Transcript Credit reports and credit - Marine Federal Credit Union

Credit Reports and
Credit Scores
Mike Keith
355-5616, Tues, Wed, Thurs, 9am-5pm
The credit fairy does not
exist !
Credit Bureaus
Equifax
 Experian
 Transunion

Credit bureau

A consumer reporting agency that
regularly engages in the practice of
assembling and maintaining
consumer credit information or other
information on consumers for the
purpose of furnishing reports to third
parties.
What is a credit report?

Record of an individuals credit history.

A credit report contains personal
information gathered from approved
sources on an ongoing basis. Approved
lenders, retailers, utility companies can
use the data to make credit decisions,
approve benefits, or service decisions.
A credit report does not contain:








Race.
Religion.
Health or medical information.
Driving record.
Criminal record.
Bankruptcies over 10 years old.
Derogatory items more than 7 years old.
Sensitive data-Alcohol or drug treatment,
mental health treatment, medical data details.
Your credit report may contain:








Name and any variations, aka.
Date of birth, phone #
Current and previous addresses.
Employment data.
Financial accounts and payment history.
Public records: Liens, Bankruptcies, Civil
Judgments.
Collection accounts.
Inquiries.
A credit score does not consider:
Race, color, religion, national origin,
sex, marital status.
 Age, salary, occupation, title,
employment history.
 Where you live.

Credit score

A number from 300 to 850 that
indicates how credit worthy you
are.
Credit reports are used for:
Landlords
 Insurers
 Utility providers and cell phones
 Employers (security clearance)
 Credit

Debt

Secured-Installment credit

Unsecured-Revolving
credit
Installment vs. Revolving Debt





Installment
Beginning balance $2500.
Interest rate
10%
Payment
$63.40
Years repay
4
Interest cost
$544.
Revolving
$2500.
18.5%
$50.00
30
$6,500.
Auto loan:$25,000. for 72 months

Int. rate 5%
Pmt $402.
Total $28990.

Difference of $9075.


15%
$527.
$38065.
Home loan: $200,000. for 30 years

Int. rate
5%
Mth pmt $1066.
Total paid $386,643.

Difference $45,200.

15 vice 30 years. $1580. pmt. saves $101,905.


6%
$1199.
$431,843.
Debt to credit limit ratio
Limit
$3000.
$3000.
Balance
$2000.
$2000.
$3000.
0
$9000.
44%
66%
How can I improve my score?







Pay on time.
Keep balances low.
Eliminate unnecessary revolving credit.
Minimize balance transfers.
Apply for new credit sparingly.
Review credit reports regularly and correct
errors.
Learn what your current FICO score is.
How can I obtain a copy of my credit
report ?



Order through the three credit bureaus.
www.annual credit report .com
Toll free number: 1-877-32-8228
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Free copy provided if:




Denied credit, housing, employment, insurance
Unemployment
Fraud
Public assistance
Credit Bureau Contact Information
Equifax
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
Trans Union
P.O. Box 2000
Chester, PA 19002
1-800-888-4213
Experian
P.O. Box 2002
Allen, TX 75013
1-866-200-6020
Questions?