solving the mystery of credit reports...

Solving the Mystery of Credit Reports

Credit Bureaus

• 3 major credit bureaus• Equifax• Experian• TransUnion

• Credit information is reported to bureaus

• Not all creditors report to all 3• Regulated by Consumer Financial 

Protection Bureau

The Fair Credit Reporting Act

• You may access your own file

• You can dispute inaccuracies

• Outdated information must be removed

• Access to your file is limited

• You must be told if information is used against you

Obtain Your Report

• Through Annual Credit Report Request Service

• Centralized service• One free year (more if fraud suspected)

• Through the credit bureaus• Fee for report

FICO vs. Vantage

FICO Score VantageScore

Range 300-850 Range 501-990

No letter grades for FICO Uses letter grades to spell out your credit history• 901-990 = A or Super Prime• 801-900 = B or Prime Plus• 701-800 = C or Prime• 601-700 = D or Non-Prime • 501-600 = F or High Risk

Takes into account 5 components Takes into account 6 components

Thin file consumers often cannot generate a credit score at all, or are scored with inflated, high scores because they have few credit actions on file

Claims to score thin file consumers more accurately by providing predicative scores for consumers with limited histories

The Fair Credit Reporting Act

Sections of the Report

Identification • Name, DOB, SS#, Address

Public Records  • Bankruptcy, judgment, liens

Accounts • Payment history, balance, date opened

Inquiries • Record of requests for your file

Trade Lines

• Creditor name/partial account number • Date account opened• Payment history (on‐time, delinquent, 

charge‐offs)• Date of last activity (DLA)• Current balance• Joint/individual account• Current status• Credit limit

Credit Scoring

• FICO scores range from 300‐850 • Score is based on several factors

10%

35%

30%

15%

10%Types of Credit Used

Payment History

Amounts Owed

Length of Credit History

New Credit

• Positive information canremain indefinitely

• Most types of negative information 7 years from when first reported

• Chapter 7 bankruptcy reportedfor 10 years

• Collection accounts 7 years

How Long Will it Stay?

• Fill out dispute form at website of credit bureau reporting inaccurate information

• Send any mail certified, and keep copies of everything

• Use 100‐word statement to explain if dispute fails

Correct Inaccuracies

Beware Credit Repair

• Charge fees to do things you can do for yourself for free• Company may be engaging in illegal activities in your name• Take steps yourself to dispute incorrect or outdated 

information

• Preventing fraud

• Protect your information• Shred anything with your account numbers• Review credit report• Monitor statements carefully

Identity Theft

Damage Control

• File police report• Contact credit bureaus• Contact creditors• Monitor accounts• Review credit report quarterly• Contact any other affected organization

• DMW• Social Security• Financial Institutions

• ChexSystems• Used when opening new accounts• Tracks returned checks

• National Tenant Network• Used by landlords• Reports evictions

Other Types of Reports

www.AnnualCreditReport.comChexSystems ‐ 1‐800‐428‐9623Federal Trade Commission ‐ www.FTC.govwww.VantageScore.com & www.MyFICO.com 

Resources

Final Thought

With a little awareness and effort, you can have and keep an excellent credit history that will open a lot of 

opportunities in your financial life.

Questions?

BALANCE is a free financial education and counseling service available to all VCCU members. Services include: • Webinars• Counseling services• Podcasts and short videos• Online tools• Debt repayment options• Credit report review• And more….

Call toll‐free 888.456.2227 or visit vccuonline.balancepro.org

Ventura County Credit Union

805.477.4000    •    800.339‐0496    •    vccuonline.net

• Camarillo• Thousand Oaks• Moorpark• Simi Valley

• Ventura• RiverPark at the Collection in Oxnard• Oxnard• Port Hueneme

Our mission is to improve the financial well‐being of our members and our community.

We’re social!

8 convenient locations

Pattie BragaSenior Community Development Officer805.477.4052 work805.797.3985 cell

Thank you!