Understanding Credit Score

What is the main purpose of a credit score?

• To show how much money you have saved

• To measure your income and expenses

• To help lenders decide whether to lend you money

Credit score is a range of numbers that helps lenders decide whether to approve someone for a loan.

What is the lowest possible credit score a person can have?

• 0

• 100

• 300

Credit score is a range of numbers that helps lenders decide whether to approve someone for a loan.

What is the highest possible credit score a person can have?

• 300

• 850

• 900

Each credit score number has a matching rating.

What credit rating does a score of 640 represent?

• good

• fair

• poor

• very good

• excellent

Each credit score number has a matching rating.

What credit rating does a score of 780 represent?

• Good

• Very Good

• Fair

• Poor

• Excellent

Many factors go into the calculation of a credit score.

What is one factor that affects your credit score?

• How often you use cash

• How long you have had credit accounts

• How much money you earn

Having a low credit score has several drawbacks.

What is one potential drawback of having a poor or fair credit score?

• You may have to pay higher interest rates

• You may have to file for bankruptcy

• You may lose your job

The main purpose of credit score is for lenders to decide whether or not to approve someone for a loan, mortgage, or credit card.

What is one other purpose of your credit score besides applying for loans or credit cards?

• renting an apartment

• booking a flight

• voting in an election

Many factors go into the calculation of a credit score.

What is one factor that affects your credit score?

• Your marital status

• Your income level

• Your payment history

Having a high credit score and excellent rating has many financial benefits.

What is the main benefit of having a very good or excellent credit score?

• You can get free credit reports

• You can get the best interest rates available

• You can get cash back rewards and bonuses