Credit Reports

2MB Size 4 Downloads 52 Views

How can you dispute inaccuracies in your report. ▫ Credit Scores ... Auto Loan. ▫ Mortgage. ▫ Personal Loans. ▫ Furniture/Electronics. ▫ Utility Companies ... on mortgage. 575-595. 570-590. 620-640. Foreclosure. 575-595. 570-590. 620-640.
Credit Reports This program is made possible by a grant from the FINRA Investor Education Foundation through Smart [email protected] 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.

Your CREDIT SCORE summarizes the info in your report. Scores range between 300-850.

This is like a report This is like your GPA. card.

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.

Receive additional reports if:

You have been denied credit or insurance in the past 60 days.

You believe there are inaccuracies with an account.

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? Trade Lines or Credit Information Personal Information Inquiries

Credit Report Late payment Information Public Records

What is NOT on your report Savings and Checking Account Information

Current Medical Bill Payments

NOT on your credit report

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

Errors? 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.

Additional Help on Correcting Your Report?

File an online complaint:

Sample dispute letter:

www.ftc.gov

http://bit.ly/KR48P9

http://bit.ly/2dutOkz

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 Auto Loan (Used) Auto Loan (Used)

Credit Rating Best Middle

Interest Rate 2.99-3.60% 4-7.99%

Auto Loan (Used)

Poor

8-25%

FICO (300-850) Fair Isaac Corporation Credit 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 Score Consumer A

Beginning FICO Score

Consumer B

Consumer C

680

720

780

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-inlieu/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

What happens after:

Research was conducted on select consumer profiles, FICO Banking Analytics Blog

Estimated Time to Fully Recover Consumer A Starting FICO Score

Consumer B

Consumer C

680

720

780

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-inlieu/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

Recovery Time After These Events:

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

Types of Credit 10%

FICO Score

Credit Inquiries 10%

Payment History 35% Payment History Amounts Owed Length of Credit History

Credit Age 15%

New Credit Types of Credit

Amounts Owed 30%

Thank you! [email protected] [email protected] This program is made possible by a grant from the FINRA Investor Education Foundation through Smart [email protected] library®, a partnership with the American Library Association.

http://www.slcolibrary.org/smartinvesting

Comments