(Objective 2: Become familiar with the information on a credit report, how it is used and how to improve a credit report.)
Provide participants with a copy of Handout 4: Sample Credit Report.
Review the main sections of the sample report, highlighting the types of information found and how to read a report:
Identification information Name(s)
- Social Security Number
- Current and former addresses
Employment data
- Current and previous employers length of employment
Public records
- Bankruptcies
Bill paying history
- All loans are listed here
- Unpaid or overdue payments are also listed here. How much and to whom is owed
Inquiries
- Businesses/individuals who have inquired about your credit
Ask participants to review Handout 4: Sample Credit Report and identify something on the report that a landlord would consider negative and something that a landlord would find positive.
Information they may identify:
- One public record is a bankruptcy.
- Has one account with 1 late payment, 4 open accounts, 2 different types.
- Currently in good standing with 4 open accounts.
- Numerous inquiries have been made to the report. Note the 2 different types and why.
Items landlords check on Credit Reports:
- a record of not paying rent
- utilities paid on time (utilities may or may not report)
- pattern of unpaid bills
- number of applications to other landlords
- addresses consistent
- Social Security number matches
