Posts Tagged With: Credit Reporting

Establishing or Rebuilding Credit Scores

Your credit scores are prepared by FICO and other companies and are mainly based on your history of managing debts, such as whether you tend to make payments on time.  Your scores play a significant role in your everyday life because the next time you apply for a loan or credit card—or perhaps a new apartment or insurance—your scores could affect the final decision, including your costs.

For many consumers with damaged credit scores and those with no credit record, here are some ways to improve your credit scores.

  1. Consider consulting with a reputable credit counseling service.
  2. Understand what information is most likely to influence your credit scores.
  3. Obtain and review a copy of your free credit report.

For more information, click here.

Teaching Suggestions

  • Ask students if they know how to obtain their free credit reports from credit bureaus. If they already have received their credit report(s), did they find any errors?
  • What can you do if your credit report contains erroneous data or records of someone with a name similar to yours?

Discussion Questions

  1. Why it is important to review your credit files every year even if you are not planning to apply for a big loan?
  2. What are your legal remedies if a credit reporting agency engages in unfair reporting practices?
Categories: Chapter 5, Credit Scores | Tags: , , | Leave a comment

Credit Report Accuracy

Credit Report Accuracy

In late January 2015, The Federal Trade Commission issued a follow-up study of credit report accuracy and found that most consumers who previously reported an unresolved error on one of their three major credit reports believe that at least one piece of disputed information on their report is still inaccurate.

The study found that one if five consumers had an error that was corrected by a credit reporting agency after it was disputed on at least one of their three credit reports.  The study also found that about 20 percent of consumers who identified errors on one of their three major credit reports experienced an increase in their credit score that resulted in a decrease in their risk tier, making them more likely to be offered a lower auto loan interest rate.

For more information, Click Here.

Teaching Suggestions

  • Ask students what are their legal remedies if a credit reporting agency engages in unfair reporting practices.
  • Bring to class examples of credit-related problems of individuals and families. Suggest ways in which these problems might be solved.

Discussion Questions

  1. Why is it important for consumers to check their credit reports at least once a year?
  2. What can consumers do to ensure that their credit reports are free from errors?
Categories: Chapter 5, Credit Scores | Tags: | Leave a comment

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