rating your credit and help for credit problems. what is your credit score? a score that tells...
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What is your credit score?
A score that tells everyone if you are a good risk
Credit bureaus sell credit score information to lenders
Higher score means you can borrow money at a lower interest rate
Credit score determined by….
Employment and incomeHousing (rent or own?)Assets
What you own (investments, savings accounts, etc.)
Credit history How many loans do you have? What do you owe on each one? Are you close to your credit limit? How prompt are you with payments?
If you don’t pay off your loans……
Called defaulting on a loan
Property can be repossessed
Home foreclosureWages garnishedBankruptcy
Reduces what you owe but future borrowing will be very difficult