A better credit score can give you access to loans and other forms of credit, generally at lower interest rates. A clean credit report can help lower your insurance premiums, open up broader rental housing opportunities and even help when you apply for a job.
DFPI and credit
The DFPI is your ally in keeping your credit score accurate and your credit report free of errors or negative remarks. We help you understand your rights, and provide guidance on credit-related laws and credit reporting. It’s our responsibility to safeguard your interests and the interests of consumers throughout our California.
Featured Resources
Basic Banking and Credit for New Americans (Part One)
Many banks offer workshops and resources to help you manage your money. The staff is trained to help if you have questions or run into issues. Also, remember that the DFPI is always here to ensure you get a fair deal.
Checking Your Credit – What You Need to Know
Reviewing your credit report can help protect your credit history from mistakes, errors, or signs of identity theft. The DFPI strongly encourages you to pull your report annually, so there are no surprises when you need to open a new account or use your credit for an important purchase, such as a car or home.
New Year, New Financial Goals
Follow these eight tips to help you set your financial goals for the coming year and create a plan for successfully achieving them.
Useful Terms
Credit Score
Your credit score uses information from your credit history to assess your creditworthiness.
FICO Score
The FICO score is the most widely used credit scoring model, and it’s used by many lenders to assess credit risk.
Credit Report
Your credit report is a detailed record of your credit history, including your accounts, payment history, balances, and relevant public records.
Credit Bureaus
Credit bureaus are companies that collect and maintain consumer credit information.
Credit Utilization Ratio
Credit utilization ratio is the amount of credit you have access to compared with the amount of credit you’ve actually used.
New Credit
It’s important to track your new credit because opening too many credit accounts over a short period can impact your credit score.
Debt-to-Income Ratio (DTI)
Debt-to-Income Ratio (DTI) compares monthly debt to income. It plays a big role in how lenders assess your eligibility for a loan.
Grace Period
The stretch of time in which you can pay your balance in full without incurring any interest charges is called the grace period.
Interest Rate
Your interest rate represents the cost of your loan. It is the percentage of the total loan amount that you’re obligated to pay to the lender on the money you’ve borrowed.
Principal
Your principal is the original amount of money borrowed, minus any interest and fees.
Other Useful Links
- Financing & Lending Education: Insights and guidance for managing debt, fixing debt problems and protecting yourself from fraud.
- Brochure: Reduce Your Debt: A handy, downloadable guide to help you manage debt and control your economic future.Understanding Your Credit: The FTC’s invaluable site dedicated to understanding your credit and how to protect it.
- Consumer Credit Law & Practice in the US: Don’t be misled by the legalistic title; this PDF from the FTC lays out consumer credit basics in a way that’s simple, clear and easy to remember.
- How to get out of debt: If you’re worried about how to get out of debt, this FTC resource provides key insights on how to find trustworthy help.
Consumer Insights
7 Tips for First-Time Homebuyers
Buying your first home can be exciting—and stressful. In the homebuying process, many financial questions are sure to arise. Follow these tips to get started.
Consumer Insights
7 Tips for First-Time Homebuyers
Nov 20, 2024
Buying your first home can be exciting—and stressful. In the homebuying process, many financial questions are sure to arise. Follow these tips to get started.
Alerts
DFPI Imposter Asking for Account Information to “Disburse Victim Funds”
Nov 18, 2024
The California Department of Financial Protection and Innovation (DFPI) has received information about scammers fraudulently claiming to be from the “Department of Financial Protection and Innovation”, using the email address [email protected].
Alerts
Información para los clientes de Sigue Corporation
Nov 14, 2024
A partir del 22 de octubre de 2024, los procedimientos para presentar un reclamo por transacciones no pagadas con Sigue Corporation han cambiado.
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