1. 1 Brought to you by Michigans Assistive Technology Program at MDRC. Assistive Technology Webinar Series 1

2. Use the public chat area on the right hand side. Questions and comments are encouraged and expected! The session is being recorded. We will start recording now. About the Webinar 2

3. 3 Repairing and Establishing a Positive Credit History Adapted from the FDIC Money Smart Curriculum Presenter: Michele Seybert Build Your Credit

4. Credit report – what is it and how is it used? How to order a copy of your credit report. What a credit report looks like. Identify ways to build and repair your credit history. How to minimize the risk of identity theft 4 You will Learn

5. A credit report is a record of how you have paid your debts. It tells lenders: Who you are. How much debt you have. If you pay your bills on time If there is negative information about you in public records. 5 Credit Report

6. Identifying Information Name Social Security number Current and previous addresses Telephone number Birth date Current and previous employers Spouses name 6 What does a credit report say?

7. The credit score is: A number that predicts how much of a credit risk you will be. Calculated based on information in your credit report. 7 Credit Score

8. Scores range from about 300 to 900. How do they get that number? Past payment history – 35 percent Outstanding debt – 30 percent How long you've had credit – 15 percent New applications for credit – 10 percent Types of credit – 10 percent 8 FICO Score or Credit Score

9. A chart showing Percentage of credit score: Payment history 34% Outstanding Debt 30% credit lenght 15% new credit apps 10% types of credit 10% 9 FICO Score – Where does it come from?

10. Pay off your debt Pay on time Only open accounts you need Dont close old accounts Keep track of your credit score 10 Boosting Your Score

11. Your credit history is your account record with different creditors. It will show how many loans you have received and how you have repaid each loan. 11 Credit History

12. When you apply for credit, you allow the lender to ask for a copy of your credit report an inquiry. Your credit score may drop if you apply for new credit. Most credit scores are not affected by several inquiries from auto or mortgage lenders within a short period of time (30 days). 12 Inquiries and Your Credit Score

13. A list that shows who has requested and viewed your credit report. The only inquiries that count toward your FICO score are the ones that result from your applications for new credit. 13 Inquiries

14. Items that are matters of public record Collection accounts Bankruptcies Foreclosures Tax liens Civil judgments Late child support payments. 14 Public Record Information

15. Tax Lien - claim against property, or assets, filed by the taxing authority for unpaid taxes Judgment - court order placing a lien on a debtors property as security for a debt owed to a creditor 15 Public Record Definitions

16. Collection account - past due account that has been referred to a specialist to collect part of all of the debt Bankruptcy - legal proceeding that can legally release a person from repaying debts 16 Public Record Definitions (Cont.)

17. How long will a public record stay on your report? Negative Information Time on Credit Report 7 years from date filed 7 years from date paid 7 years from last activity 7 years from date of discharge 10 years 17 General civil judgments Tax liens Collection accounts Chapter 13 bankruptcy Chapter 7 bankruptcy

18. Equifax Experian TransUnion 18 Credit Reporting Agencies

19. Information in your credit report may determine whether you will: Get a loan or other form of credit. Get a job. Rent an apartment. 19 How Your Credit Report Is Used

20. If you have a computer that can access the internet you can go to www.annualcreditreport.com to get a free copy of your credit report.www.annualcreditreport.com Caution: Misspelling this site or using another site with similar words will take you to a site that will try to sell you something or collect your personal information. 20 How to get a copy of your Credit Report - Website

21. www.AnnualCreditReport.com 21

22. Name Date of Birth Social Security Number Address Previous address - if less than two years at current address Click Submit 22 Required Information

23. By Mail By Phone - Call toll-free 877-322-8228 These are the only ways to get free credit reports without any strings attached. The "free" credit reports advertised by other sources are not really free! 23 Other ways to get your free credit report

24. Apply for small loan where you already bank. If possible, make a large down payment on a purchase. Ask a friend/relative to be a cosigner. Pay bills on time. Ask lender to review rent and utility payments. Make regular payments to savings. 24 Tips on Building Credit History

25. No one can remove accurate information from your credit report. It can take years to repair your credit. No one can create a new identity for you. 25 The Truth About Credit Repair

26. Legitimate companies provide a service before requesting payment. You can order your credit report yourself. 26 The Truth About Credit Repair (Cont.)

27. Protect your social security number, credit and debit card numbers, PINs, and passwords. Protect incoming and outgoing mail. Sign up for direct deposit. Shred financial information before placing in trash. Keep close eye on bank and credit card statements. 27 Avoiding Identity Theft

28. Avoid ID theft on computer. Exercise rights under FACTA (Fair and Accurate Credit Transactions Act). Visit the Federal Trade Commission Website: www.ftc.gov/idtheft/ 28 Avoiding Identity Theft (Cont.)

29. If a victim, act fast! You are entitled to place a fraud alert on your file. You can receive copies of your credit report from each of the three CRAs free of charge – regardless of whether you have previously ordered your free annual reports. 29 Victim of Identity Theft

30. Federal Deposit Insurance Corp. (FDIC) Money Smart Financial Education http:www.fdic.gov/consumers/consumer/moneysmart/over view.html Your Money: the Missing Manual By J.D. Roth Pursuit of the Dream: Building Credit For Life (20 minute video) Available at www.aecf.org 30 Resources

31. Contact me if you have any questions: Michele Seybert 800-828-2714 seybert@ucpmichigan.org 31 Questions?

32. 32 Thank you for completing the online survey about this webinar. A link will be emailed to you. If you do not want to receive email notices of future assistive technology webinar opportunities, please send an email to mdrc@prosynergy.org and ask to be removed from the AT Webinar list.mdrc@prosynergy.org Thank you!

33. "The only real mistake is the one from which we learn nothing." -John Powell "Even if you are on the right track, you'll get run over if you just sit there." -Will Rogers 33 Final Thoughts