keeping an i on your credit report

KEEPING AN “I” ON YOUR CREDIT REPORT

(I DENTIFY, I NTERPRET, I MPLEMENT)

MARK MCKENNA

TRESSA HADERLIE

Before beginning this instruction, please take this short survey... just to make sure this instruction is for you. (We wouldn’t want to waste your time or this paper!) Answer as honestly as you can. The purpose is for you to be able to determine how much you can benefit from this instruction.

1. Do you have any credit? Circle one.

Yes or No

2. How much (on a scale of 1 to 5) do you know about your credit history? 1. Nothing (“What do you mean by ‘credit history?’”) 2. A little bit (“I have credit but I don’t know much about it.”)3. So-so4. A lot (“I pretty much know whether my credit history is good or bad.”5. A lot (“I know exactly whether my credit history is good or bad. I know my credit score and I know whether my financial actions will hurt or help me.”)

3. Have you ever taken out a loan? Circle one.

Yes or No

4. Have you ever pulled your credit report? Circle one.

Yes or No

5. What is an open account?a. An account that consists of overdue paymentsb. An account that is available to more than one person.c. An account that is active and still being used.d. A mortgage or equivalent homeowner loan

6. What is the best term that describes an account that is a fixed agreement to which a person makes regular payments?

a. collection accountb. installment accountc. derogatory accountd. revolving account

7. What is a credit inquiry?a. The act by which an entity requests your personal credit informationb. An awkward question a friend asks you at a partyc. The total amount of debt you owe for your open and closed accountsd. An unknown credit account category

8. Do you know anyone who has ever had problems with their credit? Circle one.

Yes or No

9. Which of these statements most accurately describes your comfort level in analyzing a credit report? a. “I have never seen one before and I’m scared to look.” b. “I haven’t seen one but I’m not scared to look.”c. “I have seen one but I don’t know what it means.”d. “I have seen a credit report and am familiar with what’s in it.”e. “I have looked at several credit reports and I know what to look for.”

__________________________________Check Yourself:This questionnaire is designed to help you know whether this instruction will help you in your present credit situation. Check over your answers and read the commentary that goes along with each.

1. If you answered “No” then you probably do not need to participate in this instruction.

2. If you put a “5” on this question then you do not need to take this instruction. Otherwise there is a good chance you will gain some useful skills from this instruction.

3. If you circled “Yes,” that’s great! Loans are a big part of your credit report and it’s important to know the information on the report that corresponds to your loans. If you circled “No,” you can probably still benefit from this instruction granted you have another form of credit.

4. It doesn’t matter what you circled on this one. Whether you’ve seen your credit report or not, this instruction can inform you about the important parts of your report.

5. The correct answer is “C.” If you missed this answer then get ready because you will learn about this topic later in the instruction.

6. The correct answer is “B.” You will learn more about this topic later as well.

7. The correct answer is “A.” You will learn more about this topic later as well.

8. There are some scary stories out there related to identity theft and credit fraud. It’s also scary to hear about people who have hurt themselves through their own credit management. Whether you have heard about these or not, you will benefit from practicing the strategies presented in this instruction.

9. Unless you answered “E,” chances are this instruction will be useful to you.

Based on this questionnaire you can determine for yourself whether you want to continue with

the rest of this instruction. Credit reports are an extremely important part of managing our

finances. If you’ve decided to continue with the instruction, then get ready! You are about to

become a credit-analyzing, report-pulling, full-fledged responsible credit holder.

This will take about an hour to complete. When you answer questions, fill in all the blanks

because we want to see your results.

When you are done with this instruction you will have the skills and resources to analyze

your own credit report. Specifically, you will be able to:

effectively “navigate” your credit report by identifying the major sections,

define the big, scary words scattered throughout your credit report,

accurately compare and contrast your own information with the information on

your credit report in order to detect possible identity fraud and to maintain

accurate information for when an organization inquires about your credit,

follow a simple checklist that will guide you as you responsibly analyze your

credit report each year.

In other words, you will be able to keep an “I” on your credit report; you will be able to

identify the important sections, interpret the complicated information, and implement effective

strategies for responsibly maintaining your credit report.

The nice thing about this instruction is that you will be able to keep it. You can reference back

to it (three times a year, if you want!) as you analyze your own credit report.

PART 1: IDENTIFY

MAJOR SECTIONS OF A CREDIT REPORT:

One of the first steps in analyzing your credit report is to understand the major sections of

the report. It is a good idea to have the “big picture” in mind when looking at your credit report.

This can make it much less overwhelming. Your task when analyzing your credit report is to

make it as simplified as possible, so you don’t get lost in the abyss of data and big words.

You do not need to worry about understanding what all these sections mean. You will

learn this in the next phase of the instruction. For now, you only need to be able to spot them

when looking at a real credit report.

Credit reports are organized in many different ways, but they usually contain the

following sections:

PRACTICE ACTIVITY:

Take a look at the attached sample credit report. Glance through the sample report and identify

the major sections, which are in BLUE (just like in the section outline above).

Write the number from the section outline in the blank (________) next to the section on the

sample credit report. (There may be certain sections on the sample report that are repeated. You

can write the number more than one time on the sample report, just so you know.)

Section Outline:1. Personal Information2. Account Information3. Negative Account(s)4. Public Information/ Records5. Inquiries

Equifax Credit Report ™ for Jane DoeAs of: 10/14/11

Confirmation #: 1938378746

___Mortgage Accounts

Account Name Account NumberDate Opened

BalanceDate Reported

Past Due

StatusCredit Limit

METLIFE HOME LOANS

483001364XXXX 07/2010 $64,556 10/2011 PAYS AS AGREED

METLIFE HOME LOANS4000 Horizon WayIrving, TX-750632260(214) 441-4575

Account Number: 483001364XXXX Status: PAYS AS AGREED

Account Owner: Joint Account High Credit: $67,000

Type of Account : Mortgage Credit Limit:

Term Duration: 20 Years Terms Frequency: Monthly (due every month)

___Installment AccountsOpen Accounts



Past Due

StatusCredit Limit

FED LOAN SERVICING

8778336403FD0XXXX 08/2011 $4,250 09/2011 $0PAYS AS AGREED

AES/FED LOAN SERVICINGPO Box 69184Harrisburg, PA-171069184(800) 699-2908

Account Number: 8778336403FD0XXXX Status: PAYS AS AGREED

Account Owner: Individual Account. High Credit: $4,250

Type of Account: Installment Credit Limit:

Comments: Student loan - payment deferred81-Month Payment History

Closed Accounts

Account Name Account Number Date Opened Balance Date ReportedPast Due

StatusCredit Limit

USU CHARTER FCUN

899943XXXX 12/2006 $0 08/2011PAYS AS AGREED

USU COMMUNITY CREDIT UNIONPO Box 446Logan, UT-843230446(801) 753-4080


Account Owner: Joint Account High Credit: $8,881

Type of Account: Installment Credit Limit:

Term Duration: 36 Months Terms Frequency:Monthly (due every month)

Date Closed: 06/2009 Type of Loan: Auto

___Revolving AccountsOpen Accounts



Past Due

StatusCredit Limit

CAPITAL ONE BANK USA


$500

CAPITAL ONEPO Box 30281Salt Lake City, UT-841300281


Account Owner: Individual Account. High Credit: $419

Type of Account: Revolving Credit Limit: $500

Date Closed: Type of Loan: Credit Card

WELLS FARGO CARD SER


$8,000



Past Due

StatusCredit Limit

WELLS FARGO CARD SERVICESCrdt Bureau Dispute ResolutionPO Box 14517Des Moines, IA-503063517(800) 642-4720


Account Owner: Individual Account. High Credit: $3,984

Type of Account: Revolving Credit Limit: $8,000

Date Closed: Type of Loan: Credit Card

WFNNB/MAURICES 851796XXXX 01/2009 $0 12/2010PAYS AS AGREED

$1,000

WFNNB/MAURICESPO Box 182789Columbus, OH-432182789


Account Owner: Individual Account. High Credit: $42

Type of Account: Revolving Credit Limit: $1,000

Date Closed: Type of Loan: Charge Account

___InquiriesA request for your credit history is called an inquiry.Inquiries remain on your credit report for two years. There are two types of inquires those that may impact your credit rating and those that do not.Inquiries that do not impact your credit rating These inquires include requests from employers, companies making promotional offers and your own requests to check your credit. These inquiries are only viewable by you.

Company Information Date of Inquiry

PRM-AMERICAN EXPRESS08/29/11, 08/01/11, 07/25/11, 06/08/11, 04/25/11, 03/29/11, 02/10/11, 01/18/11, 12/21/10, 11/16/10, 10/21/10

PRM-AT&T WIRELESS 05/27/11

AR-CAPITAL ONE 09/06/11

___Negative Accounts

Accounts that contain a negative account status. Accounts not paid as agreed generally remain on your credit file for 7 years from the date the account first became past due leading to the current not paid status. Late Payment History generally remains on your credit file for 7 years from the date of the late payment.You have 2 negative account(s) on file

CollectionsA collection is an account that has been turned over to a collection agency by one of your creditors because they believe the account has not been paid as agreed.You have no Collections on file

___Public RecordsPublic record information includes bankruptcies, liens or judgments and comes from federal, state or county court records.You have no Public Records on file

___Personal InformationName: Jane Doe Social Security Number: XXX-XX-1234Age or Date of Birth: November 16, 1979

Address Information

Current/ PreviousStreetCity,State Zip

Date Reported

Current1564 N 300 WLOGAN, UT 84341

Other IdentificationYou have no other identification on file.

Employment HistoryYou have no Employment History on file.

__________________________________Check Yourself:

Now you can check your answers:

2. Mortgage Accounts2. Installment Accounts2. Revolving Accounts5. Inquiries3. Negative Accounts4. Public Records1. Personal Information

How did you do?

Being able to identify these sections is an important first step in analyzing your credit report. If

you incorrectly identified any of the sections, DON’T WORRY! It will make even more sense

after you complete the next section that covers the terminology used in the credit report.

TERMINOLOGY:

Credit reports are full of terms and wording that can be a little daunting at first glance. But now that we’ve identified the different sections, picking out the terms and learning their definitions won’t be too difficult.

Some of the first few terms that you have already encountered while you were identifying the main sections in a credit report earlier were types of accounts. Let’s look at these definitions:__________________________________

Mortgage A loan designed to facilitate the purchase of a home, in which the home itself serves as security for the loan.

Installment Account A credit account in which the amount of the payment and the number of payments are predetermined or fixed. Common examples of installment accounts are car loans and student loans.

Revolving Account An account that requires at least a specified minimum payment each month plus a service charge on the balance. Revolving accounts would be credit cards.__________________________________

Every account that you will have listed on your credit report will be one of these three types. This is good to know because if you ever see an error or unfamiliar account you’ll want to identify what kind of account you’re dealing with.

Under each of these types of accounts, you’ll see the following information presented in the details for the account:

Company Name - identifies the company that is reporting the information. Account Number - lists your account number with the company. Whose Account - Indicates who is responsible for the account and the type of

participation you have with the account. Abbreviations may vary depending on the reporting agency but here are some of the most common:

o I - Individualo U - Undesignatedo J - Jointo A - Authorized User

o T - Terminatedo C - Co-maker/Co-signero S – Shared

Date Opened - This is the month and year you opened the account with the credit grantor.

Months Reviewed - Lists the number of months the account history has been reported. Last Activity - Indicates the date of the last activity on the account. This may be the date

of your last payment or last charge. High Credit - Represents the highest amount charged or the credit limit. If the account is

an installment loan, the original loan amount will be listed. Terms - For installment loans, the number of installments may be listed or the amount of

the monthly payments. For revolving accounts, this column is often left blank. Balance - Indicates the amount owed on the account at the time it was reported. Past Due - This column lists any amount past due at the time the information was

reported. Status - A combination of letters and numbers are used to indicate the type of account of

the timeliness of payment.Abbreviations for the status of account are as follows:

o O - Openo R - Revolvingo I - Installment o Abbreviations for Timeliness of Payment varies among agencies. Numbers are

used to represent how current you are in your payments. Current or paid as agreed is usually represented by 0 or 1. Larger numbers (up to 9) indicate that an account is past due.

Date Reported - Indicates the last time information on this account was updated by your creditor.

__________________________________

Some other terms you’ll need to be familiar with are involved with inquiries. One of the sections you identified at the beginning of this instruction was the inquiry instruction. Within this section, you’ll have two areas:

Hard InquiryAn indication on a credit file that a lender has obtained a copy of the report in order to evaluate the consumer's loan or credit application. An excess of hard inquiries within a six-month period may lower a consumer's credit rating.

Soft Inquiry (Also known as a promotional inquiry)An instance in which a credit report is accessed without affecting a consumer's credit rating. Soft inquiries include a consumer's request for his/her credit report; promotional inquiries by credit card companies; and account review inquires by a consumer's existing creditors.__________________________________

When looking at your credit report, you may have a long list of inquiries. Don’t worry! There are a lot of credit card companies and creditors who perform soft inquiries on your report but remember that those inquiries won’t affect your overall credit rating. When you get those pesky credit card offers in the mail all the time, those companies have performed a “soft inquiry” on your credit already to see if they want to offer you credit.

What you need to look for are the hard inquiries. These would be made only at your request. For example: when applying for a loan or renting an apartment. Make sure that anything listed under “hard inquires” are things that you instigated. There would be a bank or agency listed that would look familiar to you.__________________________________

Provided in this packet is a large list of words and terms commonly found in a credit report that you can use as a reference in the future when you get stuck on certain terms. Take a look at these last few words that may or may not be familiar before we test your knowledge.

Active AccountAn account for which activity has been reported to a credit reporting company in the last 90 days.Closed AccountAn inactive credit account; an account that can no longer be used for credit. An account may be closed by the consumer or closed by the credit grantor.Credit Limit The highest amount that a credit grantor allows to be charged on the account.Credit ScoreA numerical score compiled based upon variables in a consumer's credit file that is indicative of the consumer's creditworthiness. It shows an estimation of the likelihood a consumer will meet debt obligations. A creditor obtains information from a credit reporting company and applies a credit score model to calculate a consumer's credit score.Creditworthiness The ability of a consumer to receive favorable consideration and approval for the use of credit from an establishment to which they applied.Secured Loan A loan for which an item of property has been pledged in case of default. A mortgage is an example of a secured loan.

PRACTICE ACTIVITY:

1. From the following list of words and definitions, match them together by putting the letter for

the definition next to the correct word.

Credit Limit _____ Mortgage _____

Hard Inquiry _____ Secured Loan _____

High Credit _____ Soft Inquiry _____

Active Account _____ Revolving Account _____

Installment Account _____ Creditworthiness _____

A. Represents the highest amount charged or the credit limit. If the account is an installment loan, the original loan amount will be listed.

B. A loan for which an item of property has been pledged in case of default. A mortgage is an example of a secured loan.

C. An account for which activity has been reported to a credit reporting company in the last 90 days.

D. A loan designed to facilitate the purchase of a home, in which the home itself serves as security for the loan.

E. An instance in which a credit report is accessed without affecting a consumer's credit rating. These inquiries include a consumer's request for his/her credit report; promotional inquiries by credit card companies; and account review inquires by a consumer's existing creditors.

F. A credit account in which the amount of the payment and the number of payments are predetermined or fixed.

G. An account that requires at least a specified minimum payment each month plus a service charge on the balance.

H. The highest amount that a credit grantor allows to be charged on the account.

I. The ability of a consumer to receive favorable consideration and approval for the use of credit from an establishment to which they applied.

J. An indication on a credit file that a lender has obtained a copy of the report in order to evaluate the consumer's loan or credit application. An excess of these inquiries within a six-month period may lower a consumer's credit rating.

2. In your own words, describe what an installment account is.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

3. A credit card would be considered what type of account?

a. revolvingb. installmentc. mortgage

4. A credit card company requests access to your credit report in order to pre-approve you for a credit card offer that will be sent to you in the mail. Is this an example of a soft inquiry or a hard inquiry?

a. Softb. Hard

__________________________________Check Yourself:

Now you can check your answers.

Credit Limit __H__

Hard Inquiry __J___

High Credit __A__

Active Account __C___

Installment Account __F___

Late Payment __D___

Secured Loan __B___

Soft Inquiry __E___

Revolving Account __G___

Creditworthiness __I___

2.

3. A. Since a credit card doesn’t have a fixed payment amount each period (payment amounts vary depending on the amount charged to the card), it is a revolving account.

4. A. This type of request was not initiated by the consumer; it was done by an outside company for a pre-approval. This would not affect your credit in any way and is considered a “soft inquiry.”

Even though you understand these terms, a credit report might still be a little confusing at first glance. However, once you’ve identified the different sections and know what all of the different terms mean, reading a credit report is a lot simpler.

Something to remember: the three credit reporting bureaus may use slightly different terms and organization in their reports. However, most of it is the same and once you’ve become familiar with what you’re looking for, the slightly different terms won’t throw you off.

Take a look at some real examples from a credit report and see where these terms are actually used.

EXAMPLE 1:

1. When you see the example above on your credit report, you know that it is a soft / hard inquiry. (circle one)

2. This list may be much longer. Do you need to be worried about these inquiries bringing down your creditworthiness? Yes / No

__________________________________Check Yourself:

1. Soft.

2. No

Inquiries that don’t affect your credit rating are “soft inquiries.” A hard inquiry would be something like an loan approval check from a bank for an auto loan or mortgage. It would usually be something you, as the consumer, instigate.

EXAMPLE 2:

1. What type of account is this?

a. Revolvingb. Mortgagec. Installment

2. In your own words, describe how you know what type of account this is.

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

3. Would this be considered secured or unsecured debt? ____________________

4. Is this account active or closed? ________________

__________________________________Check Yourself:

1. Installment

3. Secured

4. Closed

PART 2: INTERPRET

CHECKING INFORMATION ON YOUR CREDIT REPORT:

It’s a good feeling to be able to look at your credit report and understand the financial terms that are splattered across the pages. However, you may be wondering at this point of the instruction,

“Why is it so important, then, that I request a copy of my credit report?”

Here’s the rhyme and reason: to look for inaccuracies. Mistakes are not entirely uncommon on credit reports. Sometimes they’re caused by simple human error, other times they occur when credit files of people with similar names are inadvertently mixed. Unfamiliar or inaccurate information can also be an indicator of identity fraud – when someone uses your name and accounts without your knowledge. Look closely at the following areas to catch mistakes or fraud:

Personal information. Are the names and addresses listed on your report accurate? Often, an incorrect address or unfamiliar suffix, such as Jr. or Sr., can be an indication that your file may have been mixed with that of another person. Additionally, a recent address change may indicate that someone is fraudulently opening accounts in your name, but routing the bills to their address.

Accounts. You will notice basic information such as your credit limit, current balance and date the account was opened. Also check out the detailed payment information by month for incorrect late payments or charge-offs. Remember to check for unfamiliar accounts or activity on accounts that you thought were closed. Someone besides you could be using the account.

Public records. If any bankruptcies, judgments or liens are listed in this section, make sure they are accurate and complete. Remember, some bankruptcies can stay on your report for up to 10 years while others cycle off after seven years.

Inquiries. This section shows you who has received information from your credit report and who was given your name during the recent past, as allowed by law. Often credit grantors will "pre-screen" your credit file in order to offer you special rates. Inquiries are also recorded when you apply for new credit or authorize an employer or insurance company to check your credit history.

What if everything looks okay?If everything looks accurate, then you can breathe easy. Just remember to regularly monitor your credit to make sure everything stays accurate.

What if I find something wrong?

If you find a mistake you can dispute the information free of charge. Contact the credit bureau that provided the information and dispute the inaccurate information. You can also contact the creditor and ask them to provide new, accurate information to the credit bureau.

Note: If you suspect fraud, contact the credit bureaus immediately and place a fraud alert on your report. Then contact your credit card companies and bank to protect your accounts.

PRACTICE ACTIVITY:

Here are a few examples to practice checking for inaccuracies.

Example 1:

Let’s say you only have 2 credit accounts: a house loan and a credit card. Take a look at this account summary and identify a possible red flag.

What is the red flag and what is a possible action you can take to figure out the situation?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

__________________________________Check Yourself:

A house loan is a mortgage account. A credit card is an example of a revolving account. Your credit summary shows these two accounts, but also includes an unrecognizable installment account of $4,250. Where did that come from?! This is slightly worrisome. If you verify that you never opened this account (for example, if the installment account section of your report lists a creditor that you really do not recognize), you should dispute the information and contact the credit bureau immediately. It’s possible that someone else opened that account under your name. (FRAUD!)

Example 2:

While analyzing this account on your credit report, you are surprised to see a 60-day late advisory from June 2009.

You decide to compare this with your account statement from this same month and year.

Is there a discrepancy? (Circle One)

Yes or No

__________________________________Check Yourself:

Yes, there is a discrepancy between your account information and your credit report. Your account statement shows that you paid off your entire balance in May. No 60-day advisory should have existed for June. Late payments can affect your credit score, so you should take some action to deal with this mistake.

What would be the best action to take?

a. Max out all your credit cards in a shopping frenzy because all hope is lost.

b. Call up your bank and tell them firmly that you want accurate reporting.

c. Contact the credit bureau and dispute the information free of charge.

__________________________________Check Yourself:

Hope is not lost! So even though maxing out your credit cards could be pretty fun (in the short term), it’s not a very good idea. It’s also likely that your bank did not make any mistakes in the record keeping of your accounts. The best answer is “c.” You can dispute any mistakes free of charge by contacting the credit bureau. Contact information for the bureau is located usually at the very end of the credit report.

PART 4: IMPLEMENT

PROPER MAINTENANCE OF CREDIT REPORT:

Now that we’ve covered everything about identifying and interpreting a credit report. Let’s look at why it’s important to have good credit and how we can improve our credit if it’s not as good we want it to be. First off:

Why is it important to have good credit?Good credit can help you:

Buy a home or finance a car Get a job or qualify for insurance Set up utility accounts Borrow money Buy “big ticket” items Obtain a credit card

How do you improve your credit?Although creditors regularly report information to the credit reporting agencies, there is no quick fix for a low credit score. Your score will improve gradually if you pay your creditors on time and improve the way you handle credit. As they age, reported credit problems affect your score less and less - so your score may improve over time.

Make good credit a top priority. Use credit responsibly. Pay your bills on time. Only borrow amounts you can comfortably repay. Make up any past-due payments and stay current.

How do you get your credit report?Under federal law, every year you can get a free copy of your credit report from each of the three biggest companies that provide credit reports. You can order your report by phone at 877-322-8228 or online at www.annualcreditreport.com.

http://www.annualcreditreport.com/

PRACTICE ACTIVITY:

Write down three actions that you will take in the next month as a result of this instruction. Hopefully they are the three most important things that you will do in order to be responsible about maintaining your credit report. These might include a specific action that will help one of your credit accounts or a commitment to request your three credit reports.

1.__________________________________________________

2.__________________________________________________

3.__________________________________________________

CREDIT REPORT CHECKLIST:

Remember, it’s important to keep track of your credit. You can pull your credit report three times a year (once from each credit bureau). It’s best to space these out every four months and make it a habit to regularly look over your credit report. When you pull your report, remember this instruction and the steps we’ve gone over. Below is a checklist that you can use to help guide you through your report:

____Identify the major sections of the report so you’re familiar with how the contents are laid out and what information has been included in your report.

____Look for familiar words and remember to use the list of terms included in this packet to look up any words or terms that aren’t familiar to you.

____Compare and contrast personal information with the personal information section on a credit report to identify any errors.

____Compare and contrast account statement information with the account information section on a credit report to identify any errors.

____Determine what areas of your credit history are positive and negative.

____Determine what changes can be made to improve the quality of your overall credit and apply them in your life.

This checklist is a summary of the instruction that you have nearly completed. Each step corresponds with a section from the instruction. You will be able to reference back to the instruction when you analyze your own credit report using this checklist.

Practice completing this checklist using the attached sample credit report. You have already seen quite a bit of information from this credit report and have even completed parts of the checklist using information from it. Now you get to put it all together to analyze your credit report.

And if you think analyzing the sample credit report is exciting,

just wait until you get to analyze your very own!

Congratulations on having just participated in several activities that will help you effectively analyze your credit report. Remember that you get to keep this instructional packet. Reference it whenever you need to.

Hopefully by now you are feeling the confidence that comes from keeping an “I” on your credit report!

POST-TEST (to be completed at the end of the instruction without the use of reference material)

1. Why is it important to analyze your credit report? ______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

2. How frequently can you request your credit report? a. as many times as you would likeb. three times a year from each of the major credit bureausc. once a year from each of the major credit bureausd. four times a year

3. A section of a credit report contains the following information:

Company Information Date

PRM-AMERICAN EXPRESS08/29/11, 08/01/11, 07/25/11, 06/08/11, 04/25/11, 03/29/11, 02/10/11, 01/18/11, 12/21/10, 11/16/10, 10/21/10

PRM-AT&T WIRELESS 05/27/11

AR-CAPITAL ONE 09/06/11

This is most likely an excerpt from which section of the credit report? a. personal informationb. soft inquiriesc. revolving accountsd. public records

4. While analyzing your credit report, you notice an account you do not recognize. It shows many late payments and you are sure you did not open this account. What should you do? (circle one)

a. tear up your credit report and move to another countryb. nothing- credit reports many times contain inaccuracies that are harmlessc. contact the credit bureau and put a fraud alert on your reportd. open a new account under the same organization

5. What is one of the benefits of having good credit?a. It can increase your chances of winning the lottery.b. It can help you get a better interest rate on a car loan.c. It can increase your chances of getting a job.d. It can offer you the opportunity to purchase airline tickets at a lower cost.e. A and Bf. B and Cg. C and D

6. Here is the personal information section of a credit report:

Personal InformationName: Jane Doe Social Security Number: XXX-XX-1234Age or Date of Birth: November 16, 1979Address Information

Current/ PreviousStreetCity,State Zip

Date Reported

Current 1564 N. 300 W. Logan, Utah 84341

Circle the bullet that contains information that does not match with the information on the credit report:

I am Jane Doe. My social security number is XXX-XX-1234. My birth date is November 16, 1979. I live on 1644 North 300 West in Logan, Utah (84341).

7. What is the definition of a hard inquiry? a. An indication on a credit file that a lender has obtained a copy of the report in order to

evaluate the consumer's loan or credit application. An excess of these inquiries within a six-month period may lower a consumer's credit rating.

b. A loan for which an item of property has been pledged in case of defaultc. The ability of a consumer to receive favorable consideration and approval for the use

of credit from an establishment to which they appliedd. An account for which activity has been reported to a credit reporting company in the

last 90 days

8. You set up a loan to purchase a home entertainment system. You are required to pay a minimum of $180 each month for 13 months. This is an example of what type of account:

a. revolving accountb. home purchase accountc. public record accountd. installment account

9. What are the 3 “I’s” that will assist you in keeping an “I” on your credit report?a. Interest, Investigation, Independenceb. Identify, Interpret, Implementc. Interrupt, Illegalize, Intercept

10. What is the most valuable thing you learned from this instruction?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

keeping an i on your credit report

Documents

american express

receive favorable

major credit

company information

account review

credit card

original loan

credit reporting