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