Credit Reports and Credit Scores

1. Credit Reports and Credit Scores

2. What is a credit report? • A record of your credit history that includes information about: • Your identity • Your existing credit • Your public record • Inquiries about you

3. Why is a credit report important? Lenders, insurers, employers, and others may obtain your credit report from credit bureaus to assess how you manage financial responsibilities

4. Who collects and reports credit information about me? • There are three major credit bureaus: Equifax, Experian, and TransUnion • They gather information about you that’s included in your credit report • They provide this information in the form of a credit report to companies or people that request it

5. Where do credit bureaus get their information? • Creditors, your bank, you credit card issuer, auto finance company… • Public records • Each credit bureau gets their information from different sources, so sometimes information will be different from one credit report to the next

6. Who else is allowed to see my credit report? • Lenders from whom you are seeking credit • Lenders that have granted you credit • Telephone, cell phone, and utility companies that may provide services to you • Employer or prospective employer

7. How long does negative information stay on my credit report? -7 years -If you have filed for personal bankruptcy, this will stay on your report for ten years -Criminal convictions may stay on your report indefinitely

8. What is a credit score? • Number that reflects the information in your credit report • The number summarizes your credit history • This helps lenders predict how likely it is that you will repay a loan and make payments when they are due • Can be used to determine to grant you credit, and the rate you will pay on a loan

9. Information used to calculate your credit score • The number and types of accounts you have • Whether you pay your bills on time • How much of your available credit you are currently using • Whether you have collection actions against you • The amount of your outstanding credit • The age of your accounts

10. What can cause your credit score to change? • Paying bills late (down) • Incurring more debt (down) • Paying off an outstanding balance (up)

11. What is a good credit score?