Question: Credit History

Answer: a record of a person’s past spending habits

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Question: Businesses that report on your credit history

Answer: Transunion, Equifax, and Experian

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Question: Credit Report

Answer: a statement that includes an individual’s credit history and score

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Question: Credit Score

Answer: the number measured by several agencies based on a person’s financial decisions, usually between 300 and 850; the higher the better

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Question: What a credit report contains

Answer: personal information, public records, inquiries, account history, and a personal statement

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Question: Personal Information

Answer: current and former names and addresses, employment history, date of birth, telephone numbers, and social security number

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Question: Public Records

Answer: bankruptcies, liens, and judgements from any county, state, or federal court records

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Question: Bankruptcies

Answer: a federal process to eliminate debt

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Question: Liens

Answer: a legal claim on property

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Question: Inquiries

Answer: requests for credit history; includes promotional credit card offers, lenders checking for updates, or a request for a loan or another credit

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Question: Account History

Answer: largest portion; contains information on any credit accounts, whether closed or open

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Question: Classified accounts

Answer: adverse accounts, accounts in good standing, and revolving accounts

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Question: Adverse Accounts

Answer: information about accounts that might be viewed negatively by creditors

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Question: Accounts in good standing

Answer: satisfactory accounts; viewed positively by creditors

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Question: Revolving Accounts

Answer: credit accounts

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Question: Details for each account

Answer: lender name, date account opened and closed, credit limit, current account balance, current monthly payment, and number of late payments

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Question: Personal Statement

Answer: contains a summary of all accounts categorized by type; includes the name and number of accounts open, the balance for each account, the credit limit, the debt to credit ration, and the monthly payment amount

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Question: Installment Loan

Answer: a fixed payment is paid for a specified period of time; for example, a car loan

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Question: Revolving Loan

Answer: a loan that does not have a fixed monthly payment or balance; for example, a credit card

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Question: Categories credit scores are based off of

Answer: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and types of credit used (10%)

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Question: Things that positively affect your credit score

Answer: making payments on time, keeping your debt to credit ration low, using discretion when applying for new credit and loans, and varying the types of credit you use

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Question: Things that negatively affect your credit score

Answer: making late payments or no payments at all, using all your credit and making minimum payments, frequently applying for new credit and loans, and only using one type of credit

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Question: Other people who might want your credit history

Answer: creditors, employers, insurers, gov’t agencies, and landlords

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Question: Why creditors want your credit history

Answer: consumers with a higher credit score are more likely to pay back the money

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Question: Why employers want your credit history

Answer: credit history can show whether a person knows how to handle finances properly

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Question: Why insurers want your credit history

Answer: they determine your rates by looking at your credit history; some say people with better credit scores are more likely to be better drivers and more responsible home owners

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Question: Why gov’t agencies want your credit history

Answer: sometimes a gov’t benefit or license is granted based on financial status

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Question: Why landlords want your credit history

Answer: to verify employment as well as how responsible a person is with financial obligations

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