Page | 15 2.6.1.L1 Credit Reports and Scores Note Taking Guide Total Points Earned Name
Total Points Possible Date
Percentage Class
A borrower is:
Someone who
receives
something with a
promise to
return it or it's
equivalent
A lender is:
a person or
organization
who makes
funds available
tor others to
borrow
A credit history is:
A credit report is:
a record of the
borrower's past
loans and credit
related
transactions
a record of a
person's use of
credit
How are credit reports created? What are the names of the three credit reporting agencies? Lender reports consumer's account history to CRAs
who keep a record of the consumer's credit history;
Experian, Equifax, TranUnion
record, created by a CRA is the credit report
What are three examples of personal information on a credit report? of birth, employment history
name, current address, SS#, phone number, date
What are the types of credit account information?
type of credit
loan amount of credit
limit
date
account balance
payment
Information
© Take Charge Today – August 2013 – Credit Reports and Scores Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
Page | 16 2.6.1.L1 Types of Credit
Also known as:
Closed‐end
Open‐End
Definition
Example
installment credit
loan that a borrower
must repay in a
specified # of equal
payments
car loan
student loan
mortgage
credit card
revolving credit
line of credit
established in
advance so it can
be used with ease
Place the following symbols on each section of Sam’s Electronic World Account described by the corresponding type of information.  Type of credit  Loan amount/credit limit  Date account was opened  Account balance SAM’S ELECTRONIC WORLD Address: Account Number:
123 MAIN STREET 3624**** ANYWHERE, AZ 00000 Status: Open/Past due 60 days.
Date Opened:
02/2009 Reported Since: 02/2010 Date of Status: 10/2012 Last Reported: 10/2012 Credit Limit/Original Amount:
$500 High Balance: $550 Recent Balance: $84 as of 11/2012 Recent Payment: $0 Account History:
60 days as of 10‐2012 30 days as of 09‐2012  Payment information Type:
Revolving Terms: N/A Monthly Payment: $0 Responsibility: INDIVIDUAL What types of public record information may be in a credit report? collection
agencies, bankruptcy, tax lien, foreclosure
When are inquiries potentially negative? Seeking additional credit
When do inquiries typically have no impact? Inquiries not initiated by you
Inquiries not related to credit
report
Checking your own credit
© Take Charge Today – August 2013 – Credit Reports and Scores Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
Page | 17 2.6.1.L1 Examples of lenders:
When do lenders report?
banks, credit card companies,
mortgage and finance
companies, retail stores that
offer credit accounts
all positive and negative info is
reported
Who reports to CRA's?
Examples of data furnishers:
When do data furnishers report?
landlords, cell phone companies,
medical providers (no medical info),
utility accounts
typically only when money is owed to
them
5 examples of information not in a credit report
personal
medical info
race and
gender
religion and
nationality
buying
habits
criminal
background
Why is time the only way to remove potentially negative information from a credit report? CRAs retain and report some negative information
of 7-10 years
What information is included in a credit score?
What is a credit score?
numerical summary of
your credit history that
indicates your credit
worthiness (likelihood of
repaying a loan as agreed)
number of credit
accounts
Type of accounts
Who, most commonly, produces scores?
What are the score ranges of the two most common systems?
Fair Isaac
Corporation (FICO)
and VantageScore
FICO 300-800
VantageScore
501-990
A credit score reflects a particular... What does a score indicate about a consumer?
point in time
consumer's
financial reliability
A higher score typically means what?
Does a consumer have one or multiple scores?
higher chance of
credit repayment
multiple
© Take Charge Today – August 2013 – Credit Reports and Scores Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
Page | 18 2.6.1.L1 In addition to access to credit, what are two other ways an individual’s credit history may impact them? Insurance rates, employment, public utility services,
housing
pay bills consistently and on time
maintain reasonable amounts of available credit
5 strategies to build a positive credit history include:
apply for credit sparingly
have a mix o different types of credit; do not have too many of one type of account
check your credit report annually
What are two strategies to acquire and positively manage small lines of credit? Obtain a small closed ended loan from
a bank; set up automatic
payment
obtain a secured credit card
Obtain a credit card with a co-signer;
How often can a free credit report be requested?
What is the only government‐
sponored website?
once
annually from
each agency
annualcreditrep
ort.com
How is a co‐signer impacted? Equally responsible
for
paying back debt
How are credit scores accessed?
-must be
ordered
separately
-Usually costs
a fee
-the 3 CRAs
are the primary
source
-scores may
differ between
each CRA
If an error is found, a consumer should:
contact CRA
that provided
the incorrect
information
© Take Charge Today – August 2013 – Credit Reports and Scores Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona