1Module 1.2 Analyze Your Credit Report and Score

Core PFRP for Transition

Module 1.2

2Module 1.2 Analyze Your Credit Report and Score

Analyzing Your Credit Report & Score

213.3

3Module 1.2 Analyze Your Credit Report and Score

Credit Reports

3

A credit report is a record of an individual’s credit history. It contains: Credit Employment Residences Judgments Tax Liens Bankruptcies Inquiries

4Module 1.2 Analyze Your Credit Report and Score

Credit Report Components

4

Personal IdentificationNameAddressDate of BirthSocial Security Number

Employment Information

Payment History (Trade Lines) – Credit Accounts

Inquiries - List of everyone who accessed your credit report within the last two years

Public Record InformationPublic records Wage attachmentsLiens BankruptciesJudgment Foreclosures

13.4

5Module 1.2 Analyze Your Credit Report and Score

Credit Reporting Agencies

5

6Module 1.2 Analyze Your Credit Report and Score

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

7Module 1.2 Analyze Your Credit Report and Score

7

www.annualcreditreport.com

8Module 1.2 Analyze Your Credit Report and Score

What to Expect

8

• 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

9Module 1.2 Analyze Your Credit Report and Score

What Is A Credit Score?

9

10Module 1.2 Analyze Your Credit Report and Score

What Is A Credit Score?

10

Vantage

11Module 1.2 Analyze Your Credit Report and Score

The Score Matters

Higher scores =

lower interest rates

& more credit

11

12Module 1.2 Analyze Your Credit Report and Score

Where To Get A Score

1213.5

13Module 1.2 Analyze Your Credit Report and Score

Credit Score Components

13

Vs

14Module 1.2 Analyze Your Credit Report and Score

Improving A Score

14

Ensure credit report is accurate

Make all payments promptly

Stay within credit limits

Take advantage of auto payment plans/options

Set up a bill-payment calendar

Match credit to appropriate purchase

Don’t exceed 10% of the limit on a credit card

Pay down installment loans

Don’t add new accounts to lower balances on older ones

Establish new credit only if you have little existing history

Keep your older accounts in good standing

Limit inquiries

15Module 1.2 Analyze Your Credit Report and Score

Correcting A Report

15

Request positive missing

information be added

Request errors/erron

eous information be removed

Request outdated

information be removed

Place a consumer statement

on the report

Avoid credit repair

agencies!

16Module 1.2 Analyze Your Credit Report and Score

Fixing A Report

16

17Module 1.2 Analyze Your Credit Report and Score

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

18Module 1.2 Analyze Your Credit Report and Score

Who Can See Your Credit Report?

18

CreditorsEmployers

Gov’t Agencies

Insurance Companies

Landlords

19Module 1.2 Analyze Your Credit Report and Score

What’s Worth Knowing? Wrap-Up

19