Credit Report by BeunaventuraLongjas

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This is an example of credit report. This document is useful for studying credit reportr.

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									Credit Reports & Credit

  Presented by
  Consumer Credit Counseling Service
What We Will Cover
Credit Reports and Credit Scores -
What they are and how they are
Understanding the Reports – How
to read them and why they are
Acting On the Information In Them
– What do to to maintain, correct, or
improve the information.
                      3 Major
                  Credit Reporting
Equifax    –      800-685-1111
Transunion –   800-888-4213
Experian –       888-397-3742

   Free if denied within last 60 days

   8.00/8.50 if through them for single report
   from one company

   Can also purchase trimerge reports that
   combine info from all three onto one
Free Credit Reports
        New law : one free copy of credit
        report from each of three credit
        bureaus every year.

          Annual Credit Report Request Service
           P O Box 105281, Atlanta, GA 30348-5281

        Credit Score does not come
        automatically with the free report.
Information on a Report
 Identification & employment info

 Account information & payment

 Inquiries from creditors/potential

 Public record
Sample credit report
Public, Joe        15 Any Street        325 Broad St. Someplace, USA 55555
Sam’s plumbing Welder Nice City, America 33333 03/15/52                              222-22-2222
Trade Line information
Industry    Date reported   Acct. Number High credit Balance Current rating Historical delinquency
Bankcard     05/03/92                                $5000    Current             90 – 5 yr ago
Auto loan    05/03/01                    $15,000     $9750     Current
Retail       04/24/00                    $2500      $1200      30 days
Retail       04/05/02                    $800       $700      Current
Mortgage     06/05/99                    $125,000 $115,000 Current
Credit Inquiries
Date      Industry                 Date      Industry                      Date        Industry
12/04     Bank                     5/04      Auto finance                  01/04         Retail
Public Record / Collection Items
7/03 collection $450           8/04 judgment $1500 Paid                 12/0402/05 collection $250
Fair Credit Reporting Act
  The Dispute Process
    Put it in Writing – to CRA and
    creditor in question
    CRAs must investigate – within 30
  Must delete what they can’t verify
  Must correct inaccuracies
  Must report back to you
  Accurate Negative

Negative account information will
be reported for 7 years.
Bankruptcy info – 7-10 years.
Criminal convictions info – no time
Defaulted student loans,
judgments on loans, and lawsuits
can be listed longer.
Opting Out
Credit Card Solicitations
  call 1-888-5-OPT-OUT (567-8688)
  Stops credit bureaus from selling
  your name
  Takes you off lists for two years
Do Not Call Registry
  Stops telemarketing solicitations
  Register at “” or
  Phone number valid on list for 5
   Credit Scores
A number developed from a calculation
using the info from your credit report.

Most widely used is the Fico Score, also
knows as Beacon Score

Ranges from 300-850.

The higher the score, the better risk you
are determined to be and the better rate
you will be eligible for.
Five Ingredients of a
    Fico Score
   Credit Score Ingredients
            types of
              10% payment
  new credit
    10%              history

      ow ed         length of
       30%        credit history
Range of Credit Scores
 1% up to 499
 5% - 500-549
 8% - 550 – 599
 12% - 600-649
 16% - 650 – 699
 19% - 700-749
 28% - 750-799
 11% - 800+
Improving Your Score
     Pay bills on time

     Keep balances low

     Pay off debt

     Apply for & open new lines only when
     you need them.

     Check your credit report for accuracy
     and clear errors as soon as possible.
Putting Your Credit
Report to Work For You
Tool to assess and improve credit-worthiness
  Acts like a report card
  Helps you create a goal focused plan:
     Correct incorrect info
     Start paying bills on time
     Reducing debt
     Preparation for a meeting with a lender
  Your goal? Successful loan application at
  lowest cost to you possible.
More Information

   Federal Trade Commission

Consumer website for credit scores

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