PFM - Chapter 4, Lesson 3 Flashcards
FICO Score
A person’s credit score that’s calculated with software from Fair Isaac Corporation.
- Most lenders use this score.
Credit Score
A three-digit number that tells banks how likely you are to pay your monthly payments.
- How likely someone is to repay debt.
Credit Bureaus
Companies that collect credit rating information and makes it available to creditors.
The FICO score does not ___________________, rather ___________________.
1) Gauge how well you handle your money/how successful you are
2) How good you are at making payments to lenders.
Three Tax Unions
1) Equifax
2) Experian
3) TransUnion
Why do you need to know what is in your credit report, even if you don’t have a credit score?
Many credit reports have errors or signs of identity fraud.
Once you turn ___________________, you can ______________________.
1) 18
2) Request a copy of your credit report from each of the three main credit bureaus every year for free.
You have to contact the credit bureau for your credit score. Should you ever fall for a website telling you you have to pay for a copy of your credit score?
NO!
Do all three credit bureaus keep the same information on you?
No; they differ slightly.
- So, it is best to get a copy of your report from all three bureaus.
If there are errors or signs of identity theft on your credit report, what should you do?
Contact the credit bureaus to have a fraud alert placed on your report.
- Then report any and all suspicious activity to your bank and credit issuers.
