1. CHAPTER 32 CREDIT RECORDS AND REGULATIONS

2. CREDITWORTHINESS Established a credit record You are a good credit risk Lenders will want to know: 1. How much you earn and your savings 2. Reliability, occupation, years of service 3. How long you have lived at same address 4. Own or rent a home

3. CREDIT REPORT COMPANIES Experian Equifax (190 million credit files) Trans Union

4. CREDIT RECORDS Important to keep accurate records CREDIT MEMORANDUM--written record of the amount subtracted from your account when you return merchandise

5. YOUR RIGHTS Truth-in-Lending Law--requires the cost of credit (APR) is communicated; protects against unauthorized use of credit cards Equal Credit Opportunity Act--prohibits creditors from denying credit because of age, race, sex, or marital status

6. YOUR RIGHTS continued Fair Credit Billing Act--requires prompt correction of billing mistakes; withhold payment on any balance due on defective merchandise Fair Credit Reporting Act--gives consumers the right to know what specific information credit bureaus are providing to potential creditors

7. YOUR OWN CREDIT HISTORY Things you can do now: get good grades, good attendance, have a checking and saving account, charge small purchases Sources of help: 1. Communicate with your creditors 2. Make a realistic proposal to pay off 3. Keep promises that you make 4. Written copy of agreement