This document provides information about credit reports and credit scores. It discusses how inaccurate credit reports can be, listing studies that found 20-79% of reports contain errors. These inaccuracies can significantly impact a person's credit score and interest rates. The document also outlines factors that affect credit scores, such as payment history, credit utilization, length of credit history, and types of credit used. It provides tips for maintaining good credit and improving credit scores.

1. Educating the Consumer
Helping People
Clean up their Credit
and
Repair their
Financial Lives

2. Know Who You’re Dealing With
Annual Income $
Experian
Fines $
$473 Million
TransUnion
$1.0 Billion
Equifax
$1.5 Billion
Source: www.FTC.gov

3. Companies Who Review Your Credit
Banks
Mortgage Lenders
Credit Card Companies
Auto Insurance Companies
Landlords – Rental Agencies
Potential Employers

4. How Inaccurate Are They !
•2002 National Credit
Retailer Assoc.
100%
• -study found
20% of
consumers are
misclassified for
sub-prime loans
79% 2002
•2003 Federal Reserve
Board
70% 2003
50%
• 70% of credit
reports contain
2004
inaccurate
information
•2004 MASSPIRG
• 79% of all credit
20%
reports are
inaccurate
0%
% Inaccurate

5. $ How Much Inaccuracies Cost $
...and your
If your FICO score is: Your interest rate is: monthly
payment is
760-850 5.60% $1,731
700-759 5.80% $1,773
660-699 6.10% $1,828
620-659 6.90% $1,988
580-619 9.30% $2,482
500-579 10.20% $2,694

6. What's a Credit Score ???
Credit score : numerical expression
based on a statistical analysis of a
person's credit files
Creditworthiness : the perceived
likelihood that the person will pay
debts in a timely manner.

7. Know Your Credit Scores
679 – 620
729 – 680
730 – 850
Good
Excellent Fair
Below 500
619 – 500
NO Federal
Poor
Financing

8. What Effects Your Credit Score?
Payment History
10%
Amount Owed
10% 35%
Length of Credit History
15%
New Credit
Types of Credit Used
30%

9. How to Read Your Credit Report
The 4 Negative
Trade Lines
Sections Trade Lines
of a Credit
Report:
-----Bankruptcy
Public
Collections -----Tax Liens
Records -----Judgments

10. LIFE HAPPENS… It’s Not your Fault!
Lack of Consumer Knowledge
•
June 19th, 2007 U.S. House of Representatives
Committee on Financial Services
Divorce
•
Loss of job
•
Illness
•
Mistakes made by Creditors
•

11. How to Keep Good Credit
 Pay all bills TIMELY –
NOT ON the Due Date
 Keep old accounts OPEN
 Limit your credit to Mortgages, Auto Loans
and a few MAJOR Credit Cards
 Resist opening new Credit Cards for the
10% discount at Department Stores

12. How to Increase Your Credit Scores
 Dispute ALL negative trade lines to make the
bureaus prove accuracy.
 Obtained a Secured Credit Card – Use Responsibly
 Request HELOCS to be reported as mortgages
instead of revolving accounts.
 Open revolving business accounts and transfer
personal balances to them
 Credit Cards BELOW 40% of available credit limit
40%

13. Credit Score Myths
 Having multiple credit cards will improve
your credit
 Closing accounts will raise your scores
 Paying off collections always raises scores

14. Hire a Professional For Best Results
Call for a FREE Credit Review
STOP overpaying on:
Mortgages, Car Loans, Credit Cards, Insurance
LOWER your interest rates NOW!

15. Credit Reporting Agencies
• TRANS UNION
PO BOX 4000
CHESTER, PA 19016
866-877-2673
www.transunion.com
• EQUIFAX CREDIT
PO BOX 740241
ATLANTA, GA 30374
www.equifax.com
• EXPERIAN
PO BOX 2002
ALLEN, TX 75013
www.experian.com
Helping YOU Protect Your Credit Rights