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2.6.1.L1

CreditReportsandScoresNoteTakingGuide

TotalPointsEarned

Kainan Cooper

10/30/2014

Name

TotalPointsPossible

Percentage

Date

Class

Aborroweris:

Alenderis:

Acredithistoryis:

Acreditreportis:

The person or
organization that
is receiving the
money from the
lender

The person or
organization
who has the
resources to
provide the
individual with a
loan

A record of a
consumers
ability to repay
debts and
demonstrated
responsibility in
repaying debts.

A detailed report
of an individuals
credit history
prepared by a
credit bureau and
used by a lender
to in determining a
loan applicants
creditworthiness,
including 1

Howarecreditreportscreated?
Step 1: Get the data
Step 2: Identify the predictive characteristics

Step 4: Calculate the score

Step 5: Validate the score

Whatarethenamesofthethreecreditreporting
agencies?

Equifax, TransUnion, and Experian

Whatarethreeexamplesofpersonalinformationonacreditreport?

Social security, Date of birth, current and previous

employers

Whatarethetypes
ofcreditaccount
information?

Personal Data

Credit History

Account Details

Inquiries

Collections

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2.6.1.L1

TypesofCredit

Alsoknownas:

Definition

Extension of credit

Closedend

OpenEnd

Revolving Credit

Example

A loan or extension of credit

in which the proceeds are
dispersed in full when the
loan closes and must be
repaid, including any interest
and finance charges, by a
specified date.

Someone pays back

the full amount owed
of credit on a certain
date set by the
company.

Requires the borrower to

pay at least a minimum
amount of the total owed
each month, or if you want
the entire amount, even as
new charges are being
added to the balance.

An individual
subsequently pays
back money prior to
payments coming
due.

Placethefollowingsymbols
oneachsectionofSams
ElectronicWorldAccount
describedbythe
correspondingtypeof
information.
Typeofcredit
Loanamount/creditlimit
Dateaccountwas
opened
Accountbalance

SAMSELECTRONICWORLD
Address:AccountNumber:
123MAINSTREET3624****
ANYWHERE,AZ00000
Status:Open/Pastdue60days.
DateOpened:
02/2009
ReportedSince:
02/2010
DateofStatus:
10/2012
LastReported:
10/2012

Type:
Revolving
Terms:
N/A
MonthlyPayment:
$0
Responsibility:
INDIVIDUAL

CreditLimit/OriginalAmount:
$500
HighBalance:
$550
RecentBalance:
$84asof11/2012
RecentPayment:
$0

AccountHistory:
60daysasof102012
30daysasof092012

Paymentinformation

Whattypesofpublicrecordinformationmaybeinacreditreport?

Bankruptcy, tax lien, judgements

Whenareinquiriespotentiallynegative?

When damage happens to your credit score

Whendoinquiriestypicallyhavenoimpact?

If you apply for many credit

cards

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2.6.1.L1

Examplesoflenders:

Whendolendersreport?

At least once every month to

major credit bureaus

Portfolio Mortgage Lenders

Correspondent Mortgage Lenders
Direct Mortgage Lenders
Wholesale Mortgage Lenders
Warehouse Lenders
Subprime Mortgage Lenders
Alt-A Mortgage Lenders

WhoreportstoCRA's?
Examplesofdatafurnishers:

Whendodatafurnishersreport?

Consumer Financial Protection Bureau

Once every month

5examplesof
informationnot in
acreditreport

Credit
Report
Derivatives

Non-Credit
Banking
Information

Beliefs &
Affiliations

Outdated
Financial
Information

Certain Public
Records

Whyistimetheonlywaytoremovenegativeinformationfromacreditreport?

Because you cant pay to have them removed and the only way they will take off negative

things is to wait.

Whatisacredit
score?

Whatinformationis
includedinacredit
score?

Three digit number calculated

from your data-rich credit
report and is one factor used
by lenders to determine your
creditworthiness for a
mortgage, loan or credit card.

Bill paying history, Number of accounts

you have and what kind, how much of
your available credit you are using, how
long you have had your accounts open,
recent credit activity, whether youv'e
had a debt referred for collection, a
foreclosure, or a bankruptcy, and how
old these are.

Who,most
commonly,produces
scores?

Whatarethescore
rangesofthetwo
mostcommon
systems?

FICO

300-850

Acreditscorereflects
aparticular...

Whatdoesascore
indicateabouta
consumer?

Determines your
credit worhiness
for a mortgage

Whether or not
they can be
approved

Ahigherscore
typicallymeanswhat?

Doesaconsumerhave
oneormultiple
scores?

Lenders offer their

best rates and
terms

Multiple

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2.6.1.L1

Inadditiontoaccesstocredit,whataretwootherwaysanindividualscredithistorymayimpactthem?

-You
might have to pay more to borrow money

-It can effect whether you get a job, what you pay for insurance

5strategiesto
buildapositive
credithistory
include:

Whataretwostrategiestoacquireandpositivelymanagesmalllines

ofcredit?

Howoftencana
freecreditreportbe
requested?

Whatistheonly
government
sponoredwebsite?

Howisacosignerimpacted?

Howarecredit
scoresaccessed?

Ifanerrorisfound,
aconsumershould:

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