Previous Names and Addresses
7. Credit Scores:
8. Credit Scores: Range from 300 to 850
9. Credit Scores: Range from 300 to 850 A “good” credit score is considered to be anything over 760 3 Different reporting agencies: TransUnion Equifax Experían
10. DON’T FALL FOR THE ADS!! Most “Free” Credit Reports are NOT free! The only website that provides free credit reports is: www.annualcreditreport.com - Can obtain a report from each agency once per year
11. What Hurts a Credit Score?
12. What Hurts a Credit Score? Bankruptcies Collections Late Payments High Revolving Credit Balances High debt level Having only one type of debt Short credit history * Frequent credit inquiries
13. Who Uses Credit Scores?
14. Who Uses Credit Scores? Lenders Stores Credit Card Companies Insurance Companies Landlords Employers