Credit Report Information PDF

Credit Report Information: Credit Score Ranges Most FICO and VantageScore models range from 300 to 850. Higher scores indicate lower risk to lenders. Industry-specific FICO scores can range from 250 to 900. Credit scoring models often categorize scores into smaller ra...

Credit Report Information: Credit Score Ranges Most FICO and VantageScore models range from 300 to 850. Higher scores indicate lower risk to lenders. Industry-specific FICO scores can range from 250 to 900. Credit scoring models often categorize scores into smaller ranges (e.g., poor, fair, good, excellent). Credit Score Range Categories & Implications Poor (300-579): Difficulty qualifying for loans and credit cards; higher fees and interest rates if qualified. Fair (580-669): Easier loan and credit card qualification with decent terms, especially at the higher end of the range. Good (670-739): Qualification for loans and credit cards with low fees and interest rates. Very Good (740-799): Qualification for most lenders' credit accounts with low advertised interest rates. Excellent (800-850): Likely already receiving best offers; provides additional leeway if the score fluctuates. Factors Influencing Credit Scores (FICO) Payment History (35%): On-time payments are crucial. Late payments, collections, and bankruptcy negatively impact scores. Amounts Owed (30%): Outstanding balances and credit utilization ratio (balances/credit limits) significantly affect scores; lower utilization is better. Length of Credit History (15%): Older accounts generally improve scores. Credit Mix (10%): A mix of revolving (credit cards) and installment (loans) credit can be beneficial. Recent Credit Applications (10%): Many new credit applications (hard inquiries) can slightly lower scores. Factors Influencing Credit Scores (VantageScore)  Payment History: Extremely influential; on-time payments are key. Total Credit Usage: Highly influential; low credit utilization is beneficial. Credit Mix and Experience: Highly influential; diverse credit history and experience matter. New Accounts Opened: Moderately influential; too many new accounts can negatively impact scores. Balances and Available Credit: Less influential compared to other factors. Checking Credit Scores Various sources offer credit score checks. The score may vary depending on the scoring model and credit report used. Free sources may provide limited information; paid services may offer more comprehensive reports. Personal Information Personal data reported to Experian can come from various sources, causing potential variations, such as: Name variations (e.g., Lillie Consumer, Lilly Consumer) listed under "Also Known As." Social Security number variations displayed, but the actual number is not shown for security reasons. Addresses associated with accounts may include work or friend's addresses without affecting creditworthiness. Year of birth, phone numbers, and names of joint account holders or co- applicants may also be reported. Employment details provided by creditors do not reflect full work history and do not impact credit scores. Account Information Accounts include revolving credit and installment loans such as credit cards and mortgages. Creditors are not obligated to report account details, leading to potential inconsistencies among credit bureaus.  Key account details include: Account name, number (partially hidden for security), status (open, closed, etc.), and date opened. Account type (e.g., installment loan, credit card), credit limit, original loan amounts, and payment history. Payment status codes indicate whether payments are on time or overdue, impacting credit scores. Collections Accounts overdue for a significant period may be sent to collections, which negatively affects credit scores. Collection accounts are identified by the original creditor's name and include details like the original loan amount, balance owed, and status date. Credit Inquiries Credit inquiries track who accessed your credit report and remain for up to two years. Hard inquiries occur when applying for credit, potentially affecting scores, while soft inquiries do not impact scores and occur for non-lending checks. Inquiry details include business name, type, inquiry date, and removal date. Public Records The only public record that appears on credit reports is bankruptcy. Chapter 7 bankruptcy discharges debts, while Chapter 13 requires a repayment plan. Chapter 7 records are removed after 10 years; Chapter 13 after 7 years. Disputing Credit Report Information Consumers have the right to dispute incorrect information on their credit reports. Common dispute reasons include errors from creditors or fraud. Disputes can be initiated online, by mail, or over the phone with Experian. The dispute process typically resolves within 30 days, with updates available through your Experian account. Experian Credit Report It is important to review Credit Reports for accuracy of information, fraud, and credit worthiness. You can also utilize the Credit Report to compare savings opportunities for the member. Fair Isaac Risk Model v2 (Credit Score) Lists the members credit score. Also lists factors influencing the score. Score range ??? - 850. Bankruptcy Score Lists the members Bankruptcy score or risk of Bankruptcy. Lower score is better. Income Insite Estimates the wage income of a member based on factors built by Experian models. Applicant Information The applicants SSN, Year of Birth, and current/previous addresses are listed here. Trades All trade-lines, or liabilities open or closed in the applicants name. Messages There are messages listed throughout the Credit Report. One section notifies if there are Military Lending Act (MLA) flags on the report. Once section covers any fraud notifications. Review Credit Report Verification First determine the accuracy of the credit report by comparing to the information the member provided. Including identification verification. Fraud Once you confirmed the accuracy of the members information, check for fraud alerts on the report. These should be located in the Messages sections on the report. If fraud is reported, contact Credit Solutions. Preliminary Credit Review Lending uses multiple factors to determine approval, but the credit score is most important. You can get an initial idea on where the application might fall on the rate sheet based on the credit score. Savings Opportunities Using the information provided under the Trades, you can determine if there is an opportunity for the member to save money by moving that loan to ACCU. This includes refinance, balance transfers, consolidation, etc. The report gives you a great opportunity to discuss different products that may benefit the member, aside from the loan they are currently applying for. Authorized Users Any negative performing authorized user tradeline will be excluded from all Experian generated risk scores (e.g., FICO). Authorized User trades with a positive status will continue to be available for scores.