“Understanding Credit Reports” Classes

Problem:
The “Fair and Accurate Credit Transaction Act” has a provision for free credit reports once a year to everyone. A credit report is one of an individual’s most valuable financial documents. However, it is estimated that over 70% of credit reports have incorrect information which could affect the ability to get credit, insurance, and employment.

Response:
Iowans became eligible for free credit reports in March 2005. A class was developed to inform the public on how to get free copies of credit reports as well as information on how to interpret the information in reports, correct errors, and other information regarding credit.

Impact:
In a six month time period, five presentations were given on credit reports. A total of 92 people attended. An end of meeting evaluation asked participants their plans regarding credit reports as a result of attending the class. A total of 52 evaluations were returned. Participants planned to:

• Get a free copy of my 3 credit reports - 47
• Review my credit reports for errors and possible identity theft - 47
• Call the 1-888-5optout number to remove my name from pre-screened lists - 42
• Get a free copy of one or more of my specialty credit reports - 22
• Close recently opened credit accounts which I do not use - 16
• Other plans

-Be wary of special deals and fine print. Spend responsibly. Build and maintain good credit.
-Try to fix identity theft that I have experienced.
-Order a least one credit score.

Other comments about the class included:

• Very interesting: an eye opener!
• Most useful session of 6 I’ve taken (women’s conference attendee)
• Thank you for your valuable information.
• Very good topics to know.
• Very helpful. Thanks so much!
• Wonderful presentation. T-F quiz was an excellent teaching tool.
• This was very educational. I appreciate the information that was provided.
• All great info! Demystified credit reports which I was previously confused about. Thanks for the great info! Well organized and interesting. I’d love to hear you again go into more detail on this and related topics.

Information on free credit reports is also included in presentations on protecting privacy and general money management classes.

Contact:
Phyllis Zalenski
Family Resource Management Specialist
Iowa State University Extension
605 E. Main, Anamosa, IA 52205
Phone 319-462-2791; Fax 319-462-4572
Email zalenski@iastate.edu

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