1. Understanding Your Credit Report Women In Agriculture Conference January 19, 2007 Dover, DE

2. Megan O’Neil-Haight Family, Youth & Communities Educator Crystal Terhune Family and Consumer Science Educator “Educating people to help themselves.”

3. By the end of the training you will understand: How to obtain and interpret your credit report. What information on a credit report is seen as negative. That it is never too late to start to rebuild good credit. Some ways to improve one’s credit.

4. How do companies know if you have bad credit?  Information about your credit is kept by credit reporting bureaus.  Equifax  TransUnion  Experian  This information on file about you is called a credit report.

5. What’s on your credit report?  Record of your loans, credit cards, payments and outstanding debts  Current and past payment information On-time and late payments  Outstanding credit limits and balances  Information from public records  Record of companies who have asked for a copy of your report

6. What is “good credit”?  Meeting your responsibilities.  Not taking on more than you can handle.

7. What is “bad credit”?  What does bad credit mean to you?

8. Good credit Reliable in paying bills Bills are paid on time Obligations are met as agreed Companies willing to extend credit Bad credit Unreliable in paying bills Bills are paid late Debts are abandoned Filed for bankruptcy Companies reluctant to extend credit, or charge very high interest Vs.

9. How do you know if you have bad credit? Many people first realize they have credit problems when they are turned down for a loan, a job or a rental dwelling.

10. Why is credit denied?  No credit history  Too much outstanding credit  Credit not handled responsibly in the past

11. Credit Profile Activity  Evaluate the scenario: Should the applicant be approved for the credit or loan?

12. Credit Profile: Lupita  Lupita, 47, got her first credit card when she was 25.  She always pays her bills on time.  Lupita currently has 4 credit cards...  In addition, Lupita has a mortgage, a car loan, and a loan for her daughter’s college tuition.  She has been an upper manager at a phone company for 22 years, where her annual salary is $80,000.  Lupita now wants to finance a new $23,000 car for her daughter. Do you think Lupita will get the loan?

13. Credit Profile: Henry  Henry, 33, has been married and divorced twice. He has earned $35,000/yr as a mechanic since age 20.  He built a good credit history and had four credit cards; he always made his child support payments on time.  He received notice that his paycheck would be garnished for the child support payments when his second wife moved away.  Henry was injured, went on disability leave, and couldn’t work for a year. He continued with minimum payments on his credit cards and child support, but he could not afford his car payments, so his car was repossessed.  Once he started working again, he decided to apply for a $6,000 loan to buy a used car. Do you think Henry’s car loan will be approved?

14. Who can get a copy of your credit report?  You!  Only those who can prove a legitimate need: Banks Credit card companies Landlords or real estate companies Employers

15. How can you get a copy?  www.annualcreditreport.com Experian, TransUnion, Equifax  You’ll need to provide this information: Full name Birthdate Social Security # Addresses & phone# for past 2-5 years Additional security verification answers

16. Start Here

17. It’s your right to see a copy of your credit report!  One free copy from each bureau each year.  Also free if you’ve been turned down for credit, insurance, or employment (based on your report) within the past 60 days.  Free if you become a victim of credit fraud.  Otherwise, the cost is about $9/copy.

18. Sample credit reports  Let’s take a look at sample reports from the three largest credit reporting bureaus: Equifax Experian TransUnion  Credit reports can be complex, so we’ll go over them in detail.

19. Details on your credit report  Your name, birth date, past addresses, employers  Current credit accounts  Inquiries: Companies that requested your credit file  Public information  Credit accounts you’ve had in the past seven years (or the past ten years if you filed for bankruptcy).

20. You’ve got your credit report... now what?  Check it carefully.  Look for accounts that might not be yours.  Verify all credit limits/balances.  Make sure accounts you’ve closed say ‘Closed at consumer’s request.’  Begin to correct mistakes.  Tell your side of the story.

21. Filing a dispute  Fill out the form/letter enclosed with your bureau report, and return it back to the bureau. The bureau must respond in 30-45 days  If after hearing from the bureau you disagree with their response, you may add up to a 100-word statement.

22. Rebuilding Good Credit  It’s never too late to start getting your credit back on track!  Pay your existing credit accounts on time.  Apply for a credit card or small loan from your bank, credit union, or a local department store.  Close unneeded accounts

23. What is a credit (FICO) score?

24. What about ID theft?  Notify all three credit bureaus right away & request a “victim’s statement” be placed on file.  Immediately notify account holders to close or monitor accounts.  File a police report.  Contact Federal Trade Commission’s ID Theft Hotline: 877-438-4338.  Contact your local office of Consumer Affairs.

25. Take-home activity:  The handout titled “How does your credit stack up?” is a credit self- evaluation worksheet.

26. Questions & answers Now’s your chance to ask those nagging questions!

27. Please fill out the evaluation form and leave them on your way out. Adapted from Money Wi$e, a joint financial education project of Consumer Action and Capital One. Please note that the material in this presentation is copyright reserved and can not be reproduced without consent from Consumer Action. Thank You!

28.  Megan O’Neil-Haight Maryland Cooperative Extension, Wicomico and Worcester Counties P.O. Box 219, 100 River Street Snow Hill, MD 21863 Phone: 410-632-1972/ Fax: 410-632-3023 oneil@umd.edu  Crystal Terhune Maryland Cooperative Extension, Caroline County 207 S. 3 rd Street Denton, MD 21629 Phone: 410-479-4030/ Fax: 410-479-4042 crystalt@umd.edu