and the car/home buying process Your Credit Score and the car/home buying process

What do you know? Do some quick research to tell me some basic information about Credit Scores. Tell me things such as  What is a credit score? What is it used for?  How do you find your credit score?  Any other interesting information. 

Terms to Know Credit – an agreement in which the borrower (you) receives something of value now (EXAMPLE: car, house, etc.) and agrees to pay the lender at a later date Interest - A fee paid for the use of another party's money. To the borrower it is the cost of renting money, to the lender it is the income from lending it.

What is your Credit Score? Your credit score is a number that banks use to determine whether you qualify for credit—and if so, how much interest they’ll charge you. Credit scores range between 300-850 The higher your credit score, the better.

What is your Credit Score? When you borrow money, there is always the chance that you will not be able to repay it Companies such as banks rely on your credit score to decide if you’re a good credit risk A potential loaner or landlord may turn you down if your score doesn’t measure up

How is Your Credit Score Calculated? Payment History – 35% The bureaus factor in when you last paid an account late, how often you pay late, and by how many days.

How is Your Credit Score Calculated? Total Debt – 30% In general, higher amounts of debt loads typically work against you.

How is Your Credit Score Calculated? Duration – 15% The longer you have had an account (credit card, credit, etc.) the better. 

How is Your Credit Score Calculated? New Credit – 10% Multiple requests for credit mean you’re a greater risk. FICO looks at the number of new accounts that you have opened, as well as the number of requests, or inquiries for your credit score or report.

How is Your Credit Score Calculated? Types of Credit – 10% FICO looks at the number and “quality” of each type of account. For instance, a credit card from a national bank such as PNC Bank carries more weight than one from a department store such as Sears.

Credit Score Make Up Payment History – 35% Total Debt – 30% Duration – 15% New Credit – 10% Types of Credit – 10%

Exit Slip Use the internet to determine what is a good credit score. Tell me about the different credit score ratings. What are 5 ways to improve your credit score? Please list AND explain.