Credit Score
three warning signs that you may have had your identity stolen:
checks disappear from you checkbook credit report shows accounts you didn't open bank and billing statements don't arrive on time
equal credit opportunity
consumers cannot be discriminated by: 1. gender 2. race 3. martial status 4. religion 5. age when applying for credit, if denied you have the right to know why
How often should you check your credit score?
every year
What actions impact a credit score?
financial behavior and history
why does having a good score matter?
house hunting, job opportunities, better interest rates, financial flexibility
a strong password should include what elements
letters, symbols, and numbers
How is a credit score calculated?
30% what you owe 10% new accounts 35% payment history 15% types of credit 10% length of credit history
What is considered a good score?
700
Can you really live without a credit score?
yes
fair debt collection practices
1. collectors must follow in procedures when collecting 2. protects consumers from deceptive, abusive, or unfair collection practices
Truth in lending
1. lenders have to tell you the cost of credit 2. must tell you credit terms and the APR 3. if your credit is stolen, it limits your liability to $50
fair credit billing act
1. protects consumers in the case of an error in credit billing or electronic funds transfer in resolving mistakes
list three tips to protect yourself from identity theft
1. shred credit card offers and documents with personal info 2. sign the back of debit cards with "see photo ID" 3. purchase identity theft protection
Fair credit reporting act
1. you have the right to see your credit report 2. promotes accuracy and privacy of credit report
What is a credit bureau?
A consumer reporting agency Keeper of your credit score
What are the three main credit bureaus?
Equifax, TransUnion, Experian
Does the FICO score measure wealth or how well you manage money?
No
Why is the FICO score a really "I love debt" score?
You have to build debt to get a score It only measures debt
why would a bank or a cell phone company care about you credit?
so they know if you'll pay your bills on time