Transcription
Everything You Ever Wantedto Know About Credit,, butWere Afraid to Ask
What is Credit?Confidence in a purchaser'spurchaser s ability and intention topay, displayed by entrusting the buyer with goods orservices without immediate payment.www.annualcreditreport.com
Types of Credit Installment Credit (fixed amount) Student LoansMortgage LoansPersonal LoansCar LoansRRevolvingl i CCreditdit (li(limitedit d amount)t) Credit cardsUtilitiesSome equity loansThe average consumer has 13 credit obligations on record.www.annualcreditreport.com
Where Can I Find My Credit Report? www.annualcreditreport.compisthe website for your FREE credit report www.freecreditreport.com isNOTFREE!!www.annualcreditreport.com
Credit Reporting AgenciesEquifaxP.O. Box 740256Atl t GA P.O. Box 2002Allen, TX 75013888-397-3742www.experian.comiCHECK THESEVERYCAREFULLY!!TransUnionP.O. Box 2000Ch t PA ualcreditreport.com
Checking Your Credit Report Review all information carefullyEvery detail is important – from the SSN to the individualaccount numbersR iReviewyour reportst every yearYou can request all three at once or at different points inthee yeayearCheck your student loans to make sure they are notcounted twiceOnly 36% of Americans have checked their credit report in the last 12 months.www.annualcreditreport.com
Credit Report - Examplewww.annualcreditreport.com
Errors on Your Reportwww.annualcreditreport.com
To Dispute Items Follow instructions from credit bureau Send written dispute letters Creditors have 30 daysy to provideppproof If no reply within 30 days (plus mail time), ask to havenegative credit removed If creditor proves cause for negative credit (even outsideof 30 days), it may be reinstated Keep copies of everything!www.annualcreditreport.com
Requesting a Fraud Alert Contact law enforcement and file a criminal reportContact any of the agencies – they will alert theother twoFraud Alert – 90 daysExtended Fraud Alert – 7 years Requires criminal complaintCan make it harder to receive credit
Identity TheftCredit and debit card fraud is the No. 1 fear ofAmericans in the midst of the global financial crisis.Concern about fraud supersedes that of terrorism,computert andd healthh lth virusesiandd personall safety.f tSource: Unisys Security Index: United States,States March 2009www.annualcreditreport.com
Preventing Identity Theft Buyy a cross thread shredder!Do not use your SSN on your licenseor as your passwordDo not keep PINs or passwords in yourwalletNever give out personal informationfover the phone oronlineCheck your credit card bills carefullyCheck your credit report annuallywww.annualcreditreport.com
Identity Theft Protection What does an Identity Theft Prevention Serviceprovide?id ? Credit scoreAutomatic fraud alertsAutomatic fraud alert renewalsService guarantees or identity theft insurance for up to a certain amountFree annual credit reports and monitoring of those reportsLegal help in case you encounter fraud or have your identity stolenCoverage of lost wagesRemoval from mailingg listsCredit card monitoringHowever, not every service will provide every benefit! Do your research beforesigningi i up!!!!www.annualcreditreport.com
Identity Theft ProtectionPros ConsCan provide legalsupport if neededYou don’tdon t need to checkyour own reportsPeace of mind ExpensiveFalse sense of securityM bMaybe hhardd tto enddcontractMay not be neededwww.annualcreditreport.com
Credit Scores A credit score is a number representing aperson’s creditworthiness; the likelihood thatperson will pay his or her debt. Obtainingg yyour credit score is NOT free unlessyou have been turned down for a loan orinsurance because of the score.**Wall Street Reform Act of 2010www.annualcreditreport.com
FICO Score and VantageScore FICO Score is the traditional credit rating Fair Isaac & Company Scores range from 300-850Used by most lendersVantageScore is a new credit rating product offeredby the three credit reporting agencies Created in 2006 by ExperianScores range from 501-990Includes letter gradewww.annualcreditreport.com
FICO Score and VantageScore Predict your risk to a potential lender Determined byy information providedpto the differentcredit agencies Higher the score, lower the riskEquifaxTransUnionExperianC l l ti off score iis proprietaryCalculationi tiinformationftiwww.annualcreditreport.com
FICO Score What’s in your score: What’s NOT in your score: Race/Ethnicity/ReligionAge/Sex/Marital StatusSalary, Occupation or Employment HistoryChild Support or Alimony ResponsibilitiesLocationThe average FICO score is 692.www.annualcreditreport.com
FICO ScoresNational Distribution of FICO Scores130%% of Populaation25%27%20%18%15%15%10%5%13%12%2%8%5%0%up to 499 500-550550-599600-649650-699FICO Score com700-749750-799800
VantageScore How it’s measured: Stronger emphasis on the last two years of credit better for younger people and immigrant populationsEach agency uses a single formula, so scoresshould be consistent www.annualcreditreport.com
VantageScore AveragesVantageScore st State:698TexasMassachusetts761501 545 590 634 679 723 768 812 857 901 946 om/scoreindex.htmlwww.annualcreditreport.com
Credit ScoresWhat can you do to increase your credit score? Pay your bills on timeR dReduceyour overallll ddebtbtCancel unnecessary credit cards HHowever,alwayslkkeep your oldestld t lineli off creditdit openAsk lenders to reduce your high credit limits33% of all consumers have had a payment late by 90 days or morewww.annualcreditreport.com.
Questions and AnswersThanks for attending!Everything You Ever Wanted to KnowAbout Credit, but Were Afraid to AskDon’t forget to complete your evaluation!www.annualcreditreport.com
Checking Your Credit Report Review all information carefully Every detail is important - from the SSN to the individual account numbers Ri tReview your reports every year You can request all three at once or at different points in theeyea year Check your student loans to make sure they are not counted twice Only 36% of Americans have checked their credit report in the last 12 months.
