Credit & Specialty Reports And Credit Scores
advertisement
Credit & Specialty Reports and Credit Scores Consumer Action created this project with funding from Experian © Consumer Action 2010 Credit & Specialty Reports • • • Consumer reporting agencies compile and sell information about you. Consumer reports include reports about you made to banks, landlords, and employers. Under FCRA and FACTA you have a right to free reports from all CRAs every 12 months. Credit & Specialty Reports and Credit Scores © Consumer Action What’s in your credit report? • • • • • Personal information Trade lines (mortgage, car loan) Delinquent accounts (water bill) Public records Inquiries Credit & Specialty Reports and Credit Scores © Consumer Action ACTIVITY: Reading and Interpreting a Credit Report Credit & Specialty Reports and Credit Scores © Consumer Action Specialty Reports • • The Medical Information Bureau (MIB) compiles and maintains records used by individual life, health, long-term, and disability insurance companies. IntelliScript and MedPoint are databases that report prescription drug purchase histories. Credit & Specialty Reports and Credit Scores © Consumer Action Residential Tenant Reports • Residential tenant reports compile residential and tenant history, including evictions. LexisNexis Resident History Report: 877-488-5732 First Advantage Safe Rent: 888-333-2413 Tenant Data: 800-228-1837 RentBureau: 877-704-4519 Credit & Specialty Reports and Credit Scores © Consumer Action Utilities & Telecommunications Records • National Consumer Telecom & Utilities Exchange, Inc. (NCTUE) compiles information about new connection requests and defaulted and/or fraudulent accounts. www.nctue.com 888-201-5643 Credit & Specialty Reports and Credit Scores © Consumer Action Check Writing History • Three major companies report on check writing history: ChexSystems, SCAN, and TeleCheck. ChexSystems phone: 800-428-9623 SCAN phone: 800-262-7771 TeleCheck phone: 800-366-2425 Credit & Specialty Reports and Credit Scores © Consumer Action Employment Background Check • LexisNexis Employment History Report (formerly provided by ChoicePoint) 866-312-8075 personalreports.lexisnexis.com Credit & Specialty Reports and Credit Scores © Consumer Action Employment Data Reports • The Work Number maintains information on approximately 25 million employees. www.theworknumber.com 866-604-6550 Credit & Specialty Reports and Credit Scores © Consumer Action Insurance Claims Reports • Insurance claims reports tell insurers about claims you have made against your homeowners or automobile insurance LexisNexis C.L.U.E. Report: 866-312-8076 Insurance Services Office (ISO) A-Plus Report: 800-627-3487 Credit & Specialty Reports and Credit Scores © Consumer Action Comprehensive Report • LexisNexis Full File Disclosure includes data from a consumer’s specialty reports and public records: https://personalreports.lexisnexis.com 866-312-8075 Credit & Specialty Reports and Credit Scores © Consumer Action Your Rights • • • • • • Right to a free report every 12 months, after adverse action, or under other limited circumstances Right to dispute inaccurate or outdated info Right to contact the source of the disputed information directly Right to include a statement of explanation Right to sue Other rights under state law Credit & Specialty Reports and Credit Scores © Consumer Action ACTIVITY: How Much Do You Know About Specialty Reports? Credit & Specialty Reports and Credit Scores © Consumer Action Credit Scores • • • A three-digit number that summarizes the information in your credit report There are different scoring models—all result in a slightly different score Points are given for many factors, including: payment history available credit and utilization amounts owed length of credit history new credit types of credit used Credit & Specialty Reports and Credit Scores © Consumer Action Interpreting Your Credit Score • • • Depends on the scoring model used FICO scores are most widely used (common scale is 300-850) VantageScore uses 501-990 (equivalent to academic A-F scale) May differ among credit bureaus All scores should represent close to the same level of lending risk Credit & Specialty Reports and Credit Scores © Consumer Action Your FICO Score Credit & Specialty Reports and Credit Scores © Consumer Action Your Vantage Score Credit & Specialty Reports and Credit Scores © Consumer Action Obtaining Your Scores • • Can buy scores with credit report or separately Free score now only if lender shares it Right to free scores under certain circumstances coming in July 2011 Credit & Specialty Reports and Credit Scores © Consumer Action Reasons to Improve Your Credit • • • Increases chances your applications will be approved Makes it possible to achieve important goals Reduces the cost of credit (lower interest rates) good credit can save you many thousands of dollars over time! Credit & Specialty Reports and Credit Scores © Consumer Action Financial Cost of Bad Credit Cost of a 36-month car loan of $18,000 Borrower One Borrower Two Credit score 695 600 Interest rate 8.138% 15.277% Monthly payment $785 $870 Total paid $28,260 $31,320 Cost of a low score $3,060 Source: myFICO.com. Scoring is on a scale of 300 to 850. Credit & Specialty Reports and Credit Scores © Consumer Action Preventing Credit Damage from ID Theft • • • • Anyone with a Social Security number can become a victim of identity theft Check your children’s reports, too Check credit reports regularly to spot suspicious activity sooner rather than later Flag credit reports for deceased family members so ID theft doesn’t go undetected Consider a fraud alert on credit reports if you are or may be an identity theft victim Credit & Specialty Reports and Credit Scores © Consumer Action ACTIVITY: Improving Your Credit Score Credit & Specialty Reports and Credit Scores © Consumer Action ACTIVITY: Check It Out! Reports & Scores Quiz You can download the game from Consumer Action’s website: www.consumeraction.org/outreach/articles/consumer_reports_scores_quiz_g ame/ Credit & Specialty Reports and Credit Scores © Consumer Action Resources • • • • • • • • Federal Trade Commission (FTC) AnnualCreditReport.com Privacy Rights Clearinghouse (PRC) National Foundation for Credit Counseling (NFCC) Association of Independent Consumer Credit Counseling Agencies (AICCCA) Identity Theft Resource Center Check It Out! Reports & Scores Quiz Sally Walker Case Study Credit & Specialty Reports and Credit Scores © Consumer Action Congratulations! You’ve completed Credit & Specialty Reports and Credit Scores Consumer Action Web: www.consumer-action.org Phone: 415-777-9635 / 213-624-8327 Email: hotline@consumer-action.org Credit & Specialty Reports and Credit Scores © Consumer Action
