Credit Reports and Credit Scores Mike Keith 355-5616, Tues, Wed, Thurs, 9am-5pm The credit fairy does not exist ! Credit Bureaus Equifax Experian Transunion Credit bureau A consumer reporting agency that regularly engages in the practice of assembling and maintaining consumer credit information or other information on consumers for the purpose of furnishing reports to third parties. What is a credit report? Record of an individuals credit history. A credit report contains personal information gathered from approved sources on an ongoing basis. Approved lenders, retailers, utility companies can use the data to make credit decisions, approve benefits, or service decisions. A credit report does not contain: Race. Religion. Health or medical information. Driving record. Criminal record. Bankruptcies over 10 years old. Derogatory items more than 7 years old. Sensitive data-Alcohol or drug treatment, mental health treatment, medical data details. Your credit report may contain: Name and any variations, aka. Date of birth, phone # Current and previous addresses. Employment data. Financial accounts and payment history. Public records: Liens, Bankruptcies, Civil Judgments. Collection accounts. Inquiries. A credit score does not consider: Race, color, religion, national origin, sex, marital status. Age, salary, occupation, title, employment history. Where you live. Credit score A number from 300 to 850 that indicates how credit worthy you are. Credit reports are used for: Landlords Insurers Utility providers and cell phones Employers (security clearance) Credit Debt Secured-Installment credit Unsecured-Revolving credit Installment vs. Revolving Debt Installment Beginning balance $2500. Interest rate 10% Payment $63.40 Years repay 4 Interest cost $544. Revolving $2500. 18.5% $50.00 30 $6,500. Auto loan:$25,000. for 72 months Int. rate 5% Pmt $402. Total $28990. Difference of $9075. 15% $527. $38065. Home loan: $200,000. for 30 years Int. rate 5% Mth pmt $1066. Total paid $386,643. Difference $45,200. 15 vice 30 years. $1580. pmt. saves $101,905. 6% $1199. $431,843. Debt to credit limit ratio Limit $3000. $3000. Balance $2000. $2000. $3000. 0 $9000. 44% 66% How can I improve my score? Pay on time. Keep balances low. Eliminate unnecessary revolving credit. Minimize balance transfers. Apply for new credit sparingly. Review credit reports regularly and correct errors. Learn what your current FICO score is. How can I obtain a copy of my credit report ? Order through the three credit bureaus. www.annual credit report .com Toll free number: 1-877-32-8228 Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281 Free copy provided if: Denied credit, housing, employment, insurance Unemployment Fraud Public assistance Credit Bureau Contact Information Equifax P.O. Box 740241 Atlanta, GA 30374 1-800-685-1111 Trans Union P.O. Box 2000 Chester, PA 19002 1-800-888-4213 Experian P.O. Box 2002 Allen, TX 75013 1-866-200-6020 Questions?