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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: [email protected]
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: [email protected](208) 324-7578: [email protected]