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
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3Module 1.2 Analyze Your Credit Report and Score
Credit Reports
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A credit report is a record of an individual’s credit history. It contains: Credit Employment Residences Judgments Tax Liens Bankruptcies Inquiries
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Credit Report Components
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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
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Credit Reporting Agencies
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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
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www.annualcreditreport.com
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What to Expect
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• 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
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What Is A Credit Score?
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What Is A Credit Score?
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Vantage
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The Score Matters
Higher scores =
lower interest rates
& more credit
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Where To Get A Score
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Credit Score Components
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Vs
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Improving A Score
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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
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Correcting A Report
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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!
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Fixing A Report
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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
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Who Can See Your Credit Report?
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CreditorsEmployers
Gov’t Agencies
Insurance Companies
Landlords
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What’s Worth Knowing? Wrap-Up
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