CCFE - Credit Reports and Scores

what is credit history

record of borrowers past loans and credit transactions

what is a credit report

the record of your credit use, includes credit history

what are credit reporting agencies and what can’t they decide

create credit reports based on the information they receive from lenders regarding your history with them, do not decide whether to grant you credit, the agencies only collect info

what are the four categories of credit report info

Consumer info, Credit account info, Public record info, Inquiry info

what is utilization

debt / credit limit, the amount of credit you are currently using to your total available credit

what is consumer info

info you provided to lenders when applying for credit

what is credit account info

largest section of credit reports, contains specific info about each credit account

secured v. unsecured card

secured: requires a cash deposit (your credit limit) and is easier to get for bad/no credit, acting as a tool to build credit

unsecured: traditional card with no deposit, based solely on your creditworthiness,

what is public record info

presents info from federal state and county court records

what is inquiry info

inquiries occur when someone requests a copy of your report

which lenders report all info, - and +

depository institutions, credit card companies, etc.

which lenders report only - info

landlords, cell phone companies, utility companies, etc.

how long do inquiries last on credit report

2 years

how long do public records last on credit report

7 years

how long do late or missed payments last on credit report

7 years

how long do closed accounts in good standing last on credit report

10 years

how long do accounts in good standing last on credit report

always

what is a credit score

numerical summary of credit history that indicates likelihood of repaying a loan as agreed

what things can credit history affect

insurance, employment, public utility services, housing

six ways to improve credit score

pay bills consistently and on time, check credit report annually, don’t have many accounts for one type, have a mix of different types of accounts, apply for credit sparingly, maintain reasonable amounts of credit

how do you begin to develop a credit history

be an authorized user on a credit card, obtain small closed end loan form a bank, obtain a secured credit card, obtain a cosigner

when are errors investigated

within 30 days

what percent of credit scores are accounts owned

30%

what percent of credit score is payment history

35%

what percent of credit score is new credit

10%

what percent of credit score is length of credit history

15%

what percent of credit score is credit mix

10%