What you “look” like at the credit bureau

What creditors see when they pull up your records

Credit report

• This is simply a record of your personal financial transactions/credit history.

Think of it the same way as a report card from school tracks your grades and success

Credit Score

• Remember the 4 C’s of credit?

• Collateral

• Capitol

• Capacity

• Character

• These are all factored and considered into your Credit Score

When is my credit report pulled up?

• Anytime you apply for a type of loan, or loan product!

• Creditors actually purchase your report from the credit bureau and review it in order to make a decision on whether or not to give you a loan, and or determining the loan terms

Surprising places that look…

• Land lords

• Cell phone companies

• Employers

Who are the Credit Bureaus?

• Three main credit reporting agencies in the U.S.A: Equifax, Experian and TransUnion

• These are regionally located, west coast, east coast and mid west.

When Can I Look at My Credit Score?

• You are allowed to view your credit once a year, for free, without penalty. Personally requesting this DOES NOT hurt your score, however, too many creditors accessing your credit can ruin your score

Keys to Building a Good Credit Score

• Pay your bills on time

• Save your money; savings account

• Be choosy about credit cards and loans you take

• It is better to maintain a low balance on a card and pay it off consistently than to not have any balance

Ways To Hurt your Credit Score

• Making late payments-ONE late payment can hurt your score

• Writing bad checks

• Maintain high balances on credit cards and loans

• Changing credit cards frequently; transferring balances

What If Your Credit Report Contains An Error?

• This can happen, sometimes by a mistake or if fraud has taken place. Contact the credit bureau and ask an agent to investigate the error; they are required by law to correct anything that is a mistake…this can take awhile, but is important to be proactive about.

Tips For Securing Credit

• Get a credit card from the bank where you already have a savings and checking account

• Apply for a store credit card; Gap, Old Navy. These are easier to obtain than major bank cards

• If you are renting an apartment with friends, get a utility in your name and PAY it!

Did You Know?

• Read and consider this section on page 52