2. CREDIT REPORT HOW TO UNDERSTAND YOUR PERSONAL CREDIT REPORT PREDICTIVEMETRICS.COM

3. WHAT IS A CREDIT REPORT? A credit report is information gathered by credit bureaus from different entities that display your payment history. Basically shows how well you pay back your debts and your willingness to do so. A good credit report results in a good credit score which will show that you are consistent and adequate in paying off debts and loans.

4. WHO ACCESSES YOUR CREDIT REPORT? YOU! Lenders when looking at your credit application Future employers when applying for a job Insurance companies Rental housing

5. HOW ARE CREDIT SCORES MADE? Credit reports are put together by Credit Bureaus who receive all of the information from sources such as utility companies, banks, and creditors, to name a few. The three national Credit Bureaus are: Experian TransUnion Equifax

6. CREDIT SCORE Experian, TransUnion, and Equifax calculate one’s credit score The score is used to rate applicants on qualities that are relevant to repayment of debt. The most popular score is the FICO (Fair Isaac Corporation) score, with a minimum of 300 and a maximum score of 850.

7. FACTORS IN FICO HTTP://WWW.CONSUMERISMCOMMENTARY.COM/COMPONEN TS-OF-YOUR-FICO-CREDIT-SCORE/

8. Ultimately, it is the lender who decides to accept your credit application or not!

9. TIERED PRICING Many lenders will use this High credit – low interest rate Low credit – high interest rate

10. GOOD CREDIT CONSISTS OF… 1. Establishing both a checking account and a savings account. 2. Having your telephone and other utilities billed in your name. 3. Requesting, acquiring, and using an oil company credit card.

11. GOOD CREDIT ALSO CONSISTS OF… 4. Applying for a bank credit card 5. Asking a bank for a small, short-term cash loan. 6. Paying off student loans

12. HOW DO YOU GET YOUR CREDIT REPORT? Credit bureaus, if asked, have to give their customers their credit report. You can get one for free each year. Annualcreditreport.com – only truly free website to obtain a credit report. You can actually get a credit report for free every 4 months by going to one of the three main credit bureaus each 4 months and taking turns which one you use. Thoroughly check credit report each time you get it. If there is an error, there is a process once can follow to report it.

13. SOURCES Garman, E. Thomas, & Forgue, Raymond E. (2012). Personal Finance. Mason, Ohio: South-Western, Cengage Learning.