© South-Western Educational Publishing Chapter 17 Credit Records and Laws Establishing Good Credit...

© South-Western Educational Publishing

Chapter 17Credit Records and Laws

Establishing Good CreditCredit Ratings and Legal Protection


GOALSGOALS

Lesson 17.1Establishing Good Credit

Discuss the importance of credit records and summarize how and why records are compiled.Describe the five Cs of credit.Explain how to get started using credit.


Credit Records

Your credit fileHow information is gathered and usedTypes of information stored


Credit bureau

Credit history Credit reportSubscribers


3 Credit Bureaus

TransUnion: www.transunion.comEquifax: www.equifax.comExperian: www.experian.com

http://www.experian.com/


Creditworthiness

CharacterCapacityCapitalConditionsCollateral

Five Cs of Credit


Getting Started with Credit

Begin with a savings account.Open a checking account.Open a store credit account.Get a small loan.Apply for a credit card.


GOALSGOALS

Lesson 17.2Credit Ratings and Legal Protection

Describe credit ratings and a point system for determining creditworthiness.Outline the contents of a credit report.Discuss the protections provided by the major credit laws.


Credit Ratings

Excellent credit rating=???Good credit rating=???Fair credit rating=???Poor credit rating=???


Credit Reports

Summary of informationPublic record informationCredit informationAccount detailRequests for credit historyPersonal information


Credit Laws

Consumer Credit Protection Act – consumers must be fully informed of a credit purchase before signing.Fair Credit Reporting Act – you have a right to know who looked at your credit file, and you also have the right to fix any inaccurate info. on your credit report.


Credit Laws

Fair Credit Billing Act – creditors must fix errors on your bill quickly.Equal Credit Opportunity Act – can NOT discriminate when deciding to give credit to someone.Fair Debt Collection Practices Act – bill collectors can NOT be abusive or threatening

© South-Western Educational Publishing Chapter 17 Credit Records and Laws Establishing Good Credit...

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