SAMPLE OUTLINE: Informative (topical) --Full Sentence
Credit Reports: What They Mean to You
I. INTRODUCTION
A. (Attention Statement) What three digits have the biggest impact
on everybody’s financial future? Your credit score.
- (Thesis) You should understand your personal credit history because it can make or break your financial freedom by determining your ability to obtain credit and the corresponding interest rate.
- (Significance to Audience) As college students, your credit report is relatively young, so it is especially important to become informed early on so we can manage our credit well.
- (Credibility Statement) I’ve spent the last four years working as the financial services manager at a new car dealership and I’ve spoken with many people who work as credit analysts or loan underwriters. Additionally, I’ve collected specific data through various websites.
- (Preview of Main Points) I am going to tell you about the purpose of credit reports, what information gets reported, how the scoring system works.
[Transition] But first, let’s see how credit reporting got started.
II. BODY
- (Main Point 1) Purpose of Credit Reporting
1. Before someone decides to lend you money, for any reason,
they think about how likely it is that they will get that money back. When lending money is your business, it is important to have a way to figure that out.
2. Individual businesses used to keep records of their customer’s
payments, but they had no way of gaining information about new customers or how their customer’s managed their credit with other vendors.
3. According to Lee Ann Obringer, a staff writer forHow
StuffWorks, the first 3rd-party credit reporting agencies were established in the 1830’s. The three major credit reporting agencies today--TransUnion, Experian, and Equifax.
[Transition] Now that we know how these companies got started, let’s talk about exactly what information they report about you.
- (Main Point 2) The Information on a Credit Report
1. The information included in a credit report comes from a
variety of sources.Some of these includemerchants, lenders, employers, landlords, and the courts.
2. All reports start with personal identifying information
including your name, current and previous addresses, social security number, date of birth, and current and previous employment information.
3. Next, the public records section that includetax liens,
civil judgments, bankruptcies, and other liabilities.
4. Then, the lengthiest portion, which is often the credit
history. This will show information regarding accounts for credit cards, charge accounts, lines of credit, secured loans, car loans, mortgages, etc. This section also includes collection information, both paid and unpaid, as well as late payment.
5. Then comes the report inquiries section, which shows
who has viewed your report within the last two years.
6. Finally, there is a place for consumer statements where
the individual can make a statement regarding their report. This often includes a statement about being a prior fraud victim or information that is currently being disputed.
7. Contrary to what many people think, credit reports never
include bank account information, race, religion, health records, criminal records, income, or driving records.
[Transition] Now that you know what comprises a report, let’s see how all this information gets turned into a three digit score.
- (Main Point 3) How the Scoring System Works
1.According to a recent survey conducted by HSBC, 7 in 10 consumers don’t know their credit score and nearly 50% don’t know what comprises the score.
2.Fair Isaac Company originally developed the credit bureau scoring system in 1981. By 1991, all three major agencies incorporated credit risk scoring.
3.Credit scores, also known as fico scores range between 300 and 850. The higher the number, the lesser the credit risk. Generally, scores in the 600s are considered average and anything higher than 720 is very good.
4.Your payment history accounts for about 35% of your overall score. How much debt you owe accounts for 30%. The length of your credit history is about 15% of your score and new credit is about 10%.
[Transition] Knowing your score and how it’s determined is very important so that you can keep tabs on the accuracy of that information.
III. CONCLUSION
- (Review of main points) I hope that I’ve been able to inform or at least clarify the purpose of credit reports, the information included, and what comprises a credit score.
- (Re-stateThesis or Significance) You should understand your personal credit history because it can have a major impact on your borrowing .
- (Residual Message) So if you’re interested in getting the best jobs, the nicest homes, and saving thousands of dollars, treat your credit like a best friend, because you’ll be together forever.
Works Cited
Obringer, Lee Ann. “How credit reports work.” HowStuffWorks. 10 May 2007 <
“WHATS YOUR SCORE?” 10 Oct. 2004. HSBC. Accessed 10 May 2007 <