Credit Scores
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Credit Scores Balancing Credit and Debt to Maintain Credit Worthiness
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Credit Scores. Balancing Credit and Debt to Maintain Credit Worthiness. Credit Score. Rating agencies Experian Equifax Transunion May contact these agencies when there is a discrepancy between reported score and actual financial activity. - PowerPoint PPT Presentation
Transcript of Credit Scores
![Page 1: Credit Scores](https://reader036.fdocuments.in/reader036/viewer/2022072015/56813059550346895d961837/html5/thumbnails/1.jpg)
Credit ScoresBalancing Credit and Debt to Maintain
Credit Worthiness
![Page 2: Credit Scores](https://reader036.fdocuments.in/reader036/viewer/2022072015/56813059550346895d961837/html5/thumbnails/2.jpg)
A numerical expression of a person’s credit-worthiness
Based on a formulaic calculation by different rating agencies
Rating agencies◦ Experian◦ Equifax◦ Transunion
May contact these agencies when there is a discrepancy between reported score and actual financial activity
Credit Score
![Page 3: Credit Scores](https://reader036.fdocuments.in/reader036/viewer/2022072015/56813059550346895d961837/html5/thumbnails/3.jpg)
Credit Score Scale
-Provides lenders with a rating system for
determining rates for a potential customer
Average score is “Fair” for American – primarily a result of the typical
negative savings rate for most Americans.
![Page 4: Credit Scores](https://reader036.fdocuments.in/reader036/viewer/2022072015/56813059550346895d961837/html5/thumbnails/4.jpg)
Influences on Individual Credit Score
![Page 5: Credit Scores](https://reader036.fdocuments.in/reader036/viewer/2022072015/56813059550346895d961837/html5/thumbnails/5.jpg)
Breakdown of RatesMany people have what is
considered to be “good” credit