Podcast
Questions and Answers
Which credit reporting agency is specifically mentioned as being used by ACCU?
Which credit reporting agency is specifically mentioned as being used by ACCU?
What does the acronym ECOA stand for?
What does the acronym ECOA stand for?
Equal Credit Opportunity Act
The higher the score trending towards BK indicates a potential _____ risk.
The higher the score trending towards BK indicates a potential _____ risk.
bankruptcy
What is a hard pull used for?
What is a hard pull used for?
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A soft pull counts as an inquiry on a credit report.
A soft pull counts as an inquiry on a credit report.
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To unlock a frozen credit report, the ACCU member needs to call _____ to unlock their file.
To unlock a frozen credit report, the ACCU member needs to call _____ to unlock their file.
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What is the purpose of a credit report?
What is the purpose of a credit report?
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What does a PET code in a credit report indicate?
What does a PET code in a credit report indicate?
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What action should be taken if the credit report does not match the provided social security number?
What action should be taken if the credit report does not match the provided social security number?
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When a member unfreezes their Experian credit report, how long does ACCU have to pull a credit report?
When a member unfreezes their Experian credit report, how long does ACCU have to pull a credit report?
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Study Notes
Credit Reports
- A credit report summarizes a person's financial history.
- Potential lenders use credit reports to determine creditworthiness.
- There are three major credit reporting agencies:
- Experian (Used by Alliance Catholic Credit Union)
- Equifax
- Transunion
ECOA Codes
- PET (Petitioned): Indicates an active bankruptcy program.
- Alliance Catholic Credit Union does not lend to individuals with a PET status.
- DISC (Discharged): Indicates a completed bankruptcy program.
- DISM (Dismissed): Indicates a bankruptcy program that was not completed.
- Alliance Catholic Credit Union can lend to individuals with DISC or DISM status.
Viewing Credit Reports
- Credit reports can be viewed in two formats:
- HTML: Displays the report on a single page.
- SymForm: Displays the report on multiple pages.
Credit Report Information
- The "Date" field indicates when the credit report was pulled.
- The "765" field represents the Experian credit score.
- The "0257" field indicates the level of risk for bankruptcy, with higher numbers indicating a higher risk.
- The "Year of Birth" field should be verified to ensure accuracy with the credit report.
- The "1" designation indicates an individual credit report.
- The "2" designation indicates a joint credit report.
Creditors
- Creditor information includes:
- Name of the creditor
- Date the account was opened
- Credit limit
- Highest amount owed
Fraud Alerts
- If a fraud alert is present, verify the member's identity by asking questions specific to their credit history.
- Document all verification steps in account/loan notes.
Frozen Credit Reports
- A member must contact Experian to unlock their credit report for 24 hours.
- After unfreezing, the MSR can pull the credit report again.
No Credit Report
- If no credit history is found, ask the member:
- If the lack of history is accurate
- Why they are applying for credit if they have no history
Unverified SSN
- If the SSN is unverified, obtain a copy of the member's Social Security card.
- If the member is on a work visa, obtain work authorization documents.
- Document the verification process in account/loan notes.
Hard vs Soft Pulls
- A hard pull is used for loan applications and impacts credit score.
- A soft pull is used for account opening and does not impact credit scores.
Credit Reports
- A credit report is a summary of your financial history.
- Potential lenders use credit reports to determine a person's creditworthiness.
Credit Agencies
- The three major credit agencies are Experian, Equifax and Transunion.
- Experian is used by Alliance Catholic Credit Union (ACCU).
ECOA Codes
- When a credit report shows "PET," the individual is currently in an active bankruptcy program, and ACCU does not lend to this individual.
- If the credit report shows "DISC" the individual has completed the bankruptcy program and can be approved for a loan.
- A credit report that reads "DISM" means the individual did not complete the bankruptcy program, and can be approved for a loan.
Viewing Credit Reports
- HTML displays the credit report on one page.
- SymForm displays the credit report on multiple pages.
- The date the credit report was pulled is important.
- The Experian score is shown on the report.
- The higher the "0257" score, the higher the risk for bankruptcy.
- Verify that the credit report matches the individual's age.
- Determine if the individual is applying for credit individually or jointly.
Credit Report Items
- Review the credit report for open dates, credit limits, and the highest balance the individual has carried.
Fraud Alerts
- If a fraud alert is on the credit report, verify the member's identity by asking questions specific to their credit history.
- Record in the loan account notes that the member was verified and the questions asked.
Frozen Credit Reports
- To access their credit report, a member with a frozen credit report must contact Experian and request the report be unfrozen.
- The credit report is usually unfrozen for 24 hours.
- ACCU can then re-pull the credit report after the unfreeze.
No Credit Report Example
- If there is no credit history, ask the member if this is accurate and why they are applying for credit today?
- Gather as much information as possible regarding the member's credit background.
Unverified SSN
- If the credit report does not match the provided social security number, make a copy of the member's social security card.
- If the member is on a work visa, obtain their work authorization documents.
- Record in the loan account notes that a copy of the social security card was obtained and why.
Hard Pull vs. Soft Pull
- Hard pulls, which are only for loan applications, are inquiries that affect credit scores.
- Soft pulls, used for account opening, are not inquiries and do not affect credit scores.
Credit Reporting Agency
- ACCU uses Experian as their credit reporting agency.
ECOA
- ECOA stands for Equal Credit Opportunity Act.
BK Score Trending
- A higher score trending towards BK indicates a potential higher risk of bankruptcy.
Hard Pull
- A hard pull is used for applying for credit such as a loan or credit card.
Soft Pull
- A soft pull does not count as an inquiry on a credit report.
Unlocking a Frozen Credit Report
- To unlock a frozen credit report, the ACCU member needs to call the credit reporting agency to unlock their file.
Purpose of a Credit Report
- A credit report provides a summary of an individual's credit history.
PET Code
- A PET code in a credit report indicates a potential error.
Hard Pull vs. Soft Pull
- A hard pull affects your credit score, while a soft pull does not.
Year of Birth on a Credit Report
- The year of birth on a credit report confirms the identity of the individual.
Credit Report & Social Security Mismatch
- If the credit report does not match the provided social security number, investigate and correct the discrepancy.
Importance of SSN Verification
- Verifying the social security number with the credit report is essential to ensure accuracy and prevent identity theft.
Documentation for Discrepancies
- If there is a discrepancy in credit information related to a social security number, provide supporting documentation like a driver's license or passport.
Consequences of Inaccurate Credit Report
- An inaccurate credit report due to a social security number mismatch can lead to denied credit applications, higher interest rates, and difficulty obtaining loans or credit cards.
Resolving Discrepancies with SSN Card
- A member's social security card helps verify their identity and can be used to resolve credit report discrepancies.
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Description
This quiz covers the basics of credit reports, including their purpose and how lenders use them to assess creditworthiness. It also explains ECOA codes related to bankruptcy statuses and how they impact lending decisions. Test your knowledge on viewing formats and essential credit report information.
