Presentation is loading. Please wait.

Presentation is loading. Please wait.

Copyright © Texas Education Agency, All rights reserved.

Published byPetteri Lauri Lehtinen Modified over 4 years ago

Similar presentations

Presentation on theme: "Copyright © Texas Education Agency, All rights reserved."— Presentation transcript:

1 Copyright © Texas Education Agency, 2012. All rights reserved.
Credit History And Ratings Copyright © Texas Education Agency, All rights reserved.

2 Copyright Texas Education Agency, 2012. All rights reserved.
KEY TERMS Credit Equifax Credit History Experian Credit Rate FICO Credit Report Copyright Texas Education Agency, All rights reserved.

3 Copyright Texas Education Agency, 2012. All rights reserved.
Credit – an amount of money, or something of value, that is loaned or trust and with the expectation that it will be repaid at a later date. Credit History – record of your personal financial transactions. Used synonymously with credit report. Credit Rate – the numerical value calculated from a credit report that is used by creditors to help determine whether to give you credit Credit Report – contains all of the information related to your finances, such as payment history and amounts owed. Used synonymously with credit history. Copyright Texas Education Agency, All rights reserved.

4 Copyright Texas Education Agency, 2012. All rights reserved.
Equifax – One of the three major credit reporting agencies that maintains information about your credit history. Experian – One of the three major credit reporting agencies that maintains information about your credit history. FICO – the most popular credit score that uses a scale from about 300 to FICO stands for Fair Isaac Company. TransUnion – One of the three major credit reporting agencies that maintains information about your credit history. Copyright Texas Education Agency, All rights reserved.

5 What is in your credit score? What is in your credit score?
Payment History Types of Credit Used New Credit Amounts Owed Length of Credit History Payment History Types of Credit Used New Credit Amounts Owed Length of Credit History Group students into groups of 2-3. Give each student a copy of the “What is in your credit score” handout. Review Slide # 7 – and reiterate that a credit report contains all the information related to your finances, such as payment history and amounts owed. Used synonymously with credit history. Copyright Texas Education Agency, All rights reserved.

6 Length of Credit History
Payment History Account payment information (credit cards, loans, mortgage, etc.) Amounts Owed Number of accounts with a balance, and how much owed on each; loans still owed Length of Credit History Time since accounts opened, and since last activity Payment History

7 Copyright Texas Education Agency, 2012. All rights reserved.
New Credit Number of recently opened accounts Number of recent credit inquiries Time since account openings and credit inquiries Re-establishment of positive credit history following past payment problems Copyright Texas Education Agency, All rights reserved.

8 Copyright Texas Education Agency, 2012. All rights reserved.
Types of Credit Used Number of various types of accounts (credit cards, loans, mortgages, etc. Copyright Texas Education Agency, All rights reserved.

9 How is a credit score determined?
A credit score is determined using the credit report… The score is calculated using the FICO scoring system. Every person is allowed one free credit report from each of the three major agencies per year (Experian, TransUnion, and Equifax) Copyright Texas Education Agency, All rights reserved.

10 Q: State How to Prevent from Identity Theft
What is Identity Theft? One person, using information gathered from some source, takes on the identity of another person without permission and conducts a variety of activities using that identity. The intent is to use that identity for personal gain, generally with the intent to defraud others. Q: State How to Prevent from Identity Theft Copyright Texas Education Agency, All rights reserved.

11 What is NOT Identity Theft?
Someone using your credit card with your knowledge and consent to make a purchase Someone properly exercising a legally granted power of attorney on your behalf Someone making up a fake name and signing into a hotel—this may be a crime, but it’s not identity theft Copyright Texas Education Agency, All rights reserved.

12 Copyright Texas Education Agency, 2012. All rights reserved.
Four Key Points People are not helpless in protecting themselves from identity theft. Consumers do not bear the brunt of the loss. Internet use does not increase risk of identity fraud. Seniors are not the most frequent targets of identity thieves. Source: Javelin Strategy and Research 2006 Identity Fraud Survey Report Copyright Texas Education Agency, All rights reserved.

Download ppt "Copyright © Texas Education Agency, All rights reserved."

Similar presentations

Understanding Your Credit Purdue Employees Federal Credit Union.

Understanding Your Credit Purdue Employees Federal Credit Union.
C REDIT H ISTORY A ND R ATINGS 1 Copyright © Texas Education Agency, 2012. All rights reserved.

C REDIT H ISTORY A ND R ATINGS 1 Copyright © Texas Education Agency, All rights reserved.
 A record of your credit history that includes information about: ◦ Your identity ◦ Your existing credit ◦ Your public record ◦ Inquiries about you.

 A record of your credit history that includes information about: ◦ Your identity ◦ Your existing credit ◦ Your public record ◦ Inquiries about you.
Give Yourself Some Credit Understanding Your Credit Report Kaylee Prochniak Economics 101.

Give Yourself Some Credit Understanding Your Credit Report Kaylee Prochniak Economics 101.
CREDIT HISTORY & SCORES. CREDIT REPORTS  aka: credit history  3 Credit Bureaus receive and maintain information on consumers: Experian, TransUnion,

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.

The importance of understanding credit reports The choices you make today directly impact your future. Your credit score can influence how much interest.
To Your Credit 1. 2 Introduction Instructor and student introductions. Module overview.

To Your Credit 1. 2 Introduction Instructor and student introductions. Module overview.
The Importance of a Good Credit Score and How to Read a Credit Report

The Importance of a Good Credit Score and How to Read a Credit Report
You and Your Credit Score FICO. The Score The most widely used credit score is the FICO Score, the credit score created by Fair Isaac Corporation. Lenders.

You and Your Credit Score FICO. The Score The most widely used credit score is the FICO Score, the credit score created by Fair Isaac Corporation. Lenders.
CREDIT Why Worry About Credit? 1.You can easily get credit if you have never borrowed before and have not had any credit problems. Answer: False 2.You.

CREDIT Why Worry About Credit? 1.You can easily get credit if you have never borrowed before and have not had any credit problems. Answer: False 2.You.
Credit. Bell Ringer 1.Is a credit card good or bad? 2.What would be considered good credit? 3.On average how many credit cards does the average household.

Credit. Bell Ringer 1.Is a credit card good or bad? 2.What would be considered good credit? 3.On average how many credit cards does the average household.
Good Debt, Bad Debt: Using Credit Wisely Learner Objectives

Good Debt, Bad Debt: Using Credit Wisely Learner Objectives
To Your Credit 1. 2 Purpose To Your Credit will: Show you how to read a credit report. Help you build and repair your credit history.

To Your Credit 1. 2 Purpose To Your Credit will: Show you how to read a credit report. Help you build and repair your credit history.
Credit Reports Take Notes. Cost of CarInterest Rate# of PaymentsMonthly Payment $ 25,000.002%60($438.19) $ 25,000.004%60($460.41) $ 25,000.006%60($483.32)

Credit Reports Take Notes. Cost of CarInterest Rate# of PaymentsMonthly Payment $ 25, %60($438.19) $ 25, %60($460.41) $ 25, %60($483.32)
7.4.2.G1 Credit Reports Advanced Family Economics & Financial Education The Essentials to Take Charge of Your Finances.

7.4.2.G1 Credit Reports Advanced Family Economics & Financial Education The Essentials to Take Charge of Your Finances.
Credit Reports. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts.

Credit Reports. What is a Credit Report? Credit Report: A record of past borrowing and repayment of debts.
2 What Does it Mean? Determine how much money you can borrow, and how much interest you’ll pay. Each score is specific for each bureau Scores range from…

2 What Does it Mean? Determine how much money you can borrow, and how much interest you’ll pay. Each score is specific for each bureau Scores range from…
1. Open a savings account. Parents may be asked to cosign if minor 2. Open a checking account - Provides convenient method of paying bills 3. Open a.

1. Open a savings account. Parents may be asked to cosign if minor 2. Open a checking account - Provides convenient method of paying bills 3. Open a.
1.4.2.G1 Credit Reports and Credit Scores Take Charge of Your Finances.

1.4.2.G1 Credit Reports and Credit Scores Take Charge of Your Finances.
CREDIT RATING CREDIT RATING& CREDIT REPORTS. Credit Reports A credit report is a document which includes information on your level of indebtedness and.

CREDIT RATING CREDIT RATING& CREDIT REPORTS. Credit Reports A credit report is a document which includes information on your level of indebtedness and.

Similar presentations

Ads by Google