ECONOMICS REPORT - Many Americans Are Watching Their Credit

ECONOMICS REPORT - Many Americans Are Watching Their Credit Reports
By Mario Ritter

Broadcast: Friday, August 19, 2005

I'm Barbara Klein with the VOA Special English Economics Report.

 
 

More and more Americans are reading their own credit report. Credit reports are used by lenders to decide how risky¹ it would be to offer a loan or credit to an individual.

The report holds information about a person's current loans and credit-card debt. It records late payments of bills and any unpaid² loans. It all adds up to a credit history. These days, though, lenders often welcome people with bad credit histories. They are charged higher interest rates and other loan costs.

Some Americans want to read their credit report to know if they have been a victim of identity theft. They can see if any loans or credit cards have been opened in their name with stolen personal information.

Another reason is that credit reports are not always correct. They might contain wrong information or old information.

Before nineteen seventy-one, Americans could not see any of this information. Then Congress passed a law to give citizens the right to see and dispute their credit reports. Over the years, new rights have been added to the Fair Credit Reporting Act.

One change, in two thousand one, permits people to see their FICO [FYE-coh] score. FICO is short for the Fair Isaac Corporation. That company developed a way to represent credit risk with a number. The number is based on information gathered by credit reporting agencies.

Fair Isaac says many lenders not just in the United States but around the world use its technology to create credit scores. But lenders are not the only ones interested in these numbers. As of May, the company says it sold ten million credit scores to individuals.

People with high scores can expect lower interest rates for loans. The idea is that the higher the score, the lower the risk. Paying bills on time and paying off credit-card debt improves credit scores.

There are three main credit reporting agencies. Two companies are Equifax, in Atlanta, Georgia, and TransUnion in Chicago, Illinois. The third, Experian, is owned by a British company.

These agencies will sell people a copy of their credit report. But Congress last year again amended³ the Fair Credit Reporting Act. As of this September first, all Americans can receive one free credit report per year from each of the three agencies.

This VOA Special English Economics Report was written by Mario Ritter.  I'm Barbara Klein.

1 risky   

adj.有风险的，冒险的

参考例句：

• It may be risky but we will chance it anyhow.这可能有危险，但我们无论如何要冒一冒险。
• He is well aware how risky this investment is.他心里对这项投资的风险十分清楚。

2 unpaid   

adj.未付款的，无报酬的

参考例句：

• Doctors work excessive unpaid overtime.医生过度加班却无报酬。
• He's doing a month's unpaid work experience with an engineering firm.他正在一家工程公司无偿工作一个月以获得工作经验。

3 Amended   

adj. 修正的 动词amend的过去式和过去分词

参考例句：

• He asked to see the amended version. 他要求看修订本。
• He amended his speech by making some additions and deletions. 他对讲稿作了些增删修改。