Solving the Mystery of

Credit Reports

Solving the Mystery of

Credit Reports

© 2005 BALANCE FINANCIAL FITNESS PROGRAM

Credit Bureaus

• 3 major credit bureaus Experian Trans Union Equifax

• Credit information is reported to bureaus• Not all creditors report to all 3• Regulated by Federal Trade Commission

Obtain Your Report

• Through the credit bureaus Fee for report

• Through Annual Credit Report Request Service Centralized service One free a year (more if fraud suspected)

The FCRA

• You must be told if information is used against you

• You may access your own file• You can dispute inaccuracies• Outdated information must be removed• Access to your file is limited

How Long Will It Stay?

• Positive information can remain indefinitely• Negative information 7 years from when first

reported• Chapter 7 bankruptcy reported for 10 years• Collection accounts 7 years from date of

charge-off

Credit Scoring• FICO scores range from 300-850• Score is based on several factors

Amount Owed

30%

35%

Payment History

10%

Types of Credit Used

10%

New Credit

15%Lengthof Credit History

Improve Your Score

• Limit number of open accounts• Pay consistently on time• Do not transfer balances frequently• Keep balance significantly lower than

limit• Repay old delinquencies• Limit number of credit applications made

Correct Inaccuracies

• Write a letter requesting an investigation• Place a dispute on file • Use 100-word statement to explain• Send all mail certified, and keep copies

of everything

Beware Credit Repair!

• Credit repair companies cannot legally do anything you cannot do yourself for free

• Take steps yourself to dispute incorrect or outdated information

Sections of the Report

• Identification - Name, DOB, SS#• Public Records - Bankruptcy, judgment,

liens, arrears• Payment History - Accounts, balances,

date opened• Inquiries - Record of requests for your file

Trade Lines

• Creditor name/partial account number • Date of last activity (DLA)• Date account opened• Payment history (30, 60, 90)• Current balance• Joint/individual account• Current status• Credit limit (sometimes)

Identity Theft

• Preventing fraud Protect your information Shred anything with your account numbers Review credit report Monitor statements carefully

Damage Control

• File police report• Contact credit bureaus• Contact creditors • Contact any other affected organization

DMV, Social Security, financial institutions

• Monitor accounts • Review credit report quarterly

Other Types of Reports

• ChexSystems Used when opening new accounts Tracks returned checks

• National Tenant Network Used by landlords Reports evictions

With a little effort and a lot of awareness, you can have and keep an excellent credit history and a high credit score.

Duke Credit Union Financial Education Center

• Contact:• Scottie Dowdy, CCUFC• Cassandra Taylor• Financial Counselors• Call: 684-6704• www.dukefcu.org