Your Personal Credit Report

Your Personal Credit Report+

Free Credit Reportwww.annualcreditreport.com

+How to obtain creditAPPLY FOR CREDIT!A CREDIT APPLICATION is a form or interview that requests information that sheds light on your ability and willingness to repay debts.

+What if I am denied?Half of unsuccessful applicants for credit are denied because they have no established CREDIT HISTORY.CREDIT HISTORY is a continuing record of a persons credit usage and repayment of debts.

+How might I establish a credit history?1. Establish both a checking account and savings account2. Have your telephone and other utilities billed in your name3. Request, acquire, and use an oil-company credit card4. Apply for a bank credit card5. Ask a bank for a small, short-term cash loan6. Pay off student loans

Source: Personal Finance by Garman & Forgue

+The effects of a poor credit report:One may:Lose a great job offerHave trouble renting an apartmentHave trouble getting a phoneBe denied a loan for a car or home, AND be required to pay a higher interest rateBe denied auto or homeowners insurance, OR be charged a higher premium

+A HUGE credit report myth!When paid, the bad debt will go awayLate or missed payments can be kept for 7 years

+Having good creditEnables one to buy a car or a houseAllows you to borrow moneyShows ones responsibility and trustworthiness+MONITOR YOUR CREDIT REPORTOne should check their credit report once every yearWHY?1. Credit Bureaus make mistakes2. It can allow you see if youve been a victim of identity theft3. You know the information a prospective lender, employer, or landlord will see.

Source: www.lawweekly.org

+Examples from my own personal credit report-REVOLVING ACCOUNTSOpen AccountsChase Bank Credit CardClosed AccountsBank of America Credit CardBank of America Credit CardINQUIRIRIESAmerican Express, Capital One, Discover Financial Services*All of my inquiries will not affect my credit report because only my name and address were provided so they can offer me credit or insurance. These types of inquiries remain on a report for 12 months.PERSONAL INFORMATIONEMPLOYMENT HISTORY+Resources:Grosz, B. (2009). Building good credit can save you money, help you get a job. Virginia Law Weekly, 62.Garman, E.T., & Forgue, R.E. (2012). Personal finance (11th ed.). Mason, OH: South-Western.+