Understanding your credit report (assignment)

In an online discussion and/or in a short paper, students can discuss what they think are the one or two most important categories displayed on a credit report, and to explain why they are important.

Many students conclude that some of the same behaviors that produce a respectable score also make financial sense. In other words, pay your bills on time, every time, and don’t take on too much debt!

I’ve never been one to try to chase an elusive credit score but, today, auto or home insurance companies, a landlord, and even a potential employer might be interested in seeing either your report or some sort of score. If we want whatever they’re selling bad enough, we’ll permit them.

There are a lot of people with thin credit files and initially establishing credit seems to be a challenge. For all of us, correcting errors is important.

This page from USA.gov explains a bit about who might examine your credit report and a page from the CFPB goes into detail about consumer reporting companies in general.  The CFPB 2019 list of consumer reporting companies is 36 pages!  The FTC provides more information about consumer reports in employment here

This all brings to mind the odd business relationships that we have with consumer reporting agencies. Maybe we can talk more about this!

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View FICO’s “Understanding your credit report” on YouTube

Additional information about credit reporting and scoring:

Fair Isaac Corporation

GreenPath Financial Wellness

Apprisen

Consumer Financial Protection Bureau

Federal Trade Commission

USA.gov

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