Financial Advice

Financial Advice

1. Explain what a credit report is. Name 3 facts that you learned about a credit report.

 

A credit report contains information about you, your credit, some bill repayment history, public records and the status of your credit accounts.



 

• Three credit reporting agencies are Equifax, Experian, and Trans Union.
• The FACT Act entitles you to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies.
•   Any organization or individual who obtains a copy of your credit report under false pretenses can be fined and jailed for up to a year.

2. Explain what your credit score is. Name 3 facts about your credit score.

 

Your credit score is calculated from your credit report.

• A credit report score in the 680-and-up range is a good score.
• When you apply for a credit card, mortgage or even a phone hookup, your credit score is checked.
• Credit scores makes it possible for stores to accept checks, for banks to issue credit or debit cards and for corporations to manage their operations. Depending on your credit score, lenders will determine what risk you pose to them.

3. What advice would you give about ID theft?

 

Identity theft happens when someone steals your personal information and uses it without your permission. It’s a serious crime that can wreak havoc with your finances, credit history, and reputation — and can take time, money, and patience to resolve.Don’t give out your SSN unnecessarily (only for tax reasons, credit or verified employment.) Before providing personal identifiers, know how it will be used and if it will be shared.Use a shredder to dispose of documents with personal information.Use firewall software to protect computer information. Keep virus and spyware software programs updated. If your identity has already been taken be sure to notify your bank so they can put a stop on the credit card.