The guide emphasized the importance of good credit and how it can affect your future purchases. If you have bad credit, you may be denied a loan or be required to pay a higher interest rate than someone with good credit. Having good credit gives the lenders the confidence you will pay them back in full and on time. But what happens if you have bad credit?…
Fair Isaac Corporation (FICO score) is a certain brand of a credit score. Credit reporting agencies are where the information is collected from to calculate your credit score; used to determine if they should or should not offer you a loan or credit cards. The three credit agencies that make up the FICO score are Experian, Equifax, and TransUnion. Each agency has different credit reporting data because of different agency data is being used to calculate it. In the future if you want to buy a house and your credit score is in the low range (500-600) they will charge you hundreds of dollars more per month than a person who has a high range (700-800). The higher your score is the less the lender might charge you (How Your Credit Score Impacts…
2. What is a credit score? (0.5 points) A credit score is a number based on a level analysis of a person's credit files, to represent the creditworthiness of that person.…
The research in this report was taken from a few different sources. The primary research was conducted by distributing a survey to the general public. The survey was designed to help us understand how much people actually know about their score. However, due to limited time and resources the survey was completed by only 20 people. The information provided by the survey was still useful despite the limitation on sample size. The secondary research was taken from websites, books, and training materials from the lending industry.…
If you have a credit card, pay off the balance each month. By doing so, you avoid the risk of late dues or unnecessary fees. In general, you should try and only use your credit card for emergencies. You might want to go ahead and spend money on your credit card, but you should focus on school and not spend money on entertainment. You could find yourself quite distracted by financial difficulties.…
Check your report to ensure clarity – You can easily improve your financial position and credit scores by searching thoroughly at your credit payment history for accuracy. The first point is requesting for a copy of your credit history. This should be done every often to avoid cases of wrong-identity, which are common in people with the same name. Any inaccuracies should be reported instantly to avoid distortions that could hurt your credit scores.…
When are the five C’s important? The five C’s are important if you are about to apply for a loan. Whether you go to a small or large business for a loan, your creditworthiness will be reviewed by the lender. The five C’s are important because lenders will use these five important factors to determine if you should be approved for the loan.…
It helps you determine the capacity C. Capacity meaning the ability or intent to repay your debts, based upon your household cash flow; lenders typically follow different methods to consider any expenses relative to the person’s income. Lenders may evaluate your capacity by looking at your sources of income and your expenses.…
Negative credit has a significant impact on your ability to get a car or home loan. If you're approved for a loan with a low credit score, chances are you'll be paying a higher than normal interest rate. Poor credit causes you to pay more money to borrow, when compared to people having a higher credit score. The highest possible credit score is 850. The average credit score is 680 in the United States. Any score above 700 is considered a good score. Credit scores take time to increase, but it seems they can decrease almost overnight. Despite the intimidating aspects of credit, you don't have to be a financial genius to have a high credit score. Avoiding credit mistakes can mean the difference between receiving a 600, or a 750 credit score. Know the Scores…
You can increase your credit score by 200 points and more by simply buying good credit. You may wonder how it's possible and even argue that it's unethical, but individuals and businesses have been doing it for over 30 years and it's perfectly legal!…
The essay will begin with the introduction of the credit rating. It will pose some questions similar to: Why do lenders use credit scores? How does the lender obtain credit scores? The essay will also discuss types of credit scores to help the audience recognize the impact of credit ratings. The introduction will let the audience understand what the essay will be about and draw them in.…
III For most people the idea of a credit score is daunting because until recently credit scores have not had such an impact on peoples borrowing.…
Credit reflects financial power. A higher credit score indicates that my current financial circumstances and historical behavior demonstrate how dependable, financially responsible, and trustworthy I am as a person. Therefore, the more lenders that find you financially responsible, the more financial freedom you will build. Credit reflects financial power. My credit score is the key to my financial future.…
Anything else you can tell me about your credit? What led you to apply for the loan…
This module will review the key components of fundamental analysis of a borrower’s creditworthiness. The emphasis will be on the analysis of the income statement,…