Credit score
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Credit score

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    Credit score Credit score Presentation Transcript

    • Importance of Credit Score Created by Ms. Snyder
    • What’s Credit Rating?
      • When you use credit, you are borrowing money that you promise to pay back within a specified period of time.
      • A credit score is a statistical method to determine the likelihood of an individual paying back the money he or she has borrowed.
    • What’s a FICO score?
      • A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and whether to extend a loan. FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score
    • Who keeps track of your credit rating?
      • Credit Bureau
      • An agency that researches and collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans. 
      • Three major credit bureaus in the U.S. (Equifax, TransUnion, and Experian) may issue differing scores for an individual,
    • What makes up your credit score?
      • From the information in the credit report, the bureau determines a credit score based on five major factors:
      • 1) previous credit performance-did you pay your bills on time? 2) current level of indebtedness, 3) time credit has been in use, 4) types of credit available, and 5) pursuit of new credit.
    • Why your credit rating is important
      • When you apply for a new credit card, a new job, car insurance, even a phone hookup, or renting an apartment, your credit rating is checked.
      • Basically, if you have a poor credit score, lenders will not shun you (unless it is utterly awful); instead, they'll lend you money at a higher rate than the one paid by someone with a better credit score.
    • Credit Score-Mortgage Rate-Monthly Payment
    • Work Cited
      • &quot;The Importance Of Your Credit Rating.&quot; Investopedia.com - Your Source For Investing Education. Web. 08 Nov. 2011. <http://www.investopedia.com/articles/00/091800.asp>.