The Dog Ate My Bill

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The Dog Ate My Bill!
Understanding Credit Reports

• Provided by
• The Credit Education Bureau
• 585-256-6080

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Credit is an arrangement for deferred payment of
a loan or purchase.
What is credit?
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Why Should You Pay Attention?

• So you dont have to call me after you graduate
  from college.
• So you dont have to live with your parents
  after you graduate from college.
• So you dont have to walk to work after you
  graduate from college.
• So you can get a decent job and dont have to
  work at McDonalds after you graduate from
  college.

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Main Points

• Why credit reports are important.
• How credit reports work.
• Inaccuracies.
• Credit scores.
• Scams.

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1. Why Credit Reports are Important.
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Your Credit History is Used to Determine Your
Character.

• Creditors and lenders use the three Cs.
• Character
• Capacity
• Capital
• Creditors and lenders cannot use
• Age, race, gender, marital status, religion,
  national origin, or receipt of public assistance.

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Your Credit History is Your Financial Report Card.

• Having a good credit history is like having a
  4.0.
• Everybody trusts you.
• Having a bad credit history is like having a few
  Fs.
• Everyone cant help but wonder

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2. How Credit Reports Work.
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• A Credit Report
• 4 Basic Elements
• Personal identification
• Public records/collections
• Payment history
• Inquiries

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Consumer Reporting Agencies

• Known as Credit Bureaus
• Companies that compile your credit information
  into a credit report.
• Information is collected from various information
  providers.

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Understanding How the Industry Works

CRA
Providers Lenders Collection Agencies Public
Records You-the consumer
Users Lenders Employers Landlords Insurers
Collect Maintain Sell
Information
Credit Report
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You Can Get a Copy

• Call the three bureaus
• Equifax 800-685-1111
• Experian 888-397-3742
• Trans Union 800-888-4213
• Each copy will be 8.50 Unless

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You Can Get a Copy

• You are unemployed but seeking a job
• you are on welfare
• youve been a victim of fraud
• youve been denied credit in the past 60 days

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Reporting Limits

• Inquiries- 2 years
• Collections, judgments, late payments- 7 years
• Paid collections and judgments- 5 years in NYS.
• Bankruptcies- 10 years
• Student Loans- No limit

State Time Limit 7 Years
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3. Inaccuracies.
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Inaccuracies

• Personal information overlap-
• Common names
• Similar SSNs
• Jr Sr mix up
• Reporting periods-
• Items dont drop off when they should
• Unreported changes-
• Creditor hasnt updated the bureaus

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(No Transcript)
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Once Youve Disputed in Writing

• Any unverifiable information must be deleted from
  your file.
• They must give written results and report
• If requested, the CRA must send an updated file

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4. Credit Scores.
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A Credit Score

• is like a credit grade.
• Scores range from 300-900. (900 being the best)
• They are generated from a formula that evaluates
  your information.

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Things that Lower Your Score

• No Credit history.
• Too much unsecured debt.
• Too many accounts.
• Too many applications for unsecured credit.
• Late payments.
• Collections.
• Judgments.

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Things that Lower Your Score

• Bankruptcies.
• Too many job changes in a short period of time.
• Too many address changes in a short period of
  time.
• Repossessions.
• Poor debt to income ratio.

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The Bottom Line to Improving Your Score

• Pay your bills on time.
• Pay down outstanding balances.
• Do not take on new debt.

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5. Scams.
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Credit Repair Scams

• The Scam
• The Warning Signs
• payment before services
• not informed of your rights what you can do
  your self- for free
• recommend that you not contact a CRA directly
• suggest that you invent a new credit report
• advise you to dispute everything or take any
  action that seems illegal..
• Realize that no one can improve your credit
  better than you can.