1. Credit Reports and Credit Scores
By Julie Chapman
For

2. Credit Reports All consumers who use credit have a credit report
Three Major Credit Bureaus:
Equifax
Transunion
Experian

3. What does it include? Personal Information
Name, Address, Social Security #
Employment - current and former
Account Information -what you owe now or open accounts and payment history
Public Records – liens, judgments, bankruptcies

4. What does it include? Inquiries - when you applied for credit
Public Records – bankruptcies, liens

5. What is NOT included? Bankruptcies > 10 years old
Gender, Ethnicity, Religion, Political affiliation, medical history, or criminal records
Credit Score

6. Who can look at my credit report?
Potential Lenders and Credit Card Companies
Landlords
Insurance Companies
Employers or Potential Employers
Anyone with your written authorization

7. Credit Scores
Rating used to help a lender decide if you qualify for a particular credit card, loan or service
Different than a credit report!
Estimate of the risk a company assumes for lending you money

8. Credit Scores FICO score is most commonly used.
VantageScore is a recently created score used by the 3 major credit bureaus.
Higher Score = Less Risk
Math model that evaluates many types of info in your credit file including your credit report.

9. Credit Scores
What is in a FICO score?
Graph is from

10. Credit Scores
What is in a Vantage score?
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11. What affects your credit score?
Payment History
Late payments
How long payments have been late
Number of late balances
Number of accounts paid off on time
Bankruptcy
Write-offs
Collections
From

12. What affects your credit score?
Amounts Owed
Types of accounts owed
Number of accounts owed
Proportion of balances owed to credit limit
From

13. What affects your credit score?
Length of Credit History
Time since account opened
Time since activity on account
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14. What affects your credit score?
New Credit
Number of recently opened accounts
Number of recent credit inquiries
Re-establishment of positive credit history following payment problems
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15. What affects your credit score?
Types of Credit Used
Number of various types of accounts
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16. Credit Scores FICO scores range from 300 – 850
680 used to be considered very good. Now 720.
Majority 600 – 700

17. Vantage scores range from 501 – 900
A: 900–990B: 800–899C: 700–799D: 600–699F: 501–599

18. Credit Reports & Credit Scores
Both are used to assess risks of loan money, hiring, leasing to, etc.
Some use only the credit score, but often other factors are considered.

19. Credit Reports & Credit Scores
Recommended to check credit reports and scores once a year with each credit bureau:
Equifax
Transunion
Experian

20. Credit Reports & Credit Scores
Law requires 1 free credit report per year per bureau.
Must be requested.
Go to the following site to request