1. © South-Western Educational Publishing Chapter 17 Credit Records and Laws Establishing Good Credit Credit Ratings and Legal Protection

2. GOALS © South-Western Educational Publishing Lesson 17.1 Establishing Good Credit Discuss the importance of credit records and summarize how and why records are compiled. Describe the five Cs of credit. Explain how to get started using credit.

3. © South-Western Educational Publishing Credit Records Your credit file How information is gathered and used Types of information stored

4. © South-Western Educational Publishing Credit Records Every person who uses a credit card or takes out a loan begins to establish credit.

5. © South-Western Educational Publishing Controlyourcredit.gov

6. © South-Western Educational Publishing How credit scores are used

7. © South-Western Educational Publishing Credit scores may vary

8. © South-Western Educational Publishing

9. Important information about credit scores

10. © South-Western Educational Publishing Credit bureau Credit history Credit report Subscribers

11. © South-Western Educational Publishing Credit report – where?

12. © South-Western Educational Publishing

13. Free Credit Report A Warning About "Imposter" Sites The FTC advises consumers who order their free annual credit reports online to be sure to correctly spell annualcreditreport.com, or link to it from the FTC's website to avoid being misdirected to other websites that offer supposedly free reports, but only with the purchase of other products. annualcreditreport.com

14. © South-Western Educational Publishing Free Credit Report While consumers may be offered additional products or services while on the authorized website, they are not required to make a purchase to receive their free annual credit reports.

15. © South-Western Educational Publishing Credit Monitoring How to Monitor Your Credit Report

16. © South-Western Educational Publishing Creditworthiness Character Capacity Capital Conditions Collateral Five Cs of Credit

17. © South-Western Educational Publishing Character

18. © South-Western Educational Publishing Capacity

19. © South-Western Educational Publishing Capital

20. © South-Western Educational Publishing

27. Getting Started with Credit Begin with a savings account. Open a checking account. Open a store credit account. Get a small loan. Apply for a credit card.

28. GOALS © South-Western Educational Publishing Lesson 17.2 Credit Ratings and Legal Protection Describe credit ratings and a point system for determining creditworthiness. Outline the contents of a credit report. Discuss the protections provided by the major credit laws.

29. © South-Western Educational Publishing What makes up a credit score?

30. © South-Western Educational Publishing Payment History

31. © South-Western Educational Publishing Type of credit in use

32. © South-Western Educational Publishing New credit

33. © South-Western Educational Publishing Length of credit history

34. © South-Western Educational Publishing Debt

35. © South-Western Educational Publishing Credit Ratings Excellent credit rating Good credit rating Fair credit rating Poor credit rating

36. © South-Western Educational Publishing The impact of negative information on your credit score How long do you think late payments stay on your credit report?

37. © South-Western Educational Publishing Late payments

38. © South-Western Educational Publishing The impact of negative information on your credit score How long do you think collection accounts and charge-offs stay on your credit report?

39. © South-Western Educational Publishing Collection accounts and charge-offs

40. © South-Western Educational Publishing The impact of negative information on your credit score How long do you think bankruptcies stay on your credit report?

41. © South-Western Educational Publishing Bankruptcies

42. © South-Western Educational Publishing The impact of negative information on your credit score How long do you think unpaid tax liens stay on your credit report?

43. © South-Western Educational Publishing Unpaid tax liens

44. © South-Western Educational Publishing Negative Information

45. © South-Western Educational Publishing

48. Closing Accounts – can be harmful

49. © South-Western Educational Publishing Credit Inquiries Whenever you or someone else accesses your credit report, an inquiry is created. Some inquiries can hurt your credit score.

50. © South-Western Educational Publishing Good Inquiry vs. Bad Inquiry

51. © South-Western Educational Publishing

52. Credit Reports Summary of information Public record information Credit information Account detail Requests for credit history Personal information

53. © South-Western Educational Publishing Inaccurate information When you find an error Write to the credit bureau & information provider Send certified mail Credit bureau has 30 days to respond

54. © South-Western Educational Publishing Credit repair Fixing Credit Card Errors

55. © South-Western Educational Publishing

57. Credit Laws Consumer Credit Protection Act Fair Credit Reporting Act Fair Credit Billing Act Equal Credit Opportunity Act Fair Debt Collection Practices Act

58. © South-Western Educational Publishing

60. Missed car payments

61. © South-Western Educational Publishing Fair Debt Collection Practices

62. © South-Western Educational Publishing Parts of a credit report a credit report THANK YO U F O R B A N K I N G WITH Your First Bank Please address all future correspondence to: Credit Reporting Agency Business Address City, State 00000 PERSONAL IDENTIFICATION INFORMATION Your Name 123 Current Address City, State 00000 Previous Address(es) 456 Former Rd. Atlanta, GA 30000 P.O. Box XXXX Savannah, GA 40000 Social Security #: 123-45-6789 Date of Birth: April 10th, 1940 Last Reported Employment: Engineer, Highway Planning

63. © South-Western Educational Publishing PUBLIC RECORD INFORMATION Lien Filed 03/93; Fulton CTY; Case or Other ID Number-32114; Amount-$26,667 Class-State; Released 07/93; Verified 07/93 Bankruptcy Filed 12/92; Northern District Ct; Case or Other ID Number-673HC12; Liabilities-$15,787; Personal; Individual; Discharged; Assets-$780 Satisfied Judgement Filed 07/94; Fulton CTY; Case or Other ID Number-898872; Defendant- Consumer; Amount-$8,984; Plaintiff-ABC Real Estate; Satisfied 03/95; Verified 05/95

64. © South-Western Educational Publishing Collection agency info COLLECTION AGENCY ACCOUNT INFORMATION Pro Coll (800)XXX-XXXX Collection Reported 05/96; Assigned 09/93 to Pro Coll (800)XXX-XXXX Client-ABC Hospital; Amount-$978; Unpaid; Balance $978; Date of Last Activity 09/93; Individual Account; Account Number 787652JC

65. © South-Western Educational Publishing