Better credit starts with knowledge.
The more your clients know about what constitutes good or bad credit, the more they can do to improve and maintain good credit standing.
Credit Score – The Bottom Line on Approval and Payment
Information about your clients and their credit experiences is pulled from credit reports, including:
- Bill paying history
- Outstanding Debt
- Length of credit history
- Age of accounts
- Types of credit used
Creditors use a statistical program to compare credit information to the loan repayment history of consumers with similar profiles. A credit score is calculated based on a system that awards points for each factor that helps predict who is most likely to repay a debt. The total number of points calculated for a consumer’s history (a “credit score”) helps predict the creditworthiness of a given consumer based on how likely it is that he or she will repay a loan as agreed.
Learn More About Credit Scores
Discover what Credit Score ranges are and how your clients’ score can impact the availability and cost of credit, insurance, or even the ability to rent an apartment or get a job.
Learn More About Credit Scores (opens in a new window)
Credit Report – Your Clients Should Know Their History (the Bureaus and Lenders do)
The credit report is a key part of many credit scoring systems. That’s why it is critical for consumers to make sure their credit reports are accurate.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide consumers with a free copy of their credit reports at their request, once every 12 months. Individuals can order their free annual credit report online at annualcreditreport.com, by calling 1 (877) 322-8228, or by completing the Annual Credit Report Request Form and mailing it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
The Fair Credit Reporting Act (FCRA) also gives consumers the right to get their credit score from the national credit reporting companies. They are allowed to charge a reasonable fee, generally around $8, for the score.
Federal Trade Commission – Consumer Information > Credit & Loans: