Intro to Borrowing
Credit Scores
OK, now that we’re back to credit scores—I’ve heard about them, but what are they?
A credit score is a way that lenders evaluate your credit worthiness. They work with companies called credit bureaus that keep track of your prior experiences with borrowing money, and your overall financial picture—which includes how promptly you pay everything from your monthly bills to even your library fines. The more problems the credit bureaus find, the lower your score.
Who makes decisions about you based upon your credit score?
Lenders
Landlords
Employers
All of the above
What’s a credit bureau?
A lending agency
An organization that keeps track of your borrowing behavior
A consumer protection agency
A government agency that regulates lenders
Which of the following does NOT affect your credit score?
Employment history
Overall financial picture
Borrowing history
Political party