Credit report module 2

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  • Wrap-Up
  • Credit report module 2

    1. 1. Module 1.2 Analyze Your Credit Report and Score 1 Module 1.2Core PFRP for Transition
    2. 2. Module 1.2 Analyze Your Credit Report and Score 2 Analyzing Your Credit Report & Score13.3 2
    3. 3. Module 1.2 Analyze Your Credit Report and Score 3 Credit ReportsA credit report is a record ofan individual’s credit history.It contains: Credit Employment Residences Judgments Tax Liens Bankruptcies Inquiries 3
    4. 4. Module 1.2 Analyze Your Credit Report and Score 4Credit Report ComponentsPersonal IdentificationNameAddressDate of BirthSocial Security NumberEmployment InformationPayment History (Trade Lines) – Credit AccountsInquiries - List of everyone who accessed your credit report withinthe last two yearsPublic Record InformationPublic records Wage attachmentsLiens BankruptciesJudgment Foreclosures 413.4
    5. 5. Module 1.2 Analyze Your Credit Report and Score 5Credit Reporting Agencies 5
    6. 6. Module 1.2 Analyze Your Credit Report and Score 6 FACT Act Provisions• One free copy of your report from each CRA each year• Right to a copy of your credit score for a reasonable fee• One-call fraud alerts• Active-duty alerts• Trade-line blocking 6
    7. 7. Module 1.2 Analyze Your Credit Report and Score 7 7
    8. 8. Module 1.2 Analyze Your Credit Report and Score 8 What to Expect• You’ll need to provide and validate: • Name • Address • SSN • Date of birth • Current & previous address (if moved in last 2 years) • Other information listed on your file• An additional free report can be obtained if: • Denied credit, insurance, employment, rental housing • Adverse action was taken against you based on your credit file • Unemployed • Receiving public welfare assistance • Your state offers a free or reduced-price credit report • You’ve been a victim of identity theft 8
    9. 9. Module 1.2 Analyze Your Credit Report and Score 9What Is A Credit Score? 9
    10. 10. Module 1.2 Analyze Your Credit Report and Score 10What Is A Credit Score? Vantage 10
    11. 11. Module 1.2 Analyze Your Credit Report and Score 11 The Score MattersHigher scores = lower interest rates & more credit 11
    12. 12. Module 1.2 Analyze Your Credit Report and Score 12Where To Get A Score 1213.5
    13. 13. Module 1.2 Analyze Your Credit Report and Score 13 Credit Score Components Fair Isaac & Co (FICO) Score Vantage Score 1% 10% 9% 10% 35% 30% 9%15% 23% 30% 28% Payment History Available Credit Amounts Owed Length/Type of Credit Length of Credit History Total of Balances % of Credit Limit Used Types of Credit Payment History New Accounts 13 Recent Credit
    14. 14. Module 1.2 Analyze Your Credit Report and Score 14 Improving A Score Don’t exceed 10% of the limit on aEnsure credit report is accurate credit cardMake all payments promptly Pay down installment loans Don’t add new accounts to lowerStay within credit limits balances on older onesTake advantage of auto payment Establish new credit only if you haveplans/options little existing historySet up a bill-payment calendar Keep your older accounts in good standingMatch credit to appropriatepurchase Limit inquiries 14
    15. 15. Module 1.2 Analyze Your Credit Report and Score 15 Correcting A ReportAvoid credit Request Request Request Place a positive errors/erron outdated consumer repair missing information eous information information be removed statement on the be added be removed report agencies! 15
    16. 16. Module 1.2 Analyze Your Credit Report and Score 16Fixing A Report 16
    17. 17. Module 1.2 Analyze Your Credit Report and Score 17 Fair Credit Report Act• Consumers have the right to: – know the contents of their report – an accurate and complete file – have mistakes fixed – tell their side of the story – a fresh start – understand their report – know who has seen their report – confidentiality – know if their report has been used against them – sue the CRA 17
    18. 18. Module 1.2 Analyze Your Credit Report and Score 18Who Can See Your Credit Report? 18
    19. 19. Module 1.2 Analyze Your Credit Report and Score 19What’s Worth Knowing? Wrap-Up 19

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