UPDATED 2024 HUD Housing Counselor Exam- Module 1.2: Financial management/credit SOLUTIONS 100%

A credit report contains information that each credit bureau has on a consumer. Info collected by a credit bureau includes details such as: - ANSWER -history of accounts -number of inquiries -number of collections What does the personal information section of a credit report include? - ANSWER name, social, addresses, phone numbers, and employers What does the account/tradeline info section of a credit report include? - ANSWER payment history, account dates, credit limits, and balances owed What does the public records section of a credit report include? - ANSWER bankruptcy, judgements, tax liens, and wage garnishments What does the inquiries section of a credit report include? - ANSWER requests initiated by a company or person for a consumer's credit profile information Which section of a credit report will contain employer details? - ANSWER personal information Which section of a credit report will contain info about a student loan? - ANSWER account info Which section of a credit report will contain court info such as bankruptcy? - ANSWER public records Which section of a credit report will show recent attempts to open a credit card? - ANSWER inquiries Which section of a credit report will contain info about how to correct inaccuracies? - ANSWER consumer rights What is a FICO (fair isaac corporation) score? - ANSWER most commonly used scoring model for lending and credit decisions in the US. Scores range from 300 to 850- higher is better. FICO score form three credit reporting agencies- Equifax, Experian, and Transunion What percentage of a credit score is based on account history? - ANSWER 35% What percentage of a credit score is based on the amount of credit owed? - ANSWER 30% What percentage of a credit score is based on the length of credit history? - ANSWER 15% What percentage of a credit score is based on new credit? - ANSWER 10% What percentage of a credit score is based on types of credit used? - ANSWER 10% What website can you go to for a free yearly credit report? - ANSWER What is a secured credit card? - ANSWER allows consumers to build credit history. requires an upfront deposit (usually $300- $1000) and typically provides a credit limit equal to the deposit. allows the consumer to build credit history through regular monthly payments Fair Credit Reporting Act (FCRA) - ANSWER -you have the right to know what is in your file -you have the right to dispute incomplete or inaccurate info