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Understanding Your Credit Report and Scores
Understanding reports and scores Correcting errors Obtaining a free report
What’s in a credit report?
Identifying information – name, social security number, date of birth, address
Employers
Creditors and payment history – positive and negative
Bankruptcies, judgments, liens, lawsuits
Inquiries you initiated, such as loan and credit card applications
Where does this information come from?
Lenders voluntarily supply information to credit bureaus on an ongoing basis. Having access to this information makes is easier for lenders to make informed decisions and offer your products and services more quickly.
What is a credit score?
It’s a number calculated by a credit bureau for use in making a decision on loans or other products or services. Credit scoring is a point system based on your credit history to predict how likely you are to repay a loan or make payments on time.
The primary factors in determining your credit score are your timely payment history and how much debt you owe. Late payments on loans, a past bankruptcy, debt collections and judgments will negatively impact your credit score. Other factors that can influence your score are how long you’ve used credit, how often you’ve applied for new credit, and whether you’ve recently taken on new debt.
Why is my credit score important?
Lenders, landlords, insurance companies and potential employers all may want to look at your credit report. Lenders want to be sure the debt you owe is manageable. They get concerned if you have a significant amount of debt compared to your income. In general, the better your credit score, the better chance you have of getting a loan with an attractive interest rate, getting the apartment you want, getting insurance and getting a good job. As you can see, it’s important to make sure the information on your credit report is accurate – and in the best shape possible!
How can I get a free copy of my report?
There are three major credit bureaus, and you can obtain a free report from each of them once per year. You can get your free report by going to www.annualcreditreport.com or calling 877-322-8228.
You can also get a free report at any time if you’re:
Denied credit within the past 60 days
A victim of identity theft
A welfare recipient
Unemployed and job-hunting
It’s a good idea to get a copy of your report at least once a year. You can also have your credit monitored through a Credit Union service called Alert Me. You will need internet access to use Alert Me. Subscribe now!
What to look for on your report:
Make sure it accurately reflects how you have paid your bills
Verify that all accounts listed are yours (especially if you have a common name or are a Jr)
Look for accounts you don’t use and may have forgotten about (you may want to close them)
What if there is incorrect information on my report?
Write a letter to the credit bureau explaining why you think information is inaccurate. The credit bureau has 30 days to investigate, notify you of results, and delete inaccurate or unverifiable information. If you disagree with investigation results, write a dispute statement to appear in your file. Where else can I go for help?
Federal Trade Commission - 877-382-4357 www.ftc.org
Contacting the Credit Bureaus
Need to correct information on your report? You will need to contact EACH credit reporting agency that is reporting the incorrect information.
Cal State L.A. Federal Credit Union provides links to Internet sites and information maintained by third parties for convenience only. Links from this web site to web sites not managed by the Credit Union do not imply endorsement or credibility of the service, information, or product offered through the linked sites, and Cal State L.A. Federal Credit Union assumes no liability related to user's use of linked sites. Any question, issue or concern arising from content on, or the use of or availability of, any of these sites, should be directed to the actual site owner and not to the Credit Union. In addition, please be aware that Cal State L.A. Federal Credit Union does not have any control of any information you may disclose as a result of accessing any linked site, and you are urged to always exercise caution and good judgment in disclosing any personal or financial information when accessing or using any Internet website.
