Credit Report
What are 2 out of 3 credit bureaus, which are the companies that collect personal financial data to create credit reports?
Experian
Equifax
TransUnion
What is a credit score?
a number that represents your creditworthiness.
What is identity theft?
when someone uses your personal information without permission to commit fraud or other crimes
What is the purpose of insurance?
To transfer risk from one person to a company
What is a premium?
The amount you pay to buy an insurance policy, usually paid each month
What is a credit report?
a detailed record of a person’s credit history, used by lenders, landlords, and sometimes employers
What is the range for credit score? And which number is the best credit score?
300-850
850 is the high end
Identity theft can impact someone's life by...
Can be left liable for costly medical payments and other purchases
Can have tax refunds intercepted
Might be denied a loan because your credit score was ruined
You can receive collections letters for expenses you didn’t incur
What are 3 factors impact auto insurance premiums?
Age
driving record (texting while driving, DUIs)
location
type of car
safety features
how often you drive
What is a deductible? During this time, what does your insurance usually "cover"?
Deductible is the amount you have to pay until your insurance actually starts helping with bills.
However, preventative care like check-ups and vaccinations are covered/free.
What are 2 examples of things included on your credit report?
Payment history
Current balances on your loans
When you opened your credit accounts
hard and soft inquiries
bankruptcies, collections, liens(collateral)
Why do credit scores matter?
A higher credit score means you will be more likely to be approved when applying for credit, more likely to get lower interest rates, and more likely to have positive outcomes when applying for things like a job or telecommunications services (phone, TV, internet)
The top 2 forms of identity theft are...
credit card account creation and checking account takeover (So keep an eye on your credit report and your checking accounts!)
You're heading outside to go to school. You and your guardian see your car was broken into and had the radio stolen. What insurance coverage will help you in this situation?
Comprehensive:
Covers non-collision damage (theft, weather, vandalism).
What is the difference between in network and out of network?
In network means a healthcare provider (doctor, hospital, lab) has signed a contract with your insurance plan and is usually less expensive and has more options
Out of network has higher out-of-pocket costs, potential balance billing, and often no coverage at all except in emergencies.
What are 2 examples of companies that might look at your credit report?
1. credit card companies
2. insurance
3. employers
4. telecommunications(internet)
5. public utilities (water, gas, electricity)
6. government agencies and courts
7.landlords
8. assisted living and nursing homes
What are the top 2 factors impacting your credit score? And what actions can you take to keep your score higher based on those 2 factors?
Payment History (35% of score) Pay your bills on time!
Credit Utilization (30% of score)
Use only 30% of your limit each month for best credit score
What are 3 ways to protect yourself?
Use strong, unique passwords
freeze credit
Enable two-factor authentication
Avoid clicking suspicious links
Shred sensitive documents
Monitor bank and credit accounts regularly
Check your credit report frequently
Whoopsie! You were distracted and made a left hand turn right into an oncoming car in an intersection! Your car and their car was damaged. Luckily, everyone is okay. What insurance coverages(2) can cover the damage to THEIR car and YOUR car?
their car: property damage liability
your car: collision coverage
What happens after you meet your deductible? Is there a limit to how much you pay for medical expenses?
After you meet your deductible, your insurance company splits the bills with you. You still pay (co-insurance) but it usually only 20% of the bill. You do this until you reach your Out of Pocket Maximum.
Why should you check your credit report and how can you do so for free?
1.To monitor how different factors are impacting your FICO score
2.To check your credit report for accuracy/ errors
Free reports on FreeCreditReport.com and through the 3 credit bureaus.
What are the 3 out of 4 main ways to view your credit score?
Credit bureaus
bank, banks apps
Nonprofit credit counselor
Credit score service (CreditKarma)
What should you do if you think your identity has been compromised?
(Secure any accounts first then)Make a report on the FTC(federal trade commission)
And then go to identitytheft.gov Generate the letters and forms you need
Track your progress
Keep detailed records of people you talked to
Personal Injury Protection: covers your medical bills even if you were at fault
Uninsured/Underinsured Motorist Coverage: Protects you if the other driver lacks insurance.
If you have medical debt and cannot pay it off in full right away, what can you do? What should you NeVEr do?
Negotiate a payment plan
look for financial assistance
apply for medicaid to make retroactive payments
NEVER put the debt on credit cards or take out loans