As part of this special series on credit, let’s take a step back and examine the credit report in a little more detail. To do so, I am going to have a pretend conversation with a Curious Mythical Reader (CMR). There’s even an imaginary guest appearance from the Fair Trade Commission (FTC)! Check it out:

CMR: So, like, what is a credit report anyway?

KD: Instead of trying to reinvent the wheel, I’m going straight to the government’s source for consumer protection — the FTC — and their website’s definition of credit report:

FTC: “Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by consumer reporting agencies (CRAs). One type of CRA is commonly known as a credit bureau.”

KD: There are three main credit bureaus in the United States: 1. Equifax , 2. Experian and 3. TransUnion.

FTC: “You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance or a job.”

KD: In other words, there are lots of areas in your life that have the potential to end up on your credit report.

FTC: “Your credit record contains information about your income, debts and credit payment history. It also indicates whether you have been sued, arrested or have filed for bankruptcy.”

KD: The good, the bad and the ugly, folks. It’s all in there.

CMR: Okaaaaaaaay…but why do I need to know about it?

KD: There are lots of reasons to be aware of what is in your credit report. The information listed in each credit record says a lot about you, and it provides an indication of your ability to make payments on time. It is often used as a personal reference by employers and landlords, since how you have managed your money in the past may be an indication of future behavior. Utility companies may look at your credit report before they agree to turn on your electricity, cable television, phone, etc. Lenders, such as banks, car companies and more, will use the information in your credit report to determine whether they will lend you money and at what interest rate.

CMR: Hmmmm, I have also heard something about identity theft…?

KD: Yup. As if all reasons people use your report weren’t enough, it is also very important to keep tabs on your credit report to make sure that you have not been the victim of identity theft. You should carefully check the information listed in the report to make sure that only the accounts you have opened are listed in the report. If someone else opened a credit account under your name, you need to know about it as soon as possible and immediately take steps to correct it!

CMR: Whew! That was a lot of information…

KD: And I’m just getting started. Next time we’ll cover how often you should check your credit report and what to do if you find any errors.

In the meantime, anyone out there with questions?

Q: I’m applying to colleges and I need to write an admission essay, but I can’t think of a creative topic. I wanted to write about my mission trip to Peru this summer, but my teacher said that colleges get too many essays about that topic. I want to write an essay with a topic that will stand out against the rest. I want the people who read it to read the first paragraph and immediately put it in the “keeper” pile. My grades and test scores aren’t very good, so this essay is all I have to get into college. If you have any idea or have heard of other topics that are good then please let me know.

A: Your teacher is right! Colleges get tons of essays like this a year. But, don’t listen to your teacher! Share what makes your experience unique and tell how your experience has led you to want to attend a particular university or study in a particular field. If you change your mind and want to write about something else, then choose a topic that you’re passionate about. For example:

1. Write about a professional (famous or not) in your prospective field whose research, work, or advice has inspired you to choose your major or to pursue some other related interest.
2. Tell them about a personal tragedy that inspired you to choose your major or to pursue some other related interest.
3. Talk about a time when you volunteered at home or abroad. Describe your experience and how it changed your life.
4. Are you an international student or do you speak another language? Then maybe you can talk about your experience learning a new language or why it is important that you spend time abroad.

Though you’ve been taught to believe otherwise, your teachers don’t always tell you what’s best and they’re not always the best people to go to for advice that will have an effect on the rest of your life. If you’re still not convinced, ask the guidance counselor at your school instead of relying on your teacher’s advice.

Some books you might be interested in checking out:

Why English? In general, English majors aren’t known for their high salaries or job security. But a friend of mine, a prospective law student, had convinced me that what I majored in during undergrad didn’t matter as long as I planned on getting a graduate degree. Of course this doesn’t apply to all situations, but it certainly applied to mine. I knew that a degree in English would allow me to be flexible enough to enter a number of graduate programs related to my interests, which didn’t include math or science. I chose English because it bought me some time to think about what I really wanted to do. I also knew that I would eventually need a graduate degree to remain competitive during tough economic times and that I would eventually want to teach to make extra money if I needed to.

Notices inviting applications have been issued recently under ED programs that include the following: Grants for the Integration of Schools and Mental Health Systems, Training and Information for Parents of Children with Disabilities, State Charter School Facilities Incentive Grants Program, Carol M. White Physical Education Program, and Higher Education Disaster Relief.