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2.6.1.L1

CreditReportsandScoresNoteTakingGuide

TotalPointsEarned

Max Hollis

10/30/2014

PF B2

Name

TotalPointsPossible

Percentage

Date

Class

Alenderis:

Aborroweris:

Acredithistoryis:

Record of the
borrowers past
loan and
credit-related
transactions

Person or
organization
who makes
funds available
for others to
borrow

Someone who
receives
something with
the promise to
return it or to
repay what is
borrowed

Acreditreportis:

Record,
created by a
CRA, of an
individuals
credit history

Howarecreditreportscreated?
Lender: Reports a consumers
account history to CRAs
Credit Report Agencies: Keep a record of a consumers
account history (credit history)

Whatarethenamesofthethreecreditreporting
agencies?

- Equifax
- Experian
- TransUnion

Whatarethreeexamplesofpersonalinformationonacreditreport?

Name, phone number, current and previous street

addresses

Whatarethetypes
ofcreditaccount
information?

Type of Credit

Loan Amount/Credit Limit

Date

Account Balance

Payment
Information

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2.6.1.L1

TypesofCredit

Closedend

OpenEnd

Alsoknownas:

Definition

Installment

Revolving

Example

Borrower must repay

the amount in a
specified number of
equal payments

Automobile loans
Education loans
Mortgages

Extended as a line
of credit established
in advance

Credit cards

Placethefollowingsymbols
oneachsectionofSams
ElectronicWorldAccount
describedbythe
correspondingtypeof
information.
Typeofcredit
Loanamount/creditlimit
Dateaccountwas
opened
Accountbalance
Paymentinformation

SAMSELECTRONICWORLD
Address:AccountNumber:
123MAINSTREET3624****
ANYWHERE,AZ00000
Status:Open/Pastdue60days.
DateOpened:
CHECK
02/2009
ReportedSince:
02/2010
DateofStatus:
10/2012
LastReported:
10/2012

Type:
BOX
Revolving
Terms:
N/A
MonthlyPayment:
$0 DOT
Responsibility:
INDIVIDUAL
DOT

CreditLimit/OriginalAmount:
$500:)
HighBalance:
$550
RecentBalance:
STAR
$84asof11/2012
RecentPayment:
$0 DOT

AccountHistory:
60daysasof102012
30daysasof092012

Whattypesofpublicrecordinformationmaybeinacreditreport?

records such as tax liens, foreclosure,

Information from federal, state, and county public court

bankruptcy, and information from collection agencies.

Whenareinquiriespotentiallynegative?
Seeking additional credit. Impact is reduced if
of loan within a
shopping for the same type
14-day period.

Whendoinquiriestypicallyhavenoimpact?
Inquiries not initiated by you, inquiries not related to credit,

and Checking your own report

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2.6.1.L1

Examplesoflenders:

Whendolendersreport?

Lenders usually report all

information, positive and negative

Depository institutions, credit card

companies, retail stories that offer
credit accounts, and mortgage
and finance companies.
WhoreportstoCRA's?
Examplesofdatafurnishers:

Whendodatafurnishersreport?

Landlords, cell phone companies, utility

accounts, and medical providers

Typically only report when money is

owed to them

5examplesof
informationnot in
acreditreport

Buying
Habits

Race and
Gender

Religion and
Nationality

Non-credit
depository
institution accounts

Criminal
Background

Whyistimetheonlywaytoremovenegativeinformationfromacreditreport?

Need time to prove that you can pay off your credit and debts, have to show a pattern.

Whatisacredit
score?

Whatinformationis
includedinacredit
score?

Mathematical number
created to help a lender
evaluate the risk
associated with lending a
consumer money

Who,most
commonly,produces
scores?

FICO
VantageScore

Whatarethescore
rangesofthetwo
mostcommon
systems?

300-850
501-990

Acreditscorereflects
aparticular...

Whatdoesascore
indicateabouta
consumer?

Reflects
information in the
entire credit report

The reliability of a
consumer paying
off their debts

Ahigherscore
typicallymeanswhat?

Doesaconsumerhave
oneormultiple
scores?

Higher chance of
credit repayment

Multiple

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2.6.1.L1

Inadditiontoaccesstocredit,whataretwootherwaysanindividualscredithistorymayimpactthem?

Affect
insurance rates and employment

Credit card with a co-signer

Set up automatic payments

5strategiesto
buildapositive
credithistory
include:

Small closed-end loans from a depository institution

Credit cards that require a cash security deposit

Authorized use on a credit card

Whataretwostrategiestoacquireandpositivelymanagesmalllines

ofcredit?

Secured credit card and credit card with a co-signer

Howoftencana
freecreditreportbe
requested?

One free credit

report annually

Whatistheonly
government
sponoredwebsite?

AnnualCreditRe
port.com

Howisacosignerimpacted?

co-signer is equally

responsible for payments

Howarecredit
scoresaccessed?

Through credit
reporting
agencies

Ifanerrorisfound,
aconsumershould:

Contact the
CRA &
company that
provided the
incorrect
information.

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