Your Money, Your Goals Booklet Research

Confused about credit?
Make it work for you.

Your Money,
Your Goals
PROTOT Y PE

Who is the CFPB?
The Consumer Financial
Protection Bureau works on
your behalf. We want you
to have the information you
need to make good financial
decisions for yourself and for
your family.

Weʼre here for you. We are a
government agency that was
created by Congress in 2010 in
response to the financial crisis.
Weʼre taking action. We work
to make sure banks, lenders,
and others operate fairly.
Weʼre committed to you. We
are committed to helping
people enjoy safer, better
financial lives.

Confused about credit?
Credit can be a helpful tool when it comes
to reaching your goals. But credit can
also seem confusing. Understanding why
it matters and knowing how to build a
positive credit history can help you get and
manage credit.
We created this set of tools to answer your
biggest credit questions: to help you figure
out where you stand and what you can do
about it.
You can take control of your credit;
we can help.
Make it work for you.
For more information, refer to the full
”Your Money, Your Goals” toolkit at
cfpb.gov/your-money-your-goals

YOUR MONEY, YOUR GOALS

The Consumer Financial Protection Bureau has
prepared this material as a resource for the public.
This material is provided for educational and
information purposes only. It is not a replacement for
the guidance or advice of an accountant, certified
financial advisor, or otherwise qualified professional.
The CFPB is not responsible for the advice or
actions of the individuals or entities from which you
received the CFPB educational materials. The CFPBʼs
educational efforts are limited to the materials that
CFPB has prepared.
This tool may ask you to provide sensitive
information. The CFPB does not collect this
information and is not responsible for how your
information may be used if you provide it to others.
The CFPB recommends that you do not include
names, account numbers, or other sensitive
information and that users follow their organizationʼs
policies regarding personal information.

What do I do
if Iʼve been
a victim of
identity theft?

Should I use
credit to buy
this?

Who else can
I turn to for
help?

IDENTITY THEFT
& FRAUD

CHOOSING
CREDIT

RESOURCE
CARDS

How do I get
a free copy
of my credit
report?

How do I
make sure my
credit report is
accurate?

How do I fix
errors in my
credit report?

CREDIT
REPORT

CHECKING FOR
ERRORS

CORRECTING
ERRORS

Tool title
question
placeholder?

How can I
improve my
credit scores?
CREDIT
SCORES

YOUR MONEY, YOUR GOALS

8

Tools if youʼre
concerned
about credit.

What steps
can I take to
get or keep
good credit?
3 THINGS

IDENTIT Y THEFT & FRAUD

What do I do if Iʼve been a
victim of identity theft?

A step further
File a report with your local
police department. Go to your
local police office with:
§§ A copy of your FTC Identity
Theft Report
§§ A government-issued photo ID
§§ Proof of your address
§§ Any other proof you have of the
theft (like bills or IRS notices)
§§ FTCʼs memo to law
enforcement available at
identitytheft.gov

This tool will help you:

Know the facts:

§§ Figure out what you
need to know and do
to recover from identity
theft or fraud

Identity theft occurs
when someone steals
your identity to commit
fraud. This could mean
using personal information
without your permission,
such as your name, Social
Security number, or credit
card number.

§§ Find resources that can
help you fix the situation
and protect your identity

To learn more about
identity theft and what to
do next, visit
identitytheft.gov

Start with one question:

What information are you worried was stolen?
YOUR MONEY, YOUR GOALS

Ask for a copy of the police
report. You may need it to
complete other steps, such as
contacting credit reporting
companies.

Freeze them out. You can also
place a ”security freeze” on your
credit report, which prevents
new creditors from accessing
your credit file and others from
opening accounts in your name,
until you lift the freeze. States
have their own rules about credit
freezes and how much you pay
for them, so be sure to ask about
charges before placing a freeze.
Protect your identity. Keep
an eye out for identity theft by
reading your statements from
credit card companies, banks,
and credit unions. Also, check
your credit reports each year for
suspicious activity.
To learn more about checking
your credit reports, try the Credit
Report tool.

Take action if youʼve been a
victim of identity theft or fraud.







First, call the companies
where fraud occurred.

Then, place a fraud alert
on your credit report.

Next, report the theft to the
Federal Trade Commission.

What youʼll need:

What youʼll need:

What youʼll need:

¨¨ Account or card numbers, if you
know them

¨¨ Your username and password or
credit file information for Equifax,
Experian, or TransUnion

¨¨ Type of information stolen and how
that information was used

¨¨ Any usernames, passwords, and PIN
numbers for your accounts

¨¨ Proof of your identity (like your Social
Security number)

What to do:

What to do:

¨¨ Explain that your identity was stolen

You need to contact only one of the big
three consumer reporting companies to
place an alert.

¨¨ Ask them to close the accounts or
remove fraudulent charges
¨¨ Change usernames, passwords, and
PIN numbers for your accounts
TIP: Consider changing your passwords
for other accounts that may have also
been affected, like your email account or
online bank accounts.

§§ Equifax: Call 1-800-525-6285 or visit
equifax.com
§§ Experian: Call 1-888-397-3742 or visit
experian.com
§§ TransUnion: Call 1-800-680-7289 or
visit transunion.com

¨¨ Your personal information (including
name, birthdate, and address)
¨¨ Any information available on the
person who stole your identity
¨¨ Some additional information on
actions youʼve already taken

What to do:
Visit the Federal Trade Commissionʼs
(FTC) Fighting Back Against Identity
Theft website at identitytheft.gov. It
can help you build a step-by-step plan,
including reporting the fraud to your
local police.

CHOOSING CREDIT

Should I use credit to
buy this?

A step further

Keep in mind

Look for red flags. When
shopping for financial products
and services, be on the lookout
for red flags. If you check one or
more of the boxes below, take a
closer look at the offer.

Credit can help you buy
something now, but may cost
more in the long run. Before
using credit for a purchase, try
adding 20 percent to the price
to decide if itʼs worth spending
more to buy it now.

** You are being pushed into
making a big purchase
immediately or taking out
loans you donʼt want or canʼt
afford
** No one will give you clear
information in writing - even
when you ask for it

This tool will help you:

What youʼll need:

§§ Think about upcoming
purchases that may
require credit

** Any documents or
information you have
on your loan or credit
card, like your monthly
payment amount,
interest rates, and fees

§§ Weigh the costs and
risks of using credit
and make an informed
decision
§§ Be on the lookout for
common red flags or
suspicious offers

Start with one question:

What are you thinking about buying?
YOUR MONEY, YOUR GOALS

** You are asked to sign a
contract with blank spaces to
be filled in later
** A lender is insisting or
implying that you must buy
unnecessary items, such
as additional insurance,
unneeded warranties, or
monitoring services
** The promises made to you
by a salesperson, including
interest rates, are not in the
papers youʼre asked to sign
T I P: Feel free to tell salespeople:
”I donʼt make financial decisions
without first checking with
my
. Iʼll contact you if Iʼm
still interested.” Fill in the blank
with whomever you choose.

Whatʼs the original price?

$
What is 20 percent of that?

$
Add those together. This is the
estimated total cost if you use
credit:

$

Use this worksheet to weigh the
costs and risks of using credit.
Weigh the risks of using a credit card or loan.
Think about your
purchase.
What are you thinking about
buying?

What are the consequences of not making your payments?
¨¨ Iʼll lose my
¨¨ Theyʼll increase my interest rate to

percent

¨¨ Theyʼll charge me retroactive interest
¨¨ My monthly minimum payment will increase
¨¨ Other:

What will this help you do or
accomplish?

Review the costs of using a credit card or loan.
How much will your loan payment or
minimum monthly payment be?

What interest or fees are associated with
borrowing this money?

$
What are all of your options for
paying for it?
(check all that apply)
¨¨ Cash or savings
¨¨ Credit card
¨¨ Loan
¨¨ Iʼm not ready to buy
this right now

Can you comfortably make this payment
on time each month?
¨¨ Yes

%
$
$

¨¨ No
¨¨ Iʼm not sure

Iʼll pay for this purchase with:
¨¨ Cash or savings

¨¨ Credit card

¨¨ Loan

¨¨ Iʼm not ready to buy
this right now

RESOURCE CARDS

Who else can I turn to for
help?

A step further
Protect yourself from companies
promising a quick solution to
repair your credit. If you are
considering using a credit repair
company, avoid doing business
with companies that:
§§ Demand payment upfront
§§ Offer you deals that sound too
good to be true
§§ Canʼt answer questions or
explain the specifics of services
they are offering you
§§ Hold back information about
your arrangement or provide
misinformation

This tool will help you:

What to do:

§§ Find resources that can
help you based on your
unique situation and
needs

1. Add any relevant local
resources
2. Photocopy and cut into
eight referral cards
3. Keep the cards in your
wallet or a handy place

Start with one question:

Is there anything else youʼre concerned about?
YOUR MONEY, YOUR GOALS

§§ Ask you to misrepresent
information, such as trying to
get you to invent a ”new” credit
identity









Iʼm a servicemember

Iʼm a minor or have been
in foster care

Iʼm a student or have
student loans

Need help with...?

§§

§§ To help protect minors from
credit issues, visit:
files.consumerfinance.gov/f/
documents/201405_cfpb_
tipsheet_youth-good-credit_
RS.pdf

§§

§§

§§

§§

§§ To learn more about your
options for repaying student
loans, visit:
cfpb.gov/paying-forcollege/repay-student-debt

§§ Have money questions?
Visit ”Ask CFPB”:
cfpb.gov/askcfpb

§§ To learn more about
fraud protection for
servicemembers, visit:
files.consumerfinance.
gov/f/201508_cfpb_
fraud-protection-toolsto-help-safeguardservicemembers.pdf

§§ To help protect foster care
youth from credit issues, visit:
files.consumerfinance.
gov/f/201405_cfpb_tipsheet_
youth-foster-care-goodcredit.pdf





I am incarcerated or reentering my community

Iʼm a person with a
disability

I have additional credit
questions

Need help with...?

§§

§§

§§

§§

§§ To learn more about
protecting credit while
in the criminal justice
system, visit:
cfpb.gov/about-us/blog/
protecting-ones-creditwhile-criminal-justicesystem

§§

§§ To find credit resources for a
person with a disability, visit:
leadcenter.org

§§ To find a nonprofit credit
coach or counselor, visit:
justice.gov/ust/list-creditcounseling-agenciesapproved-pursuant-11usc-111
§§ To find financial tools in other
languages, visit:
cfpb.gov/language

§§

§§

CREDIT REPORT

How do I get a free copy
of my credit report?

A step further
What will I be asked for when I
request my report?
You will be asked to provide
some information to verify your
identity. This includes your Social
Security number and previous
addresses (if youʼve moved in the
last two years).

There is more than one kind
of report. Your credit report is
just one of many different types
of ”consumer reports.” Other
types of consumer reports
include banking history reports,
background checks, and utility
payment reports.

Also, be ready to answer a series
of security questions that are
meant to be hard for anyone but
you to answer, such as:

To learn more about specialty
consumer reporting, visit
cfpb.gov/askcfpb/1115

§§ Whatʼs the amount of your
monthly mortgage or car
payment?

This tool will help you:

Know the facts:

§§ Get free copies of your
credit reports

Your credit report is a
record of some of your
bill-paying history, public
record information, and
inquiries by creditors into
your credit history. It does
not tell you your scores.

§§ Pick due dates for
yourself to request your
free credit reports
§§ Figure out what to do
once you receive your
reports

Credit reports may be
used by banks, landlords,
and credit providers. Itʼs
important that you get your
free credit reports each
year and check for errors.

Start with one question:

Have you ever checked your credit report?
YOUR MONEY, YOUR GOALS

§§ What were your previous home
addresses?
T I P: Each credit reporting
company uses different security
questions. If you find you canʼt
answer a companyʼs questions,
try requesting your report from
another company.

Follow the three steps below to
make sure that the information
included in your report is
accurate.
Step 1: Request a free
copy of your credit report
Step 2: Read and review
your credit report (try the
Checking for Errors tool)
Step 3: Dispute any errors
that you find in your credit
report (try the Correcting
Errors tool)

Make a plan to get your credit
reports for free each year.

TIP: AnnualCreditReport.com collects your
credit report information from each of the
three biggest credit reporting companies:
Equifax, Experian, and TransUnion.

Request a free copy of your credit report.

Set a date and mark your calendar.

AnnualCreditReport.com is the only federally authorized
central source for free credit reports.

You have a right to get a free report from each of the three
biggest credit reporting companies once every 12 months.

How do you plan to request your reports?

When do you plan to request your reports?

** Online

Visit AnnualCreditReport.com and
follow directions to request your free
credit report.

** By phone

Call 877-322-8228 and request your free
credit report.

** By mail

Download and complete the Annual Credit
Report Request Form:
consumer.ftc.gov/articles/pdf-0093annual-report-request-form.pdf
Include two copies of proof of residence
(like your driver’s license or utility bill) and
one form of Social Security verification
(like your Social Security card or Medicare/
Medicaid card), and mail to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

If you want to check if any of your files have errors, then
choose an easy-to-remember date to request your three free
credit reports at the same time, like your birthday. If you want
to check your files more frequently throughout the year, then
choose up to three dates to request your reports separately.
Iʼll commit to requesting my three free credit reports.
On this date:

From this company:

1

** Equifax
** Experian
** TransUnion

2

** Equifax
** Experian
** TransUnion

3

** Equifax
** Experian
** TransUnion

CHECKING FOR ERRORS

How do I make sure my
credit report is accurate?

This tool will help you:

What youʼll need:

§§ Look at the information
on your credit report
§§ Spot errors you need to
correct

** A copy of your credit
report (you can use the
Credit Report tool to
get a free copy)

§§ Figure out which errors
you want to correct

** A pen or highlighter to
mark any errors you find
TIP: Use the Correcting
Errors tool if you find
incorrect info and the
Identity Theft tool if you
suspect that youʼve been a
victim of identity theft.

Start with one question:

Are there things in your credit report that are
unclear or that you donʼt understand?
YOUR MONEY, YOUR GOALS

A step further
How do banks, lenders, and
credit providers use this
information?
Companies that look at credit
reports believe that how youʼve
handled credit in the past is a
good predictor of how youʼll
handle it in the future. This is
why itʼs important to check your
reports for errors and correct
errors you find.
How long does negative
information stay on your report?
In general, negative information
(like late or missed payments) can
only remain on your report for up
to seven years. However, there
are some exceptions:
§§ Bankruptcy (10 years)
§§ Civil suits and judgments,
including arrest records
(7+ years)
§§ Criminal convictions
(never removed)
To learn more about removing
information from your report,
visit cfpb.gov/askcfpb/1121

What do employers and
landlords see when they do
credit checks and background
checks?
Employment reports often
include credit checks, criminal
background checks, public
records – such as bankruptcy
filings and other court
documents – and information
related to your employment
history.
To learn more about employer
records, visit
cfpb.gov/askcfpb/1823

Use this checklist to check the
information in your credit report.
Check your report for common errors
Sections
Header and
identifying
information

Guiding Questions
¨¨ Are your name (including spelling), Social Security
number, current telephone number, and current
address all correct?



Use the checklist to review the five
sections of your credit report.



Highlight or circle things in your report
you think may not be correct. List them in
the spaces below.

List errors to dispute
Dispute 1:

¨¨ Are your previous addresses listed correctly?
¨¨ Is any employment history listed correct?
Public record
information

¨¨ Is all money-related public record information listed
correctly (like bankruptcies, judgments, or tax liens)?

Collection
agency account
information

¨¨ Are any accounts youʼve had in collections listed
correctly?

Credit account
information

¨¨ Review each item in this section (may be called a
trade account). Do these belong to you?

¨¨ Is the status of each account listed correctly?

Dispute 2:

Dispute 3:

¨¨ Is the status of each account listed correctly?
¨¨ Are there accounts where youʼre listed as an
authorized user, co-signer, or joint owner? Is the
listing accurate?

Dispute 4:

¨¨ Are accounts that youʼve closed listed as ”closed by
the consumer”?
Inquiries made to
your account

¨¨ Are all ”inquiries” or times when youʼve applied
for credit and a lender reviewed your credit report
correct? To learn more about inquiries, visit:
cfpb.gov/askcfpb/1317

Dispute 5:

CORRECTING ERRORS

How do I fix errors in my
credit report?

This tool will help you:

Know your rights:

§§ Figure out who you
should contact to correct
errors on your credit
report

Errors on your credit
reports, or fraud caused
by identity theft, can make
borrowing more expensive
or prevent you from
getting credit in the future.

§§ Write a letter explaining
these errors
§§ Remove or change
incorrect information so
it doesnʼt hurt you in the
future

You donʼt have to pay
a company to dispute
errors for you. Under the
Fair Credit Reporting Act,
you have a legal right
to dispute credit history
errors yourself for free.

Start with one question:

Did you find any errors in your credit report?
YOUR MONEY, YOUR GOALS

A step further

Additional resources

When will I hear back about my
dispute?
The company generally has
30 days to investigate your
claim. After the investigation is
complete, the credit reporting
company should send you the
results within five business days.

Dissatisfied with the outcome of
your dispute?
You can submit a complaint with
the CFPB at cfpb.gov/complaint
You can also file a reinvestigation
request with both the credit
reporting company and the
company that provided the
inaccurate information.

Use this worksheet to help correct
errors you find in your credit report.
Credit Report Date:
Credit Report Number:



Complete one worksheet for each error you
find in your credit report.



Download the dispute letter template from
cfpb.gov/askcfpb/1303 and complete it
using the information you write below.



Mail your dispute letters to the credit
reporting company and the company that
provided the inaccurate information.
TIP: You can also submit your dispute
online through the credit reporting
companyʼs website.

Dispute #:







What information is inaccurate? Whatʼs
inaccurate about it?

What are you asking the company to
change or remove from your report?

What documents (like copies of
receipts or letters) can you attach to
show that the error is incorrect?

Explain the error.

Request a change.

Gather the proof.

§§
§§
§§
§§
§§

TIP: Be as specific as you can. If possible,
include dates or names that could help
show that the information is inaccurate.

TIP: To make it easier to find the items
youʼre correcting, include a copy of the
part of your report that has the error
(never send originals!), with the error
marked or circled.

CREDIT SCORES

How can I improve my
credit scores?

Keep in mind
Not sure where to find your
credit scores?
§§ Check your credit card or
other loan statement. Many
major credit card companies
and some auto loan companies
provide credit scores to their
customers.
§§ Talk to a nonprofit coach or
counselor. Visit
justice.gov/ust/list-creditcounseling-agenciesapproved-pursuant-11-usc-111
Canʼt find your scores this way?
Keep these tips in mind as you try
other options:

This tool will help you:

Know the facts:

§§ Understand the factors
that influence your credit
scores

A credit score is a
three-digit number that
predicts how likely you
are to pay back a loan on
time, primarily based on
information from your
credit reports.

§§ Identify things you can
do to increase your
credit scores
§§ Learn how to access your
credit scores
§§ Find products that will
help you build your
credit history responsibly

Creditors look at one or
more of your scores when
you apply for a new credit
card or loan to estimate
how likely you are to pay
back money you borrow.

Start with one question:

Do you currently use credit cards or have loans?
YOUR MONEY, YOUR GOALS

§§ Use an online credit score
service. Be sure you know
what youʼre signing up for,
how much it really costs, and if
theyʼll use your information to
market products to you.
§§ Buy a score. Keep in mind that
this might be an educational
score, and it may be different
from the score a lender uses.
You can also buy your FICO
credit score at myfico.com
T I P: If you donʼt have enough
credit history in your file, you
may not have a credit report or
scores. To find products that can
help you build your credit history
responsibly, visit
files.consumerfinance.gov/f/
documents/201612_cfpb_credit_
invisible_checklist.PDF

There is no ”one” credit score.
There are many scores and
scoring formulas available to you
and lenders. The credit score
you get from a company may
be different from the one that
someone uses to make credit
decisions about you.
To learn more about different
credit scores and where they
come from, visit
files.consumerfinance.gov/f/
documents/201702_cfpb_creditscore-explainer.pdf
Credit can be complicated. Ask
for help when you need it.
Iʼll reach out to the following
financial coach or counselor:

Complete this worksheet to see
whatʼs behind your credit scores.
Yes

Do you sometimes miss payments?
Do you often get close to your
credit limit or ”max out”?
Do you currently have a balance on
your credit cards or loans?
Have you recently opened any
credit accounts?
Do you have any judgments,
bankruptcies, or evictions?
Do you have any accounts
in collections?

¨¨

¨¨

¨¨

¨¨

¨¨

¨¨




Answer the questions below.
When you answer ”Yes” to a question,
read across to see tips for improving your
scores on the right.

No

Tips for improving your scores

¨¨

Pay your bills on time, every time. ”On time”
means the payment arrives by the due date.
You can ask the company to change your
due date to fit your income cycle.

¨¨

If you have a line of credit, donʼt get too
close to your credit limit. Credit scores
consider how close you are to being ”maxed
out.” Try to stay well below your total limit.

¨¨

If you use credit cards, try to pay your
balances off each month. Youʼll build credit
by using your card and by paying it on time.
Think about setting up text alert reminders.

¨¨

Keep it up. Your scores are partly based on
experience over time. The longer you have
credit and pay on time, the more proof there
is to show youʼre good at handling credit.

¨¨

Be sure negative information listed on your
credit report is accurate. If itʼs not accurate
or if itʼs listed multiple times, submit a
dispute with the credit reporting agency.

¨¨

Donʼt ignore debt collectors. There are
different ways to respond to debt collectors.
To help you make a plan and know your
rights, visit cfpb.gov/askcfpb/1695.

3 THINGS

What steps can I take to
get or keep good credit?

A step further
Track your progress. At the end of each week, think about the
progress youʼve made and what you can do to improve your system.
Week 1

Week 2

What
did you
accomplish
this week?

What will
you do next
week to
improve?

This tool will help you:

Keep in mind:

§§ Identify simple things
you can do in your daily
life to manage your
credit

Building and maintaining
good credit can sometimes
feel complicated and
overwhelming. By creating
a system that works with
your everyday life, you can
gain control of your credit
situation.

§§ Figure out a system that
works for you
§§ Track your progress

Donʼt be afraid to ask
for help when you need
it. Refer to the Resource
Cards tool to find
additional support.

Set a monthly system. Now that youʼve identified things you can do
in your everyday life to manage your credit, consider what you can do
each month to build, rebuild, or protect your credit.
Each month, I will: (pick one)
** Make my monthly minimum loan and credit card payments on time
** Make my monthly bill payments on time
** Put my monthly payment due dates in my calendar
** Set up text alerts or reminders for my monthly payments
** Other:
Make a promise to yourself and take action on your rules. I will use
my monthly system to help me achieve my credit goals.

Start with one question:

How do you use credit in your daily life?
YOUR MONEY, YOUR GOALS

(sign here)

Come up with a system to help
you build or keep good credit.
Choose 3 strategies to try:




Pick three credit strategies to try.



Share your system with someone who will
hold you to it, and put this page on your
fridge or somewhere youʼll see it often.

Write down how youʼll do those three
things in your daily life - this is your system.

How Iʼll make these 3 strategies work for me:

** Pay cash for purchases under $20
** Pay on time, even if it means I can only
make the minimum payment
** Donʼt use credit for
** Shred any credit card offers I donʼt plan to
accept
** Before using credit for a purchase, add 20
percent to the price to decide if itʼs worth
spending more to buy it now using credit
** Know my credit limit and keep my use well
below that limit
** Sign up for text alerts on my accounts
** Set up automatic payments
**

**

Iʼll ask this person to help me stick to my system:

BONUS CARD

1. Look at the board.

My credit
picture

2. Circle the top 3 things you want
to get or do in the next year.
T I P: A strong credit history can
be helpful when it comes to
getting the things that are most
important to you.

House

Cell phone

Credit card

Small
business

Car

Job

Other

Internet or
cable

Other

Furniture or
appliances

Travel

Other

Electronics

Apartment

Education

Insurance

Medical
treatment

Gifts

Childcare

Utilities

YOUR MONEY, YOUR GOALS

For more information, service providers can refer
to the full ”Your Money, Your Goals” toolkit online
at cfpb.gov/your-money-your-goals
If youʼre having a problem with a bank
account, credit card, student loan, consumer loan,
or other financial products or services you can
submit a complaint with the CFPB at
cfpb.gov/complaint
For answers to commonly asked questions you
might have about other money matters, visit
”Ask CFPB” at cfpb.gov/askcfpb
Mail
Consumer Financial Protection Bureau
P.O. Box 4503, Iowa City, IA 52244
Toll-free phone
855-411-2372
Monday–Friday
8:00 a.m.–8:00 p.m. (EST)
TTY/TDD phone
855-729-2372
Fax
855-237-2392