# Presentation: 809139

**Understanding Your Credit Report**

- Improving lives through financial education.

## What we will cover

- Upon completion of this program, you will have
- an understanding of the following:
- Recognize how a credit report is used
- Know  what should be in your credit file
- Obtain a free copy of credit reports
- Read a credit report
- Dispute incorrect or outdated information
- Understand credit scoring
- Protect against identity theft

## Overview of credit reporting

- The issuing of credit was localized within a community
- WWII shifted population to the cities
- Merchants shared account information
- Credit reporting industry got its start

## What is a credit report?

- A credit report is a record of how
- an individual has repaid credit
- obligations in the past.

## Where do credit reporting agencies obtain information?

- Consumers
- Creditors
- Public records
- Inquiries, external and internal
- Consumer statements
- Collection accounts
- Credit score

## What information is not in a credit report?

- Race
- Religion
- Medical history
- Political affiliation
- Checking or savings account information
- Any information that is not credit related

## How to obtain a credit report

- Be prepared to provide following information
- Full name
- Date of birth
- Social security number
- Current and previous addresses
- Daytime phone number
- Photocopy of letter of denial
- Photocopy of driver’s license
- 	or other Photo ID

## Free credit reports

- Internet: _[www.annualcreditreport.com](http://www.annualcreditreport.com/)_
- Telephone: 877-322-8228
- Mail: Annual Credit Report Request Service
- Been denied credit
- Unemployed and looking for work
- On welfare

## Purchasing a credit report	

- Experian
- Equifax
- TransUnion

## When can a credit report be viewed?

- There must be a permissible purpose:
- For employment purposes
- To underwrite insurance
- To issue a professional license
- In response to a Court Order or Federal Jury Subpoena
- Internal Revenue Service
- For review or collection purposes

## Credit Scoring

- Credit scoring is a number that creditors
- use to assess the likelihood that consumers
- will repay their debts and make payments
- on time.

## Top mistakes people make when dealing with the credit score

- Not staying current on all cards
- Maxing out the credit limits
- Cancelling old credit cards – sometimes necessary
- Opening new lines of credit
- Types of credit being used

## What are the benefits of scoring?

- Increase the speed of credit decisions
- Increase the availability of credit
- Assist in making unbiased decisions
- Standardize the credit granting process

## Sample Credit Report

- The format may be different but all
- contain:
- Personal information
- Alerts and validations
- Account information
- Collection agency account information
- Public record information
- Inquiries
- Creditor information list

## Reviewing credit report for errors

- Check your personal information such as name and social security number
- Verify your account status information
- Check your active account dates
- Look for out of date information

## Retention standards

- Monthly payment activity		2 years
- Inquiries				2 years
- Civil judgments			7 years from filing 					date or until paid
- Tax liens				7 years from filing 					date or until paid
- Trade lines and closed accounts		7 years from last 						activity
- Chapter 7 bankruptcy			10 years from filing 					date

## Retention standards – cont’d

- Chapter 13 bankruptcy			7 years from filing date 					or 10 years if not paid
- Collection Accounts			7 years from 						delinquency
- Foreclosure				7 years from 						delinquency
- Unpaid tax liens			Indefinitely
- Charge offs				7 years from 						delinquency
- Closed accounts			10 years from date 					closed

## Dispute process

- Complete Dispute Form or write letter documenting errors
- Mail form to bureau reporting error
- Or contact creditors directly
- Contact Federal Trade Commission if unable to resolve dispute
- Put 100 word personal statement on credit report

## Identity Fraud

- Identity theft occurs when someone uses your personal information without your knowledge to commit fraud or theft.

## Types of identity theft

- Financial
- Criminal
- Identity cloning

## How identity theft happens

- Stealing credit card applications from mailboxes or trash
- Raiding trash dumpsters for receipts
- Taking information from the mailbox
- Obtaining credit reports through fraud
- Using personal information found in your home
- Obtaining information from the internet
- Posing as a legitimate company and asking for personal information by mail or phone
- Accessing personnel and payroll
- 	information

## Consumers are scammed by:

- Telephone fraud
- Direct mail and mail order scams
- Telemarketing
- Internet scams
- Scholarship scams
- Travel scams
- Motor vehicle and repair scams
- Credit repair agencies

## Minimize your risk	

- Keep personal information safe
- Order copies of your credit report every year
- Shred all information or applications for credit cards
- Be cautious of e-mails or phone calls requesting personal information

## What to do if you are a victim

- Contact the fraud division of all three major credit reporting agencies by phone or through the internet.
- File a police report and obtain a copy of the report
- Contact your creditors and close the accounts
- Contact the FTC’s Theft Hotline
- Keep a record of all correspondence and telephone contacts made

## Summary

- Good credit is one of the most valuable financial assets you own
- Review your credit report yearly
- Dispute any errors
- Safeguard your personal papers to protect against identity theft
- If you are a victim, take immediate action

## Thank you for coming!	

- Questions?

- 866.515.2227
- www.MoneyManagement.org

- We are here to help.
- Consumer Credit Counseling Services of

- Improving lives through financial education.