Importance of Credit Score Created by Ms. Snyder
What’s Credit Rating? <ul><li>When you use credit, you are borrowing money that you promise to pay back within a specified...
What’s a FICO score? <ul><li>A type of credit score that makes up a substantial portion of the credit report that lenders ...
Who keeps track of your credit rating? <ul><li>Credit Bureau </li></ul><ul><li>An agency that researches and collects indi...
What makes up your credit score? <ul><li>From the information in the credit report, the bureau determines a credit score b...
Why your credit rating is important <ul><li>When you apply for a new credit card, a new job, car insurance, even a phone h...
Credit Score-Mortgage Rate-Monthly Payment
Work Cited <ul><li>&quot;The Importance Of Your Credit Rating.&quot;  Investopedia.com - Your Source For Investing Educati...
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Credit score

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Credit score

  1. 1. Importance of Credit Score Created by Ms. Snyder
  2. 2. What’s Credit Rating? <ul><li>When you use credit, you are borrowing money that you promise to pay back within a specified period of time. </li></ul><ul><li>A credit score is a statistical method to determine the likelihood of an individual paying back the money he or she has borrowed. </li></ul>
  3. 3. What’s a FICO score? <ul><li>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 </li></ul>
  4. 4. Who keeps track of your credit rating? <ul><li>Credit Bureau </li></ul><ul><li>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.  </li></ul><ul><li>Three major credit bureaus in the U.S. (Equifax, TransUnion, and Experian) may issue differing scores for an individual, </li></ul>
  5. 5. What makes up your credit score? <ul><li>From the information in the credit report, the bureau determines a credit score based on five major factors: </li></ul><ul><li>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. </li></ul>
  6. 6. Why your credit rating is important <ul><li>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. </li></ul><ul><li>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. </li></ul>
  7. 7. Credit Score-Mortgage Rate-Monthly Payment
  8. 8. Work Cited <ul><li>&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>. </li></ul>

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