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Protect Your Identity
Prevent identity theft by taking the following
precautions:
Monitor account balances for unexplained charges
or withdrawals
Order a copy of your credit report to check for
new credit accounts in your name
Avoid common passwords such as your mother’s
maiden name, your DOB, or the last four digits of your SSN
Don’t give out personal information
on the phone, through the mail, or over the Internet unless
you’ve initiated the contact
Remove mail from your mailbox promptly
and shred receipts, medical records and any sensitive financial
information
Keep your Social Security card in a secure
place and give your SSN only when absolutely necessary
Limit the identification information and the number of credit
cards that you carry with you
Secure your computer by updating your virus protection software,
firewall and operating system regularly. Avoid using an
automatic log-in feature on your computer
To learn more about the FTC’s Privacy Policy,
visit www.consumer.gov/idtheft
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UNDERSTANDING YOUR CREDIT
SCORE
What is Credit Scoring?
Credit scoring is a system lenders use to help determine
whether to give you credit. Information is collected from
your credit report and your credit application to calculate
your credit score.
A statistical program compares your credit information to
those of hundreds of thousands with similar profiles. Based
on this comparison, a score is generated which identifies
the level of future credit risk you present to a lender.
In order to calculate a credit score, your report must contain
at least one account which has been opened for six months
or greater. In addition, the report must contain at least
one account that has been updated in the past six months.
This ensures that there is enough current information on
which to base a score.
What is the difference between my Credit Score and
my FICO Score?
Credit bureau scores are often called “FICO Scores”
because most credit bureau scores used are calculated using
software developed by Fair Isaac Corporation (FICO). In
general, when people talk about “your score”,
they’re talking about your current FICO score. But
in fact there are three different FICO scores developed
by Fair Issac – one at each of the three main credit
reporting agencies. Each of these scores has different names
as follows:
| Credit
Reporting Agency |
FICO Score Name |
|
| Equifax |
Beacon® |
|
| Experian (formerly TRW) |
Experian/Fair Issac Risk Model |
|
| TransUnion |
EMPIRICA® |
|
|
|
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The FICO score from each credit reporting agency considers
only the data in your credit report at that agency. Fair
Isaac makes the score as consistent as possible between
the three credit reporting agencies. But, because lenders
may report information differently and the credit agencies
may report information differently, a slightly different
score may result.
Since lenders may review your score and credit report from
any of the three credit reporting agencies, it’s a
good idea to check your credit report from all three to
make sure they’re accurate.
Your Credit Report - Why is it so important and
how do I get a copy?
A credit report is a record of your credit payment history.
This information is gathered by credit reporting agencies
which maintain files on millions of borrowers. The information
in your report has been reported to the credit reporting
agencies by lenders who have extended credit to you.
What Specific Information is found in your Credit Report?
Identifying Information
Your name, address, Social Security number, date
of birth and employment information are used to identify
you. These factors are not used in credit bureau scoring.
Updates to this information come from information you supply
to lenders.
Trade Lines
These are your credit accounts. Lenders report on each account
you have established with them. They report the type of
account (bankcard, auto loan, mortgage, etc.), the date
you opened the account, your credit limit or loan amount,
the account balance and your payment history.
Public Record Information
Public record information includes bankruptcy, tax liens,
monetary judgments, garnishments, overdue child support.
Credit reporting agencies collect this information from
state, county, and federal court records as well as from
collection agencies.
Inquiries
Whenever you apply for a loan or credit, you are authorizing
that lender to request your credit report. Each request
causes an inquiry to appear on your credit report. This
section contains a list of everyone who accessed your credit
report within the last two years. The report you see lists
both “voluntary” inquiries, triggered by your
request for credit, and “involuntary” inquiries,
such as when lenders order your report to make you a pre-approved
credit offer in the mail.
Consumer Statements
An additional statements section may also be included if
you have added an explanation about an account.
Who are the Credit Reporting Agencies?
The three major credit reporting agencies are:
| Equifax |
(800) 685-1111 |
www.equifax.com |
| Experian (formerly TRW) |
(888) 397-3742 |
www.experian.com |
| TransUnion |
(800) 888-4213 |
www.transunion.com |
All of the information gathered in your credit report is compiled
to calculate a credit score. |
