A1 Worksheet Understanding Credit Reports



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1.4.2.A1 Worksheet
Understanding Credit Reports

Name_______________


Date_______________
Total Points Earned


  1. Total Points Possible Percentage

Directions: Complete the following questions during the PowerPoint presentation.




  1. What is a credit report? (1 point)



  1. Define credit history. (1 point)



  1. Identify three informational items listed on a consumer’s credit report. (3 points)



  1. List three ways to build credit. (3 points)




  1. List four strategies to build a good credit rating. (4 points)



  1. What is the general rule about using credit? (1 points)




  1. What are three ways a consumer can harm his/her credit score? (3 points)

© Family Economics & Financial Education – Revised April 2005 – Credit Unit – Understanding Credit Reports – Page 8 Funded by a grant from Take Charge America, Inc. to Norton School of Family and Consumer Sciences at the University of Arizona



1.4.2.A1 Worksheet



  1. Define the purpose of a Credit Reporting Agency. (1 point)



  1. Who are the three credit reporting agencies in the U.S.? (3 points)



  1. What Web site can a person visit to receive a free credit report annually? (1 points)


  1. Who can request a consumer’s credit reports? (1 point)



  1. What are the two most common errors that appear on a credit report? (2 points)



  1. What are the two rights consumers are given under the Fair Credit Reporting Act? (2 points)



  1. Define credit score. (1 point)



  1. What are the five categories and the percentages important to a credit score? (10 points)

16. List three ways a credit score can affect a consumer. (3 points)



© Family Economics & Financial Education – Revised April 2005 – Credit Unit – Understanding Credit Reports – Page 9 Funded by a grant from Take Charge America, Inc. to Norton School of Family and Consumer Sciences at the University of Arizona



1.4.2.A2 Worksheet
Credit Report Scenario

Name_____________


Date_____________





Total Points Earned




10

Total Points Possible




(1 point per response)













Percentage



Directions: Read the sample credit profile scenario and credit report below. Then complete the questions.


Sample Credit Profile Scenario:
Carolina Blue needs a consolidation loan from a bank to pay off her credit card and student loan debt. The loan officer at the bank requests a copy of her credit report. Carefully read Carolina’s credit report from Equifax on the following page.
1. List five items on Carolina’s credit report suggesting she is a high risk borrower: a.
b.
c.
d.
e.

2. List five strategies Carolina can implement to help improve her credit rating: a.


b.
c.
d.
e.

© Family Economics & Financial Education – Revised April 2005 – Credit Unit – Understanding Credit Reports – Page 10 Funded by a grant from Take Charge America, Inc. to Norton School of Family and Consumer Sciences at the University of Arizona



1.4.2.A2 Worksheet













Equifax
















Personal Identification Information

























Carolina Blue










Social Security Number: 000-11-0000







101 Hopeful Ave










Date of Birth: 7-27-82













Lucky, TN 55555































Previous Address










Last Reported Employment










101 College Street










Martyes, Biscuit cook, Collegetown, AL 36830




Collegetown, AL 36830































Public Record Information




























Bankruptcy filed on 8/03 in City of Collegetown with case or other ID 123456789













With Liabilities of $37,568, Assets of $8,657, Exempt Amount of $8,000 Type of Personal, Filed







Individual, and status Voluntary Ch-7

























Lien filed 12/01: Faulty CTY: Case or other ID number-987654321: Amount $1,257.98: Class-State–




Released 2/1/02: Verified 4/1/02




























Credit Account Information




























Company

Account

Whose

Date

Last

Type of

High

Terms

Balance

Past

Date




Account




Name

Number

Account

Open

Activity

Credit

Due

Reported




and Status











































Searmores

123-01

Ind.

7/98

2/03

Revolving

$3000

50

$3300

$350

06/03



















-60days


































past due



















City Visa

22

Ind.

1/99

5/02

Revolving

$2500

50

$1500

$50

07/03



















-30 days


































past due



















The Boot

123-02

Ind.

7/00

1/02

Revolving

$1200

50

$958

$50

07/03



















-30 days


































past due



















The Dock

123456

Ind.

12/01

2/03

Revolving

$2500

50

$1968

$125

08/03





Additional Information
Checking account reported 6/03 opened on 01/99 closed for reason: non-sufficient funds with amount $583


Companies that Requested your Credit File







7/03

Tarmore

7/03

Wally World

7/03

See-N-Save






THE FOLLOWING INQUIRERS ARE NOT REPORTED TO BUSINESSES: PRM – This is a promotional inquiry in which only your name and address were given to a credit grantor so you could be solicited with an offer such as a credit card. (PRM inquiries remain on file for 12 months.)


AM or AR – These inquiries indicate a periodic review of your credit history of one of your creditors (AM and AR inquiries remain on file of 12 months.)
EQUIFAX, ACIS or UPDATE – These inquiries indicate Equifax’s activity in response to your contact with us for either a copy of your credit file or a request for research.

PRM, AM, AR, INQ. EQUIFAX, ACTS and UPDATE inquiries do not show on credit files that businesses receive, only on copies provided to you.




© Family Economics & Financial Education – Revised April 2005 – Credit Unit – Understanding Credit Reports – Page 11 Funded by a grant from Take Charge America, Inc. to Norton School of Family and Consumer Sciences at the University of Arizona



1.4.2.A3 Worksheet
Credit Reports Homework

Total Points Earned




  1. Total Points Possible Percentage

Name_______________


Date_______________

Directions: Read the questions completely. Write the answer in the space below each question.




  1. Why is a credit report important to a consumer? (1 point)



  1. What does a credit report tell potential creditors? (1 point)



  1. How is it possible a consumer might not have a credit history? (1 point)



  1. Describe three ways a typical high school student could work on building credit. (3 points)



  1. Who does a consumer order a copy of their credit report from and what is the cost? (Include two costs in the answer) (3 points)



  1. Can anyone look at a consumer’s credit report? List three businesses with the right to see a consumer’s credit report. (3 points)




  1. List and describe how to contact the three main credit reporting agencies. (3 points)


© Family Economics & Financial Education – Revised April 2005 – Credit Unit – Understanding Credit Reports – Page 12 Funded by a grant from Take Charge America, Inc. to Norton School of Family and Consumer Sciences at the University of Arizona



1.4.2.A3 Worksheet


  1. Describe why it is important to check all three credit reports. (1 point)



  1. What are the two most common errors on credit reports? (2 point)



  1. What are the consumer’s rights if there is an error on a credit report? (1 point)


  1. What is a credit score? (1 point)



  1. Name two affects on financial ability if a person has a low credit score. (2 point)

Bonus: What is the general rule in using credit? (2 points)





© Family Economics & Financial Education – Revised April 2005 – Credit Unit – Understanding Credit Reports – Page 13 Funded by a grant from Take Charge America, Inc. to Norton School of Family and Consumer Sciences at the University of Arizona


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