Free Credit Report. Com

1. Free Credit Report. Com Free Credit Report first 6 commercials

2. Chapter 7: Objective: Understand the significance of the New Credit card laws New credit card laws (Credit Cardholder’s Bill of Rights Act) went into effect on February 22, 2010 These notes are updated to include all the new laws. AnnualCreditReport.com (truly Free)

4. What is Credit? Credit is “extended” to you when someone is willing to loan you money—called principal—in exchange for your promise to repay it, usually with interest. Interest is the amount you pay to use someone else’s money.

5. Credit Historyis a record of your behavior related to borrowing and repaying loans. Credit Reportis a detailed record of your personal credit and financial transactions. Credit Score is a rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower. Defaultis when you fail to repay the loan or credit card bill. The Language of Credit 4-C-3 of 3 4

6. You build a credit ________(score, history, report)which is then recorded and shows up on your credit _____, (score, history, report) which is then used to calculate your credit _____, (score, history, report) which is then used to decide if you can get a loan or a credit card, and how much interest you should pay. You build a credit history, which is then recorded and shows up on your credit report, which is then used to calculate your credit score, which is then used to decide if you can get a loan or a credit card, and how much interest you should pay. Putting the words together: 4-C-3

7. Types of Credit History 1. No Credit Someone who has never borrowed money or never had a credit card has no credit. Banks rarely lend money to someone with no credit because it is risky. If they do lend you money, you will pay a high interest rate.

8. Types of Credit History 2. Good Credit Someone who has borrowed and paid the loan back regularly has good credit. Someone who has a credit card and always pays their bill on time has good credit. A person with good credit will get a lower interest rate when they borrow money.

9. Types of Credit History 3. Bad Credit Someone who has borrowed money and not paid the loan back regularly has bad credit. Someone who has a credit card and does not pay their bill on time has bad credit. A person who has defaulted on a loan or credit card has bad credit. (doesn’t pay at all) A person with bad credit will be denied loans and credit cards, or be charged a high interest rate when they need a loan.

10. Who looks at credit Histories and Scores? Any lender you want to get a loan from Any lender you want to get a credit card from Any landlord you want to rent from Any employer you want to work for Any insurance companyyou want to purchase from. Any cell phone company you want to sign a contract with.

11. How do they get my credit history? Lenders buy your credit history and score from three national credit reporting agencies (also called credit bureaus): Equifax, Experian and TransUnion. For a fee, companies and others who have been approved can look at your credit history/score. You must be told that your credit will be checked.

12. How to build a Good credit history: Establish a steady work record. Keep a checking account and don’t overdraw. Keep a savings account and add to it regularly. Always pay all bills on time (including medical bills). Apply for a credit card at a store, which is often easier than a bank card. Pay your bill on time and don’t “max it out.” Apply at the bank where you keep your checking account for a credit card. Apply for a gas credit card.

13. How to build a credit history: Ask a parent to co-sign a credit card application or car loan and then pay it back, on time. Apply for a secured credit card. You deposit money in an account and charge against that amount. If you are renting a place after high school, make sure at least one of the utility bills is in your name and pay it on time. Report lost or stolen cards immediately. If someone uses your identity it can ruin your credit.

14. Closure How is a credit score number assigned? FICO Fair Isaac Corporation What’s your score?