credit reporting 101

CREDIT REPORTIN

G 101

T HE B

AS I C S

Presenter: ROCHELLE N.

BELNAP, Attorney at Law

November 2013

We are a consumer advocacy law firm in Tempe, AZ.

We practice in consumer debt & credit issues like:

• Debt Settlement

• Targeted Credit Repair, Restoration & Enhancement

• Credit Counseling

• FCRA & FDCPA Litigation

We are attorneys but we want:

• To change the way you think about attorneys;

• To make complicated things, simple;

• To be efficient and cost-effective.

WHAT IS BELNAP & FORBES, PLLC?

WWW.BELNAPFORBES.COM

Belnap & Forbes, PLLC 700 E. Baseline Rd. Ste. C-3 Tempe, AZ 85283(480) 907-6088 [email protected]

http://belnapforbes.com/



mailto:[email protected]?subject=Question%20from%20Webinar%20

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WHAT YOU SHOULD KNOW ABOUT BELNAP & FORBES

Who are we? Rochelle Belnap & Chris Forbes

What we do? We both practice in consumer debt and credit issues

Where did we meet? We met in law school and have been best friends ever since.

When did we start our practice? In February 2012

Why and How did we get into this area of law? The $50,000 Mistake







http://belnapforbes.com/firm-profile

TODAY’S TOPICS • What is a consumer credit report?

• What information is on a credit report?

• Where does a credit report come from ?

• Where can I get a credit report (for free)?

• What is the big deal with Credit Scores?

• The High Cost of Bad Credit

• What Matters to Your Credit Score?

• Where is the law in Credit Reporting?







WHAT IS A CONSUMER CREDIT REPORT?

Different types of credit reports that serve different purposes:

• Business transactions like loans, credit cards; or

• Personal transactions like check cashing, opening a bank account, and renting or leasing real estate.

What is a credit report?

A compilation of financial and personal information about an individual provided to an entity for the purpose of evaluating the individual’s risk of default aka “credit worthiness”







WHAT INFORMATION IS ON A CREDIT REPORT?

Personal Information

• Name(s)

• Addresses

• Date of Birth

• Social Security Number

• Place of Employment

• Income

Make sure this is correct to protect you against Identity Theft & Mixed File Issues!







Current & Past Financial Liability

aka Trade Lines, Accounts, etc.

• Credit Cards

• Mortgages

• Car loans

• Student Loans

• Lines of Credit

• Collection accounts


What is usually not reported

• Leases for real estate

• Utilities

• Debit cards

• Phone Bills







Public Records

• Judgments

• Bankruptcy Filings

• Tax Liens

It is important to make sure this information is yours, and that you resolve the underlying financial liability.








Credit Inquires

Soft Pulls = Don’t hurt your credit• When you pull your credit • Account Reviews • Promotional Inquiries

Hard Pulls = Can hurt your credit • When you apply for credit

How long? 2 years How much? It depends The shopping rule








Credit Scores!

More on that later!








WHERE DOES A CREDIT REPORT COME FROM?

Data Furnishers aka Subscribers

Report information about you to the Credit Bureaus • Creditors • Debt Collectors • other Data Basis (like Lexis Nexis

for Public Records)

Credit BureausCompile data about you from Data Furnishers • Equifax • Experian • Transunion

Credit VendorsGet information from the Credit bureaus and sell credit reports • Equifax, Experian, Transunion • Others like CBC Innovis







WHERE CAN I GET A CREDIT REPORT?

Many companies will sell you a credit report but…

• Watch out for monthly credit monitoring fees

• When companies advertise as “free”

The Law

People are entitled to a FREE copy of their credit report, annually, from all 3 credit bureaus through www.annualcreditreport.com

Probably not FICO scores.



http://www.annualcreditreport.com/

http://www.annualcreditreport.com/





CREDIT SCORES: FICO V. FAKO

How low and how high can my credit score be?

It depends on the type of score and who you are getting it from.

FAKO Scores FICO Scores

Transunion 501 to 990 300 to 850

Equifax 280 to 850 680+ Good

Experian 395 to 858 750+ Awesome

Source: http://www.myfico.com/crediteducation/whatsinyourscore.aspx



http://www.myfico.com/crediteducation/whatsinyourscore.aspx










WHY DO CREDIT SCORES MATTER?

The High Cost of Bad Credit

• Higher Security Deposits

• Higher Interest Rates

• Higher Down Payments

• Denied Financing

• May fail Security Checks

• Denied a job or a promotion or even fired







WHAT MATTERS TO YOUR CREDIT SCORE?

What hurts your credit?

• Closing accounts

• Inactive accounts

• Maxing out accounts

• Collection Account

• Public Records

• Pretty much everything, lol.

No credit can be bad credit!

Types of Credit

• Revolving (Credit Cards)

• Installment (Loans)

• Mortgages

Payment History

• Pay your bills on time!

Length of Payment History Matters

• Keep your oldest accounts







WHY IS A LAW FIRM TALKING ABOUT CREDIT?

The Law is EVERYWHERE!!!

We help people when they have bad credit, need to improve their credit, or they have errors on their credit report. Why?

• Every account on your credit report is governed by multiple bodies of state and federal law! Examples: Credit Cards, Cars, Mortgages, Vehicle Repossessions

• Errors Happen: 40 Million Mistakes + The $50k mistake

• Errors are hard to fix: 60 Minutes

• People don’t know enough about credit reporting so we want to educate.







We are on www.Facebook.com/belnapforbespllcwww.BelnapForbes.com Plus Stay Calm & Read My Blog here

Presenter: ROCHELLE N.

BELNAP, Attorney at Law

November 2013

Special Offer: Have credit reporting problems? Want help? Free Consult + 10% off our legal services if you complete your consultation by November 22, 2013.

Schedule Now.

Coming Soon: Introducing our DIY Credit Repair Kit to give you the best shot without hiring us. On sale November 18, 2013.

Happy Hour & Workshop! Bring you credit report!

RSVP

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credit reporting 101

Education

credit scores

consumer credit report

credit vendors

credit reports equifax

consumer debt credit

subscribers report information

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