Presentation on theme: "Your Credit History consumer.gov. You and your credit Have you ever had: – Credit card? – Loan? – Utilities in your name? – Cell phone with a monthly."— Presentation transcript:
You and your credit Have you ever had: – Credit card? – Loan? – Utilities in your name? – Cell phone with a monthly bill? This helps make up your credit history.
What is a credit history? How you use money: – Do you pay your bills when they are due? – How many credit cards do you have? – How many loans do you have? Your credit history helps make up your credit report.
What is a credit report? Summary of your credit history: – Name, address, Social Security number – Your credit cards and loans – How much money you owe – If you pay your bills on time or late
Who creates your credit report? Credit reporting companies put your information in a credit report: – TransUnion – Equifax – Experian
Why care about my credit? You might find mistakes or problems. – Your information from years ago – Somebody elses information By mistake On purpose You can try to fix mistakes or problems.
Why care about your credit? Businesses check your credit when you: – apply for a job – get car or home insurance – apply for a credit card or loan – get a cell phone
How do you get your credit report? Only one place to get your free report: – Annual Credit Report Call 1-877-322-8228 Go to www.AnnualCreditReport.comwww.AnnualCreditReport.com You get one free report every year from each credit reporting company
You got your report. Now what? Read it carefully. – Is it your name and address? – Do you recognize the accounts? – Is the bill-paying information right? – Does it list credit applications? Did you apply for credit at those places?
Good credit and bad credit Good: – You pay bills when theyre due – You dont owe too much money on your credit cards Bad: – You pay bills late – You owe a lot of money on your credit cards
Improving your credit You can improve your credit: – Pay your bills by the date they are due. – Lower the amount you owe – especially on credit cards. – Do not get any new credit cards. – Do not close older credit cards. It takes time!
What is a credit score? A number related to your credit history. – If your credit is good, your score will be high. – If your credit is bad, your score will be low. Scores go from 300 (low) – 850 (high) Used when you buy a home or car – To decide whether to give you credit – To decide how much youll pay for your credit
Should you know your credit score? Your credit history is most important. But your credit score might be used when you buy a car or home. Seeing your credit score costs money. Is it worth paying for?
One more time… Only one place to get your free report: – Annual Credit Report Call 1-877-322-8228 Go to www.AnnualCreditReport.comwww.AnnualCreditReport.com You get one free report every year from each credit reporting company