1. Understanding Credit Reports
Family Economics & Financial Education
Take Charge of Your Finances

2. Credit Report Detectives
Meet Isabella, your new client:
About to graduate from college
In extreme debt
Concerned about finding a job
Doesnt understand her credit report
Your Mission:
Help Isabella understand her credit report, identify
what she did to get into this situation, and decide
whatshe can do to improve her credit report.
3. The Credit Process
Credit when goods, services, and/or money are received in exchange for a promise to pay back a definite sum of money at a future date.
4. Isabellas Story
What is your analysis of her situation?
Does she need your help?
Why?
In small groups:
Read Isabellas Scenario
5. Credit History Reporting
What they do
Additional Information
6. Credit Reporting Agencies
Acquire information from:
7. Information in a Credit Report
Information can be divided into 4 categories:
Personal Information
Accounts Summary
Public record items related to credit
Credit Inquiries
Lenders may or may notreport information to all three credit reporting agencies.
An individuals information may be different in each report.
8. Personal Information
Personal Information
Isabellas Personal Information:
Name and aliases
Current and past addresses
Social security number
Date of birth
Employment history
Name Isabella G. Langley
Addresses 101 Hopeful Ave. & 695 Parent Street
Date of birth 05/04/86
Telephone numbers 555-354-2368 & 555-198-2358
Employers Luckys Restaurant & Janes Daycare
Find Isabellas
Personal
Information
9. Accounts Summary
Accounts Summary
Isabellas Accounts
Types of accounts
Date the account was opened
Credit limit or loan amount
Account balance
Payment history, including missed or late payments
Sams Electronic World
City of Anywhere
U.S. Department of Education
Financial Institution School Loan
Shop Til You Drop Store Credit Card
Love to Read Store Credit Card
The Free Money Credit Card
What Lenders
Does Isabella
Have Accounts
With?
10. Accounts Summary
Does Isabella
Have Any Late or
Missed Payments
on Accounts ?
Isabellas Late or Missed Payments
Sams Electronic World
Past due
Store Credit Card
Occasional late payments
11. Public record items related to credit
Public Record Items
Isabellas Public Record Items
Accounts turned over to collection agencies
Public records
Bankruptcy
Tax liens
Legal suits
Foreclosures
City of Anywhere
In Collection
Identify
Public Record Items
In Isabellas
Report
12. Credit Inquiries
Requests for an individuals credit report
Completed by:
Insurance agencies
Potential credit companies
Financial institutions
Landlords
Potential employers, etc.
What Inquiries
Does Isabella
Have on
Her Report?
13. Credit Inquiries
Individuals should avoid too many hard credit checks at one time!
14. Isabellas Report
15. Medical Information
16. Equal Credit Opportunity Act
Prohibits credit discrimination on the basis of:
Race
Religion
Marital status
Nationality
Gender
Age
Creditors may ask for this information (except religion) in certain situations, but may not use it to discriminate when deciding whether to grant you credit
17. Credit Scores
Mathematical tool created to help a lender evaluate the risk associated with lending a consumer money

Based upon information in the credit report

18. At a particular point in time 19. Numeric grade of a consumers financial reliability 20. Used by lenders to determine a consumers risk of defaulting on a loan