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Credit Reports
This program is made possible by a grant from the FINRA Investor Education Foundation through Smart Investing@your library®, a partnership with the American
Library Association.
http://www.slcolibrary.org/smartinvesting
What will we discuss?
Receiving a free copy of your credit report.
What information is in your credit report.
How can you dispute inaccuracies in your report.
Credit Scores
Credit Reports vs. Credit Scores
Your CREDIT REPORT provides details about your borrowing history.
This is like a report card.
Your CREDIT SCORE summarizes the info in your report. Scores range between 300-850.
This is like your GPA.
Fair Credit Reporting Act
Allows you to receive 3 free credit reports a year.
Regulates who gains access to
your report.
Any inaccurate information must
be corrected.
May order all three reports at
once
OR
Order once every quarter.
Additional Credit Reports May Be Ordered:
Unemployed and are applying for a job in the
next 60 days.
Receiving public assistance.
You have been denied credit or insurance in the
past 60 days.
You believe there are inaccuracies with an
account.
Receive additional reports
if:
Ordering Free Copies of Your Report
www.annualcreditreport.com
Phone: 1-877-322-8228
Mail: Annual Credit Report Services
PO BOX 105281
Atlanta GA 30348-5281
What Information is in Your Credit Report?
Credit Report
Inquiries
Personal Information
Late payment Information
Public Records
Trade Lines or Credit
Information
What is NOT on your report
NOT on your credit report
Current Medical Bill Payments
Savings and Checking Account
Information
Current Utility Bill Payments
Current Rent payments
Who Looks at Your Credit
Credit Card
Store Card (Target,
Kohl’s)
Auto Loan
Mortgage
Personal Loans
Furniture/Electronics
Utility Companies
Cell Phone Carrier
Insurance
Employer
Military (security
clearance)
Rental Agent
Bank (checking/savings
acct)
Identify Accounts that Build Credit
Credit Card
Utility Companies
Cell Phone Carrier
Store Card
Personal Loan
Bank (checking/saving accounts)
Furniture/Electronics Loan
Insurance
Employer
Mortgage
Military (security clearance)
Rental Agent
Auto Loan
Payday Loans
Title Loan
Disputing the Credit Report
How Do You Dispute Items
Contact the Credit Bureau in writing with proof supporting your
request.
Bureau has 30 Days to conduct an investigation & contact the creditors
If adjustments need to be made then the creditor will
notify the other credit bureaus.
If changes are made, you will receive a new free copy
of your credit report.
Errors?
Additional Help on Correcting Your Report?
File an online complaint:
http://bit.ly/KR48P9
Sample dispute letter:
http://bit.ly/2dutOkz
www.ftc.gov
idtheft.utah.gov/
consumerfinance.gov
CREDIT SCORES
Credit Scores
Score Range What does that mean? 300-629 Poor Credit Hard to get a loan, may
have to pay high % rates
630-689 Average Credit Easier to qualify for a loan; May have a higher % rate
690-719 Good Credit Can qualify for credit, but not the best rates
720-850 Excellent Credit Qualify for lower % rates and rewards cards
Interest Rate Comparison
Loan Type Credit Rating Interest Rate
Auto Loan (Used) Best 2.99-3.60%
Auto Loan (Used) Middle 4-7.99%
Auto Loan (Used) Poor 8-25%
FICO (300-850) Fair Isaac CorporationCredit Scoring models convert the information in your credit report into a number that grades and predicts your ability to repay debt obligations.
FICO is the most common model, VantageScore is a less known/used model
Impact on Your FICO ScoreConsumer A Consumer B Consumer C
Beginning FICO Score 680 720 780
What happens after:
30 days late on mortgage 600-620 630-650 670-690
90 days late on mortgage 600-620 610-630 650-670
Short sale/deed-in-lieu/settlement (no deficiency balance)
610-630 605-625 655-675
Short sale (with deficiency balance) Still owe money on mortgage
575-595 570-590 620-640
Foreclosure 575-595 570-590 620-640
Bankruptcy 530-550 525-545 540-560
Research was conducted on select consumer profiles, FICO Banking Analytics Blog
Estimated Time to Fully RecoverConsumer A Consumer B Consumer C
Starting FICO Score 680 720 780
Recovery Time After These Events:
30 days late on mortgage 9 months 2.5 years 3 years
90 days late on mortgage 9 months 3 years 7 years
Short sale/deed-in-lieu/settlement (no deficiency balance)
3 years 7 years 7 years
Short sale (with deficiency balance) Still owe money on mortgage
3 years 7 years 7 years
Foreclosure 3 years 7 years 7 years
Bankruptcy 5 years 7-10 years 7-10 years
How long will the information stay on my Credit Report?
Type of Account How Long Will It Stay?
Open accounts in good standing (paid on time) Forever
Closed accounts in good standing 10 years
Late/missed payments 7 years
Collections 7 years
Civil Judgments 7 years
Chapter 7 Bankruptcy 10 years
Chapter 13 Bankruptcy 7 years
Unpaid tax liens 10 years
Paid tax liens 7 years
Credit inquiries 2 years
Payment History35%
Amounts Owed30%
Credit Age 15%
Credit Inquiries 10%
Types of Credit10%
FICO Score
Payment History
Amounts Owed
Length of Credit History
New Credit
Types of Credit
Thank [email protected]@slcolibrary.org
This program is made possible by a grant from the FINRA Investor Education Foundation through Smart investing@your library®, a partnership with the American Library Association.
http://www.slcolibrary.org/smartinvesting
