Embed Size (px)
Citation preview
Credit & Specialty Reportsand Credit Scores
Consumer Action created this project with funding from Experian© Consumer Action 2010
Credit & Specialty Reports
• Consumer reporting agencies compile and sell information about you.
• Consumer reports include reports about you made to banks, landlords, and employers.
• Under FCRA and FACTA you have a right to free reports from all CRAs every 12 months.
Credit & Specialty Reports and Credit Scores © Consumer Action
What’s in your credit report?
• Personal information
• Trade lines (mortgage, car loan)
• Delinquent accounts (water bill)
• Public records
• Inquiries
Credit & Specialty Reports and Credit Scores © Consumer Action
ACTIVITY:
Reading and Interpreting a Credit Report
Credit & Specialty Reports and Credit Scores © Consumer Action
Specialty Reports
• The Medical Information Bureau (MIB) compiles and maintains records used by individual life, health, long-term, and disability insurance companies.
• IntelliScript and MedPoint are databases that report prescription drug purchase histories.
Credit & Specialty Reports and Credit Scores © Consumer Action
Residential Tenant Reports
• Residential tenant reports compile residential and tenant history, including evictions. LexisNexis Resident History Report: 877-488-5732 First Advantage Safe Rent: 888-333-2413 Tenant Data: 800-228-1837 RentBureau: 877-704-4519
Credit & Specialty Reports and Credit Scores © Consumer Action
Utilities & Telecommunications Records
• National Consumer Telecom & Utilities Exchange, Inc. (NCTUE) compiles information about new connection requests
and defaulted and/or fraudulent accounts. www.nctue.com 888-201-5643
Credit & Specialty Reports and Credit Scores © Consumer Action
Check Writing History
• Three major companies report on check writing history: ChexSystems, SCAN, and TeleCheck.
ChexSystems phone: 800-428-9623 SCAN phone: 800-262-7771 TeleCheck phone: 800-366-2425
Credit & Specialty Reports and Credit Scores © Consumer Action
Employment Background Check
• LexisNexis Employment History Report (formerly provided by ChoicePoint)
866-312-8075 personalreports.lexisnexis.com
Credit & Specialty Reports and Credit Scores © Consumer Action
Employment Data Reports
• The Work Number maintains information on approximately 25 million employees.
www.theworknumber.com 866-604-6550
Credit & Specialty Reports and Credit Scores © Consumer Action
Insurance Claims Reports
• Insurance claims reports tell insurers about claims you have made against your homeowners or automobile insurance
LexisNexis C.L.U.E. Report: 866-312-8076 Insurance Services Office (ISO) A-Plus
Report: 800-627-3487
Credit & Specialty Reports and Credit Scores © Consumer Action
Comprehensive Report
• LexisNexis Full File Disclosure includes data from a consumer’s specialty reports and public records:
https://personalreports.lexisnexis.com 866-312-8075
Credit & Specialty Reports and Credit Scores © Consumer Action
Your Rights
• Right to a free report every 12 months, after adverse action, or under other limited circumstances
• Right to dispute inaccurate or outdated info
• Right to contact the source of the disputed information directly
• Right to include a statement of explanation
• Right to sue
• Other rights under state law
Credit & Specialty Reports and Credit Scores © Consumer Action
ACTIVITY:
How Much Do You Know About Specialty Reports?
Credit & Specialty Reports and Credit Scores © Consumer Action
Credit Scores
• A three-digit number that summarizes the information in your credit report
• There are different scoring models—all result in a slightly different score
• Points are given for many factors, including: payment history available credit and utilization amounts owed length of credit history new credit types of credit used
Credit & Specialty Reports and Credit Scores © Consumer Action
Interpreting Your Credit Score
• Depends on the scoring model used FICO scores are most widely used (common
scale is 300-850) VantageScore uses 501-990 (equivalent to
academic A-F scale)
• May differ among credit bureaus
• All scores should represent close to the same level of lending risk
Credit & Specialty Reports and Credit Scores © Consumer Action
Your FICO Score
Credit & Specialty Reports and Credit Scores © Consumer Action
Your Vantage Score
Credit & Specialty Reports and Credit Scores © Consumer Action
Obtaining Your Scores
• Can buy scores with credit report or separately
• Free score now only if lender shares it Right to free scores under certain
circumstances coming in July 2011
Credit & Specialty Reports and Credit Scores © Consumer Action
Reasons to Improve Your Credit
• Increases chances your applications will be approved
• Makes it possible to achieve important goals
• Reduces the cost of credit (lower interest rates) good credit can save you many thousands of
dollars over time!
Credit & Specialty Reports and Credit Scores © Consumer Action
Financial Cost of Bad Credit
Borrower One Borrower Two
Credit score 695 600
Interest rate 8.138% 15.277%
Monthly payment $785 $870
Total paid $28,260 $31,320
Cost of a low score
$3,060
Credit & Specialty Reports and Credit Scores © Consumer Action
Source: myFICO.com. Scoring is on a scale of 300 to 850.
Cost of a 36-month car loan of $18,000
Preventing Credit Damage from ID Theft
• Anyone with a Social Security number can become a victim of identity theft Check your children’s reports, too
• Check credit reports regularly to spot suspicious activity sooner rather than later
• Flag credit reports for deceased family members so ID theft doesn’t go undetected
• Consider a fraud alert on credit reports if you are or may be an identity theft victim
Credit & Specialty Reports and Credit Scores © Consumer Action
ACTIVITY:
Improving Your Credit Score
Credit & Specialty Reports and Credit Scores © Consumer Action
ACTIVITY:
Check It Out!Reports & Scores Quiz
You can download the game from Consumer Action’s website:
www.consumer-action.org/outreach/articles/consumer_reports_scores_quiz_game/
Credit & Specialty Reports and Credit Scores © Consumer Action
Resources
• Federal Trade Commission (FTC)
• AnnualCreditReport.com
• Privacy Rights Clearinghouse (PRC)
• National Foundation for Credit Counseling (NFCC)
• Association of Independent Consumer Credit Counseling Agencies (AICCCA)
• Identity Theft Resource Center
• Check It Out! Reports & Scores Quiz
• Sally Walker Case Study
Credit & Specialty Reports and Credit Scores © Consumer Action
Congratulations!
You’ve completed
Credit & Specialty Reports and Credit Scores
Consumer Action
Web: www.consumer-action.orgPhone: 415-777-9635 / 213-624-8327Email: [email protected]
Credit & Specialty Reports and Credit Scores © Consumer Action
