Lyle Hansen, M.S., AFCLyle Hansen, M.S., AFCUniversity of Idaho ExtensionUniversity of Idaho ExtensionJerome County Extension OfficeJerome County Extension Office(208) 324-7578: (208) 324-7578: lhansen@uidaho.edu

Credit Scores and Identity Theft

What We Will Cover…

• What a Credit Score Can Mean to You

• How a FICO Credit Score is Determined

• What Can Hurt Your Credit Score

• What You Can Do to Build and Keep a Respectable Credit Score

• How to Protect Yourself Against Identity Theft and Keep a Good Credit Score

Sometime we are our own worst enemy…

A Brief History of Credit and Credit Scores

• First used in 1995 as a guide for a home loan.

• Have been expanded to include your approval or denial on almost every type of financial loan!

• Credit Scores are being used for almost everything now!

• They are the new normal!

NPR:“A credit score can be just as important as an SAT score…”

Who Uses a Credit Score?

• Auto Insurance

• Home Insurance

• Life Insurance

• Medical Insurance

• Employment

• Landlords

• Medical

• Utility Companies

The Credit Reporting System

What’s In My Fico Credit Score?

What Hurts Your Fico Credit Score?

• Missing or neglecting a payment.– A 30-day late payment can drop your score

150+ points!

• A bankruptcy will stay on your report for 7-10 years, and can drop your score by 250 points.

• Any loan from a finance company (payday lender, subprime financer, etc.) drops your score by 20+ points, even when paid back on time!

What Hurts Your Fico Credit Score?

• Errors on your Credit Report!– 70% of all credit reports contain at least 1

error!– These errors drop your credit score and cost

you money!

What You Can do to Help Your FICO Credit Score?

• Make All Payments on Time!

• Make more than the minimum payment or pay off credit cards!

• Keep Loan Balances Low!

• Keep Old Accounts Open

• Do not have too many credit cards!

• Don’t open unnecessary revolving credit accounts!

Minimize Your Risk

• Protect your Social Security Number:– Do not use on checks, insurance or other

cards, driver’s license.– Memorize your number and do not carry

your card with you.– Ask why when your SS# is requested:

• How will it be used?• How will it be protected?• Is it necessary?

Minimize Your Risk

• Carry only the credit cards you need.

• Keep a copy of all your important account and phone numbers.– Write them down.– Take a picture. – Photocopy.– Keep copy in a safe secure place.

Minimize Your Risk

• What is the web address to order a free credit report?

• Freecreditreport.com is not free!

Minimize Your Risk • Obtain free credit report yearly.

– www.annualcreditreport.com

– One free credit report is available from each of the credit reporting agencies: Equifax, Experian, and TransUnion.

– 1-877-322-8228

– Mail “Annual Credit Report Request” form to:• Annual Credit Report Request Service P. O. Box 105283 Atlanta, GA 30348-5283

Minimize Your Risk • Obtain free credit report yearly.

– www.annualcreditreport.com

• What is the difference between: www.annualcreditreport.comwww.annnualcreditreport.com– The extra “n” directs me to

freecreditreport.com

• Misspellling can cost you money!

How Many Credit Offers do You Receive in a week?

Month? Year?

•Good news! There is a free way of doing this!

Minimize Your Risk

• Remove your name from pre-approved credit card mailing lists. You can do this by going to www.optoutprescreen.com or calling 1-888-5-OPTOUT.

Minimize Your Risk

• Stop telemarketers from calling your home and cell phone numbers. You can do this by going to WWW.DONOTCALL.GOV or calling 1-888-382-1222.

• Your phone numbers will be removed for LIFE (No Longer Only 5 Years)!

Minimize Your Risk

• FREEZE Your Credit!– Costs $6 Per Credit Bureau in Idaho– Costs $6 to “Thaw” /Unfreeze Credit

• One of the most successful tools to prevent financial Identity Theft!

Minimize Your Risk

• Do not provide personal information over the phone, through the mail, or over the Internet unless:

– You placed the call or the letter or email

And

– You know the company is reputable and the request is legitimate.

What You Can do!• Review your free Credit Report for any

errors! *Annualcreditreport.com (Not Freecreditreport.com!)

• Stop credit solicitations!

• Make sure you are on the Do-not-call list!

• Consider “Freezing Your Credit”!

• Use your existing credit cards twice a year and pay them off!

Questions

Lyle Hansen, M.S., AFCLyle Hansen, M.S., AFCUniversity of Idaho ExtensionUniversity of Idaho ExtensionJerome County Extension OfficeJerome County Extension Office(208) 324-7578: lhansen@uidaho.edu(208) 324-7578: lhansen@uidaho.edu