Your Credit History consumer gov You and

Your Credit History consumer. gov

You and your credit • Have you ever had: – – Credit card? Loan? Utilities in your name? Cell phone with a monthly bill? • This helps make up your credit history.

What is a credit history? • How you use money: – Do you pay your bills when they are due? – How many credit cards do you have? – How many loans do you have? • Your credit history helps make up your credit report.

What is a credit report? • Summary of your credit history: – – Name, address, Social Security number Your credit cards and loans How much money you owe If you pay your bills on time or late

Who creates your credit report? • Credit reporting companies put your information in a credit report: – Trans. Union – Equifax – Experian

Why care about my credit? • You might find mistakes or problems. – Your information from years ago – Somebody else’s information • By mistake • On purpose • You can try to fix mistakes or problems.

Why care about your credit? • Businesses check your credit when you: – – apply for a job get car or home insurance apply for a credit card or loan get a cell phone

How do you get your credit report? • Only one place to get your free report: – Annual Credit Report • Call 1 -877 -322 -8228 • Go to www. Annual. Credit. Report. com • You get one free report every year from each credit reporting company

You got your report. Now what? • Read it carefully. – – Is it your name and address? Do you recognize the accounts? Is the bill-paying information right? Does it list credit applications? Did you apply for credit at those places?

Good credit and bad credit • Good: – You pay bills when they’re due – You don’t owe too much money on your credit cards • Bad: – You pay bills late – You owe a lot of money on your credit cards

Improving your credit • You can improve your credit: – – Pay your bills by the date they are due. Lower the amount you owe – especially on credit cards. Do not get any new credit cards. Do not close older credit cards. It takes time!

What is a credit score? • A number related to your credit history. – If your credit is good, your score will be high. – If your credit is bad, your score will be low. • Scores go from 300 (low) – 850 (high) • Used when you buy a home or car – To decide whether to give you credit – To decide how much you’ll pay for your credit

Should you know your credit score? • Your credit history is most important. • But your credit score might be used when you buy a car or home. • Seeing your credit score costs money. • Is it worth paying for?

One more time… • Only one place to get your free report: – Annual Credit Report • Call 1 -877 -322 -8228 • Go to www. Annual. Credit. Report. com • You get one free report every year from each credit reporting company

Your Credit History consumer. gov