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You and your credit
• Have you ever had:– Credit card?– Loan?– Utilities in your name?– Cell phone with a monthly bill?
• This helps make up your credit history.
What is a credit history?
• How you use money:– Do you pay your bills when they are due?– How many credit cards do you have?– How many loans do you have?
• Your credit history helps make up your credit report.
What is a credit report?
• Summary of your credit history:– Name, address, Social Security number– Your credit cards and loans– How much money you owe– If you pay your bills on time or late
Who creates your credit report?
• Credit reporting companies put your information in a credit report:– TransUnion– Equifax– Experian
Why care about my credit?
• You might find mistakes or problems.– Your information from years ago– Somebody else’s information
• By mistake• On purpose
• You can try to fix mistakes or problems.
Why care about your credit?
• Businesses check your credit when you:– apply for a job– get car or home insurance– apply for a credit card or loan– get a cell phone
How do you get your credit report?
• Only one place to get your free report:– Annual Credit Report
• Call 1-877-322-8228• Go to www.AnnualCreditReport.com
• You get one free report every year from each credit reporting company
You got your report. Now what?
• Read it carefully. – Is it your name and address?– Do you recognize the accounts?– Is the bill-paying information right?– Does it list credit applications? Did you apply for credit at
those places?
Good credit and bad credit
• Good:– You pay bills when they’re due– You don’t owe too much money on your credit cards
• Bad:– You pay bills late– You owe a lot of money on your credit cards
Improving your credit
• You can improve your credit:– Pay your bills by the date they are due.– Lower the amount you owe – especially on credit cards.– Do not get any new credit cards.– Do not close older credit cards.
It takes time!
What is a credit score?
• A number related to your credit history.– If your credit is good, your score will be high.– If your credit is bad, your score will be low.
• Scores go from 300 (low) – 850 (high)• Used when you buy a home or car– To decide whether to give you credit– To decide how much you’ll pay for your credit
Should you know your credit score?
• Your credit history is most important.• But your credit score might be used when you buy a
car or home.• Seeing your credit score costs money.• Is it worth paying for?
One more time…
• Only one place to get your free report:– Annual Credit Report
• Call 1-877-322-8228• Go to www.AnnualCreditReport.com
• You get one free report every year from each credit reporting company
