Chapter 8 - Credit bureaus
What is bankruptcy?
legal procedure for dealing with debt of individuals and businesses. Specifically a legal court case filed under a chapter of Title 11 of the U.S. Code.
What is the average credit card balance for Americans?
$14,750
What is the total of consumer debt in the U.S.?
$2.4 trillion
What is a credit score?
Calculated score that measures an individual's credit worthiness.
What is the Federal Trade Commission?
It publishes a brief semiannual list
What is fraud?
Seller's intentional deception of buyer, which is illegal.
Who is most likely to have unsecured debt?
18-34 year olds
What is the range of a FICO credit score?
300-850
How many college identities are stolen per month?
460,000
What is the range of a vantagescore credit score?
501-990
What is the Credit Bureau?
Agency which collects the credit history of consumers so that creditors can make decisions about granting loans.
What are the two main types of credit scores?
FICO and Vantagescore
How many 18-34 year old's would consider bankruptcy?
1 in 5
How is a FICO score calculated?
1. 35% debt history 2. 30% debt levels 3. 15% duration of debt 4. 10% type of debt 5. 10% new debt
Refute the myth of building credit score.
1. A credit score is an "I love debt" score, not a measure of financial success. 2. Anything you "need" a credit score for can be done without one.
What are ways to communicate effectively?
1. Cease-and-desist letter 2. Pro rata plan 3. Lawsuit communication 4. Opt-out letter
Describe the value of credit reports.
1. Detailed history of how you've used debt. 2. Even if you have no debt you should still check your credit score because of identity theft.
What are the four walls that you should always set your priorities by?
1. Food 2. Shelter 3. Clothing 4. Transportation
What actions should you take when your identity has been compromised?
1. Place a fraud victim alert on your credit report. 2. Get a police report. 3. Remember you owe nothing and you should pay nothing. 4. Contact the fraud-victim division of each creditor and furnish documentation. 5. Be persistent; this will take time.
Of all identity theft, how many people knew the person?
1/2
How many Americans do not use an insured financial institution?
10 million
What is a credit report?
A document showing your credit history, inquiries, and facts about any accounts you have opened with individual credit lines and on-time or late payment activities
What is the Fair Debt Collection Practices Act? (FDCPA)
Federal law that prohibits unfair debt collection practices such as lying, harassing, misleading, and otherwise abusing debtors by collectors working for collection agencies.
What is the Fair Credit Reporting Act? (FCRA)
Federal law that regulates the collection, distribution, and use of consumer information, including consumer credit information.
What state has the highest bankruptcy rate with 11 occurrences per 1,000 people?
Nevada
Will marrying someone with a bad credit score affect your credit score?
No
What is disposable income?
The amount of money left after all necessities are paid