K-State Research and Extension
Family and Consumer Science Agent
Southwind District
211 W. Butler
Yates Center, KS 66783
620-625-8620
Did you know that one in five people have an error on at least one of their credit reports according to a study conducted by the Federal Trade Commission? The three national credit reporting agencies are required by the Fair Credit Reporting Act to provide a consumer with a free copy of their credit report each year if they request it. Despite this, according to the most recent data available, only one in three Kansans check their credit report annually and Kansas adults rank at or near the bottom of the 50 states in checking their credit reports each year.
Credit is a tool many of us use for managing our financial lives. We use credit to achieve not only long-term goals, such as higher education and home ownership but also shorter-term goals. A credit report is an explanation of an individual’s credit history. Lenders and creditors use the information in this report when deciding whether or not to lend to us, how much credit to extend and what interest rate to charge. Landlords and utility companies use the information in credit reports to make decisions about deposits. Employers use the information prior to hiring or before allowing employees access to company-sponsored credit cards for company business expenses. Regularly checking your credit reports is one way to identify and guard against identity theft. It is recommended that consumers check their credit reports annually.
K-State Research and Extension has an email program called “Check Your Credit” that will remind you to check your credit report three times during the year on 2/2, 5/5, and 8/8. Through this program, you will also be sent periodic emails with information about how to understand your credit report, correct errors, and use your credit report to your advantage. You will also be sent a tool to help you keep track of what credit bureau you have checked and dates that you did them on.
Take a step towards financial well-being today by signing up for K-State Research and Extension’s “Check Your Credit” email program at https://bit.ly/SouthwindSaves2. For more information contact Cassidy Lutz at [email protected] or by calling 620-625-8620. I am excited to support you as you act to enhance your financial well-being!
Even Warren Buffett had errors on his credit report (which impacted his credit score). Here’s the background:
Fortune / March 31, 2008
The Oracle’s Credit Crisis
WARREN BUFFETT may be the world’s richest man, but you might have a better credit score. When the Berkshire Hathaway CEO recently checked his credit history, his FICO score in one report was 718, slightly below the U.S. median. “I’ve been telling my family for years that my credit was sort of shaky,” Buffett insists. He’s kidding, of course, referring to his self proclaimed stinginess with his kids.
In truth, the score may have been due to an imposter; the report cites 23 missed payments on a $294 loan at an HSBC branch in Nevada, where Buffett says he has never had an account.
A 2004 study found that 25% of reports contain serious errors, which is why watchdogs say low scores shouldn’t be cause to deny a loan. Fortunately for Buffett, he was able to pay for his last car, a Cadillac DTS.
Telis Demis