© south-western educational publishing chapter 17 credit records and laws establishing good credit...

© South-Western Educational Publishing

Chapter 17

Credit Records and Laws

Establishing Good CreditCredit Ratings and Legal Protection


GOALSGOALS

Lesson 17.1

Establishing Good Credit

Discuss the importance of credit records and summarize how and why records are compiled.Describe the five Cs of credit.Explain how to get started using credit.


Credit Records

Your credit fileHow information is gathered and usedTypes of information stored


Credit Records

Every person who uses a credit card or takes out a loan begins to establish credit.


Controlyourcredit.gov


How credit scores are used


Credit scores may vary


Important information about credit scores


Credit bureau

Credit history Credit reportSubscribers


Credit report – where?


Free Credit Report

A Warning About "Imposter" Sites

The FTC advises consumers who order their free annual credit reports online to be sure to correctly spell annualcreditreport.com, or link to it from the FTC's website to avoid being misdirected to other websites that offer supposedly free reports, but only with the purchase of other products.


Free Credit Report

While consumers may be offered additional products or services while on the authorized website, they are not required to make a purchase to receive their free annual credit reports.


Credit Monitoring

How to Monitor Your Credit Report


Creditworthiness

CharacterCapacityCapitalConditionsCollateralFive Cs of Credit


Character


Capacity


Capital


Getting Started with Credit

Begin with a savings account.Open a checking account.Open a store credit account.Get a small loan.Apply for a credit card.


GOALSGOALS

Lesson 17.2

Credit Ratings and Legal Protection

Describe credit ratings and a point system for determining creditworthiness.Outline the contents of a credit report.Discuss the protections provided by the major credit laws.


What makes up a credit score?


Payment History


Type of credit in use


New credit


Length of credit history


Debt


Credit Ratings

Excellent credit ratingGood credit rating Fair credit ratingPoor credit rating


The impact of negative information on your credit score

How long do you think late payments stay on your credit report?


Late payments



How long do you think collection accounts and charge-offs stay on your credit report?


Collection accounts and charge-offs



How long do you think bankruptcies stay on your credit report?


Bankruptcies



How long do you think unpaid tax liens stay on your credit report?


Unpaid tax liens


Negative Information


Closing Accounts – can be harmful


Credit Inquiries

Whenever you or someone else accesses your credit report, an inquiry is created.

Some inquiries can hurt your credit score.


Good Inquiry vs. Bad Inquiry


Credit Reports

Summary of informationPublic record informationCredit informationAccount detailRequests for credit historyPersonal information


Inaccurate information

When you find an error

Write to the credit bureau & information providerSend certified mailCredit bureau has 30 days to respond


Credit repair

Fixing Credit Card Errors


Credit Laws

Consumer Credit Protection ActFair Credit Reporting ActFair Credit Billing ActEqual Credit Opportunity ActFair Debt Collection Practices Act


Missed car payments


Fair Debt Collection Practices


Parts of a credit report

a credit report

THANK YO U F O R B A N K I N G WITH Your First BankPlease address all futurecorrespondence to:Credit Reporting AgencyBusiness AddressCity, State 00000

PERSONAL IDENTIFICATION INFORMATION Your Name123 Current AddressCity, State 00000

Previous Address(es)456 Former Rd. Atlanta, GA 30000P.O. Box XXXX Savannah, GA 40000

Social Security #: 123-45-6789Date of Birth: April 10th, 1940

Last Reported Employment:Engineer, Highway Planning


PUBLIC RECORD INFORMATION

Lien Filed 03/93; Fulton CTY; Case or Other ID Number-32114; Amount-$26,667Class-State; Released 07/93; Verified 07/93

Bankruptcy Filed 12/92; Northern District Ct; Case or Other ID Number-673HC12;Liabilities-$15,787; Personal; Individual; Discharged; Assets-$780

Satisfied Judgement Filed 07/94; Fulton CTY; Case or Other ID Number-898872; Defendant-Consumer; Amount-$8,984; Plaintiff-ABC Real Estate; Satisfied 03/95; Verified 05/95


Collection agency info

COLLECTION AGENCY ACCOUNT INFORMATION

Pro Coll (800)XXX-XXXXCollection Reported 05/96; Assigned 09/93 to Pro Coll (800)XXX-XXXX Client-ABCHospital; Amount-$978; Unpaid; Balance $978; Date of Last Activity 09/93; IndividualAccount; Account Number 787652JC

© south-western educational publishing chapter 17 credit records and laws establishing good credit...

Documents

credit scores slide

cs of credit slide

good credit credit ratings

credit card

credit file

use slide

importance of credit

store credit account