The Importance of Your Credit Score
What are the THREE credit bureaus
Equifax, Experian, TransUnion
Credit Score
is a number or points that measures your risk of paying lenders back
Credit Risk
is how likely a person will pay back a lender
Borrower
is the person that promises to pay someone later
Credit Rating
is your credit score (points) that is converted into a rating, which can range from poor to excellent
A good credit score allows a person to do what more easily
1.Borrow Money 2.Borrow Money more cheaply 3.Borrow a larger amount of money
Creating many new accounts and applying for additional credit cards will increase and improve your credit score
FALSE
What is a credit score commonly known as?
FICO
Once a year, everyone is allowed to view their own credit report from each of the credit bureaus, free of charge
TRUE
Credit Bureau
an organization that maintains records on people's credit history and issues credit reports
Credit
borrowing money and promising to pay the debt later
Credit Report
is a detailed report on a person's credit history and habits
Lenders
they issue credit or lend money to others