To Your Credit
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Introduction. Instructor and student introductions. Module overview. Student Introductions. Your name. Your expectations, questions, and concerns about credit. Purpose. To Your Credit will: Show you how to read a credit report. Help you build and repair your credit history. Objectives.

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Introduction 3018307

To Your Credit


Introduction

Introduction

  • Instructor and student introductions.

  • Module overview.

To Your Credit


Student introductions

Student Introductions

  • Your name.

  • Your expectations, questions, and concerns about credit.

To Your Credit


Purpose

Purpose

To Your Credit will:

  • Show you how to read a credit report.

  • Help you build and repair your credit history.

To Your Credit


Objectives

Objectives

By the end of this course, you will be able to:

  • Describe the purpose of a credit report and how it is used.

  • Order a copy of your credit report.

  • Read your credit report.

  • Identify ways to build and repair your credit history.

To Your Credit


Agenda and ground rules

Agenda and Ground Rules

  • 90 minutes long.

  • One 10-minute break.

  • Training methods.

  • Classroom participation.

To Your Credit


Credit report

Credit Report

A credit report is a record of how you have paid your debts. It tells lenders:

  • Who you are.

  • How much debt you have.

  • Whether you have made payments on time.

  • Whether there is negative information about you in public records.

To Your Credit


Credit reporting agencies

Credit Reporting Agencies

  • Equifax

  • Experian

  • TransUnion

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Information in a credit report

Information in a Credit Report

  • Identifying information

  • Credit history

  • Inquiries from creditors and other authorized parties

  • Public record information

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Public record information

Public Record Information

To Your Credit


Personal bankruptcy

Personal Bankruptcy

  • Chapter 13

  • Chapter 7

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How your credit report is used

How Your Credit Report Is Used

Information in your credit report may determine whether you will:

  • Get a loan or other form of credit.

  • Get a job.

  • Rent an apartment.

  • Get insurance.

To Your Credit


Reasons a loan application may be denied

Reasons a Loan Application May Be Denied

  • No credit history

  • Past credit problems

  • Negative information in public records

To Your Credit


Credit score

Credit Score

The credit score is:

  • A number that predicts how much of a credit risk you will be.

  • Calculated based on information in your credit report.

    Check your credit score before applying for new credit.

To Your Credit


Fico score

FICO Score

  • Scores range from about 300 to 900.

  • Takes into account:

    • Past payment history – 35 percent

    • Outstanding debt – 30 percent

    • How long you've had credit – 15 percent

    • New applications for credit – 10 percent

    • Types of credit – 10 percent

To Your Credit


Vantagescore

VantageScore

  • Was introduced in March 2006.

  • Three credit reporting agencies use the same scoring system.

  • Scores range from 501 – 990.

  • Grades A, B, C, D, F.

To Your Credit


Inquiries and your credit score

Inquiries and Your Credit Score

  • When you apply for credit, you authorize the lender to ask for a copy of your credit report — an inquiry.

  • Your credit score may drop if you apply for new credit.

  • Most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time.

To Your Credit


Other reasons to get a free credit report

Other Reasons to Get a Free Credit Report

You are also entitled to a free credit report if:

  • A company takes adverse action against you AND you ask for your report within 60 days of receiving notice of the action.

  • You are unemployed and plan to look for a job within 60 days.

  • You are receiving public assistance.

  • Your report is inaccurate because of fraud, including identity theft.

To Your Credit


Check for errors

Check for Errors

  • Review your credit report regularly to make sure there are no errors in it.

  • If you think there is an error, write a letter to the credit reporting agency.

To Your Credit


Identity theft

Identity Theft

Identity theft occurs when thieves steal your personal information and use it to:

  • Open a new credit card account.

  • Write checks in your name.

    The unpaid credit card bills or bad checks can damage your credit history.

To Your Credit


Debt management plan

Debt Management Plan

It is NOT credit counseling.

  • You deposit money each month with the credit counseling organization.

  • Your creditors may agree to lower your interest rates or waive certain fees.

  • You must make regular, timely payments.

To Your Credit


The truth about credit repair

The Truth About Credit Repair

  • No one can remove accurate information from your credit report.

  • It can take years to repair your credit.

  • No one can create a new identity for you.

To Your Credit


The truth about credit repair continued

The Truth About Credit Repair (Continued)

  • Legitimate companies provide a service BEFORE requesting payment.

  • You can order your credit report yourself.

To Your Credit


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