Glencoe Keyboarding with Computer Applications

Introduction
Learn more about credit reports, who uses them, and for what purpose.

Directions
Read the information below and apply what you learn to answer the questions. Key your answers into the spaces provided. After you finish keying, check your work carefully and click Submit.

Give Me Some CreditAnybody who has an active credit card, bank loan, or mortgage has a credit report. A credit report is a detailed account of your financial history. Lenders use your financial history data to evaluate to the risk involved in lending you money. Information found on a credit report can include:

• The total amount of credit accounts you have open, available, or closed.
• The total amount you owe—including credit, auto, home, and other amounts.
• The total dollar amount of minimum payments you owe monthly.
• Information on whether any credit lines are "maxed out" (at the maximum spending limit).
• The ratio of debt to income—though exact income may not be reported.
• The record of how well you pay your bills—such as missed or excessive late payments.
• Inquiries—every time you apply for a credit card or somebody asks to see your credit report. Too many inquiries may raise a red flag to lenders.

Other types of information can include current personal and contact information, a history of important financial transactions, public records such as tax penalties or bankruptcies, and any information on disputes you have made on the report.

By law, your credit report may not contain information such as race, religion, your income or bank account amount, or criminal record.

Credit Bureaus There are three major U.S. credit bureaus —national companies that collect your credit information from stores, banks, lenders, landlords, and any other person or company you do business with. These bureaus then sell your credit report to other businesses so they can evaluate your credit history.

The three main U.S. credit bureaus are Equifax (www.equifax.com), Experian (www.experian.com ), and TransUnion (www.transunion.com ). Visit their Web sites to learn their contact information in case you need to order a copy of your report or to report credit fraud or identity theft.

Correcting Inaccuracies The Fair Credit Reporting Act of 1971 was put into place to regulate, or control, credit reporting companies. It lays out the rights of individual citizens to review and challenge their credit report for incorrect or malicious items. It also states who may and may not purchase your credit report for business purposes.

Important Impact Your credit report can have a substantial impact on your financial plans, such as borrowing money, obtaining credit cards, and qualifying for an auto or home loan. Therefore, it is very important to get a copy of your report from all three major bureaus on a regular basis to check for problems.

1			Who has a credit report?
2			What are three of the types of information found on a credit report?
3			What types of information are prohibited by law from appearing on a credit report?
4			Name the three major U.S. credit bureaus.
5			Why is it a good idea to regularly check your credit report?