The document provides information on credit score rehabilitation and improving credit scores. It defines key terms like income, expenses, credit, credit scores, fraud, and tradelines. It explains how to obtain credit reports from the three major credit agencies and review the components of a credit report such as applicant information, credit scores, collection records, and public records. It offers tips for improving credit scores such as paying bills on time, paying down debt, addressing discrepancies, and monitoring credit reports and scores regularly.

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Credit Score Rehabilitation
Presented by: Jennoa R. Graham, Ph.D.
Friday, May 10, 2013

2.  Income – Money that is received in exchange
for a product, service or contract agreement
 Expense – Money that is paid out in exchange
for a product, service or contract agreement
 Credit – The act of borrowing money from a
lender for the purpose of making a purchase
without actual money exchanging hands.
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Income – Expenses = Profit (Loss) or Surplus (Deficit)

3.  Credit (FICO) Score – A numerical value that
lenders use to determine risk (300-850). The
higher the number, the lower the risk.
 Fraud – Intentional misrepresentation or
concealment of information in order to deceive
or mislead (trick).
 Tradelines – Loan specific details.
 Derogatory – Belittle…extremely Negative
 Bankruptcy, Garnishment, Warrants
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4.  Define credit report and its purpose
 How to obtain copies of credit report(s)
 Review components of credit report
 How to address discrepancies found on credit
report
 Tips to improve, monitor, and maintain credit
score
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5.  A credit report is a detailed history of all credit
related inquiries, payment and personal
information used to determine credit score.
 Applicant Information
 Fraud Indicators
 Profile Summary
 Credit Scores
 Trendlines
 Collection Records
 Recent Inquiries
 Public Records
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6.  Credit (FICO) Score = Numerical Risk Value
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Range: 300 - 850

7.  FICO is now the standard; there are many
others that will be phased out:
 FICO NextGen Score range: 150–950
 VantageScore range: 501 – 990
 Equifax credit score range: 280 – 850
 Experian PLUS Score range: 330 – 830
 Experian’s National Equivalency Score range: 360 – 840
 TransRisk New Account Score range: 300 – 850
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8.  There are three major reporting agencies
 Equifax (www.equifax.com)
 Trans Union (www.transunion.com)
 Experian (www.experian.com)
 Request credit report and/or scores from
agency website…not all reports/scores are free
 Free copies every 12 months from
 www.annualcreditreport.com
 Obtain copies from all three agencies
 May or may not include credit score
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9.  Applicant Information
 Full name and any aliases
 All known addresses
 Social Security Number
 Date of birth
 Employers
 Fraud Indicators
 Any occurrence were applicant information
does not match lending company database
checklist outside of tolerance
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10.  Profile Summary
 Snapshot of total debt for quick assessment
 Balances of all debt
 Monthly payments of all debt
 # of Inquiries for copy of report(last 6 months)
 Past Due, Revolving, Derogatory
 Credit Score
 May or may not be included
 Check credit agency website for details
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11.  Tradelines
 Creditors
 Types of Creditors
 Date Accounts Opened
 Credit Amounts
 Co-Signers
 Payment Patterns (last two years)
 Collection Records
 Details of any debt that has been passed to a
collection agency (this is not a garnishment)
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12.  Recent Inquiries
 Names of companies/individuals requesting a
copy of your credit report
 Two year period
 Your request does increase this count
 Inquiries can be blocked by freezing your
credit
 Public Records (City & State Courts)
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Bankruptcy Tax Liens Garnishments
Monies Awarded Non-Money Awarded Other Derogatory

13.  This prevents anyone from accessing the
report without a Personal Identification
Number (PIN)
 Costs vary among state and credit agencies
 Check fees for Security Freeze and Requirements
on individual agency websites
 Freezing Placement
 Date Range Lift – for a specific purpose
 Permanent Removal
 Replacement PIN
 As of April 29, 2013 fees are < $10 each
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14.  Address Right Away
 Make a copy of page where discrepancy is
located
 Write a dated letter to agency and lender (if
applicable)
 Clearly explain discrepancy and why it is incorrect
 Clearly explain the correction or the correct result
 Include your full name, current address, and
current phone number
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15.  Retain copy of letter and log date mailed
 Refer to agency website for additional
information
 You should receive acknowledgement of the
letter that includes a confirmation (or
dispute) of correction
 If disputed write another letter. Keep fighting
until other options are provided
 Request another free copy in 12 months to
verify correction was made
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16.  Pay all bills on-time
 Pay rent/mortgage first
 Limit yourself to one credit card and keep the
balance low
 If you need more than one, open only as needed
 Payoff debt as quickly as possible
 Avoid debt consolidation if you can
 Address credit report discrepancies right away
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17.  Obtain a free credit report/score every 12 months
 Does not effect credit score
 Does increase the # of inquiries
 DO NOT apply for a credit card just to check your
score
 Just because you are approved does not mean you are
doing better or your score has improved
 Monitoring programs are optional
 Recommended if you are an increased risk for fraud (i.e.
common name) and/or have a need to check scores
more often than 12 months (monthly costs up to $50)
 Use Security Freeze which is less costly (< $10 per
occurrence)
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18.  Keep improving.. Don’t stop
 Set a monthly budget and long term
financial goals…STICK to THEM
 Share your goals with someone you trust
and who will keep you motivated
 Get help right away if there is a problem;
Don’t let yourself get frustrated or
overwhelmed
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19.  CredAbility (www.credability.org)
 Nonprofit Credit Counseling & Education
 Free online classes
 TheTruthAboutCreditCards
(www.thetruthaboutcreditcards.com)
 Insightful information about credit cards
 American Financial Solutions
(www.myfinancialgoals.org/education/classes.htm)
 Money Management
 Free online classes
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21.  Credit Consumer Counseling Service of Greater
Atlanta (2013). Retrieved April 23, 2013, from
http://www.credability.org
 Nelly, Good (2013). Understanding your Credit Report
and its components. Retrieved April 29, 2013, from
http://www.debt consolidationcare.com
 Word Press (2013). Retrieved April 29, 2013, from
http://www.thetruthaboutcreditcards.com
 The American Heritage® Dictionary of the English
Language (2009), Fourth Edition, Houghton Mifflin
Company. Retrieved April 29, 2013, from
http://www.thefreedictionary.com
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