MONEY MANAGEMENT II Credit Reports. What We’re Covering Today What a credit report is and why it’s important Credit bureau basics What is actually on.

Slides:

Advertisements

Similar presentations

Chapter 27 Your Credit and the Law pp Learning Objectives 1.Explain 1.Explain how government protects credit rights. 2. Name 2. Name federal.

Advertisements

MoneyWi$e: Good Credit Good Credit Money Wi$e –A joint financial education project of Consumer Action and Capital One.

Carl Johnson Financial Literacy Jenks High School.

Personal Finance Credit Review JEOPARDY 100 Definitions Types of Types of Credit 4 C’s of 4 C’s of Credit Your Rights Credit Report Potpourri

Introduction to Business & marketing

Credit Records and Laws

A person or company to whom a debt is owed.

WHAT IS A CREDIT SCORE? A credit score is a number that helps a lender predict how likely an individual is to repay a loan, or make credit payments on.

Credit Cards presentation slides. Applying For A Credit Card costs: Annual Percentage Rate (APR) Grace period Annual fees Transaction fees Balancing computation.

Copyright, 1996 © Dale Carnegie & Associates, Inc. WOMEN AND CREDIT LAWS MINI-LESSON INDIANA DEPARTMENT OF FINANCIAL INSTITUTIONS CONSUMER EDUCATION.

Teens lesson eight credit cards.

Section 6.3 Protecting Your Credit. Billing Errors and Disputes Notify your creditor in writing Notify your creditor in writing Pay the portion of the.

1 Those Darned Cards!. 2 Chapter 6 – Credit Cards Extremely important but deceptively expensive Revolving – borrow, repay then reborrow Minimum repayment.

CREDIT HISTORY & SCORES. CREDIT REPORTS  aka: credit history  3 Credit Bureaus receive and maintain information on consumers: Experian, TransUnion,

The importance of understanding credit reports The choices you make today directly impact your future. Your credit score can influence how much interest.

Understanding Credit Reports & Credit Scores Presented by Rich Call Consumer Credit Counseling Service.

Federal Credit Laws. What are the key laws about credit and borrowers that protect consumers? Several federal laws protect consumers when they apply for.

A Good CREDIT Welcome to MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Build it and keep it © 2011.

Staying on Top: Credit Reports and Scores. What’s in Your Credit Report? Personal identification information Name, address, date of birth, SSN, employment.

CREDIT How do you build credit? Mr. Jones and Mrs. Smith make the same amount of money, but on loans, Mr. Jones pays more. Why? What may determine if you.

The Importance of a Good Credit Score and How to Read a Credit Report

Applying for Credit Unit 3.  Most lenders build their lending polices around the “five C’s of credit”  Character – Will you repay the loan?  Capacity.

Shanna McGinnis. Key Terms aka WHAT YOU NEED TO KNOW! Credit History: The complete record of your borrowing and repayment performance. Credit Bureau:

What you “look” like at the credit bureau What creditors see when they pull up your records.

CREDIT UNIT TEST REVIEW. CREDIT TEST REVIEW _________________ is an arrangement to receive cash, goods, or services now and pay for them in the future.

 the ability to borrow money in return for the promise of REPAYMENT  Before using credit you should ask your self:  Is it a want or a need?  Do you.

Credit Reports Take Notes. Cost of CarInterest Rate# of PaymentsMonthly Payment $ 25, %60($438.19) $ 25, %60($460.41) $ 25, %60($483.32)

Teens lesson eight credit cards.

CREDIT CARDS. Advantage/Disadvantages Your Credit Worthiness The 5 ‘Cs’ Capacity Character Credit History Capital Collateral The 5 ‘Cs’ Capacity Character.

Do Now10/30 & 10/31 Chapter 17 SLID E 1 Respond to the following in your notebook: As a teenager, you would like to get started in establishing a good.

Chapter 17 Two Truths and a Lie.

Credit Report and Credit Score. Today’s Topics Credit reports Credit score components How to establish positive credit history Credit card features Credit.

Credit Reports. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts.

© Family Economics & Financial Education – Revised October 2004 – Credit Unit –Understanding Credit Reports Funded by a grant from Take Charge America,

Personal Finance. The three Cs of Credit 1. Capacity  Do you have a steady job?  What is your salary?  How reliable is your income?  Do you have other.

Back to Table of Contents pp Chapter 27 Your Credit and the Law.

Credit Cards Rules and Legislation. How does a credit card work?  Purchase Item: Approval: Sign  Merchant sends receipt to bank gets credit for transaction.

Chapter 15 Credit. Factors to Consider Before Using Credit Chapter 15 Consumer Credit What should you know before using credit? Do you have the cash you.

2.6.1.G1 Credit Reports and Scores Take Charge G1 © Take Charge Today – August 2013– Credit Reports and Scores– Slide 2 Funded by a grant from.

Credit and Credit Cards Good Credit Bad Credit No Credit Good Credit Bad Credit No Credit.

Credit Cards. When thinking of getting a Credit Card follow the Three C’s: Character: Will you repay the debt? How you used credit before? Do you pay.

Chapter 27 Your Credit and the Law pp Learning Targets 1.Explain 1.Explain how government protects credit rights. 2. Name 2. Name federal laws.

2.6.1.G1 Credit Reports and Scores Advanced Level.

10 Points Question- What is the definition of Character?

Credit – You’re in Charge.  Credit – the ability to borrow money in return for a promise of future payment. ◦ Credit has the opposite trade-off as saving.

CHAPTER 32 CREDIT RECORDS AND REGULATIONS. CREDITWORTHINESS Established a credit record You are a good credit risk Lenders will want to know: 1. How much.

CREDIT HISTORY & SCORES. CREDIT REPORTS  aka: credit history  3 Credit Bureaus receive and maintain information on consumers: Experian, TransUnion,

CHAPTER 18 CONSUMER CREDIT.

2 Table of Contents  Personal Identification Information  Trade Lines or Payment Records  Public Record and Collection Items  Inquiries  Consumer.

Americans Use Credit What Can be Learned? –h–how credit affects our lives… cc redit - ll oan = credit cost of credit –a–amount owed >>> debt = ??

Credit  When goods, services, and/or money is received in exchange for a promise to pay back a definite sum of money at a futre date.  Lender: the person.

Teens lesson eight credit cards presentation slides 04/09.

Chapter 17 Credit Records and Laws. Credit Records and Laws Establishing Good Credit Credit Records Creditworthiness Getting Started With Credit Credit.

Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.

1.  Three credit reporting bureaus:  Equifax  Trans Union  Experian  Information is not shared among bureaus unless required by law.  Not all creditors.

© Take Charge America Institute – September 2008 – Workshop Guide – Understanding Credit Reports Advanced Funded by a grant from Take Charge America, Inc.

CREDIT: BUY NOW, PAY LATER. It’s important for all of us to establish good credit. 28% of students with a credit card don’t repay the entire balance off.

The Costs and Methods of Obtaining Credit Morgan Napier and Kaitlin Nelke.

FICO Your Credit Score FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.

Credit in our Economy Chapter 32: Credit Records and Regulations.

Understanding Credit Reports

Understanding Credit Reports

Understanding Credit Reports

Understanding Credit Reports

Build Your CREDIT = Build Your ASSET

Understanding Credit Reports

Presentation transcript:

MONEY MANAGEMENT II Credit Reports

What We’re Covering Today What a credit report is and why it’s important Credit bureau basics What is actually on a credit report Citizens rights & penalties

What is a Credit Report, Why is it Important Credit Report: The record of your complete credit history Credit records are collected and maintained by credit bureaus. Lenders rely heavily on credit reports when considering extending credit.

Credit Bureaus: What They Are Credit Bureau: An agency that collects information on how promptly people and businesses pay their bills. The three major credit bureaus are:  Experian  Trans Union  Equifax

Credit Bureaus Continued Each of the three major bureaus maintain more than 200 million credit reports on individuals. The reports are based on information they receive from lenders. There are several thousand smaller credit bureaus in operation. Credit bureaus make money by selling the information they collect (Reports) to creditors who are considering loan applications/extending credit.

Credit Bureaus: What They Collect, From Where Credit Bureaus get their information from all sorts of places, such as: The information they collect includes:  Type of credit they have extended  The amounts and terms of the loans  Customer’s paying habits. BanksFinance Companies Stores Court RecordsCredit Card Companies Anyone who is technically a lender

Credit Report: What’s It Made Of? A typical credit report will contain the following:  Name  Address  Previous Address  Social Security Number  Birth date  Employment Info (Where, Position & $$)  Previous Employment Info  Homeowner or Renter Status  Checks returned for insufficient funds  Your spouse’s information

Credit Reports: What’s It Made Of? Credit reports also contain very detailed information on every loan or use of credit. These reports are updated regularly to show:  Payments you have made (Both amounts and number of)  Late Payments  Missed Payments  How much you still owe Lawsuits & Judgments against you may appear as well.

Your Rights – The Fair Credit Reporting Act Fair and accurate credit reporting is vital to both creditors and consumers. To ensure citizens rights were being protected, Congress passed the Fair Credit Reporting Act The act regulates the use of credit reports by:  Deleting out of date information  Giving consumers access to their reports  Giving consumers the right to correct discrepancies  Limiting who can obtain your credit report

So Who’s Looking At My Information Credit reports are only issued to properly identified people for approved purposes. Credit reports can also be obtained through/for  Court order  Your own written request  Connection with a credit transaction  The underwriting of insurance  Other legitimate business needs No one else is supposed to get this information!

How Long Is That On There? The majority of information in your report may only be reported for seven years. If you have declared personal bankruptcy this time frame becomes 10 years. Credit Bureaus can disclose information past these time frames if:  You are being reviewed for a credit application of $75,000 or more  You apply to purchase life insurance of $150,000 or more

That Shouldn’t Be On There! Even with careful procedures and the best of intentions, mistakes do happen and they may appear on your credit report. If you think that an error has occurred and that incorrect data is being reported, contact the bureau and dispute the information. If you challenge the accuracy of an item on the report, the bureau must remove the item unless the lender can verify the information is accurate.

Crime & Punishment If a credit bureau does not follow the laws established by the Fair Credit Reporting Act you have a legal right to sue. If found guilty the bureau may have to pay:  Court Costs & Attorney Fees  Actual & Punitive Damages Action must be brought within two years of the occurrence or discovery of material Someone who obtains or provides an unauthorized credit report faces up to a $5,000 fine, one year in jail, or both.

Wrap-Up & Review Credit reports are the complete history of your credit use! There is a ton of sensitive information on these reports, therefore access to them is limited. You have certain rights as a consumer when it comes to your credit report. Remember them and ensure that your report is as accurate as possible!