Good Morning, This mornings topic is credit.. Hmmm some of you are cringing already. Well how many of you even now what credit really is or what credit does, as well as how it affects your life. Well credit is based on a score generated by a mathematical algorithm a formula based on information in your credit report, compared to information on tens of millions of other people. The resulting number is a highly accurate prediction of how likely you are to pay your bills. There are many credit scoring agencies, but the most common one you have probably heard of is FICO, which is Fair Isaac Corporation, they are widely used by all three of the major credit bureaus; Experian, Equifax, and TransUnion. The best credit score is 850 or better and the lowest is 400, but do not quote me on the actual numeric value. Their are 4 tiers poor, fair, good, excellent. The scale varies with these tiers depending on what credit you are applying for. Their are many different credit scoring models used in the the industry, insurance, retail, auto, mortgage, etc., Information on credit is different across the three industries, some information is reported by some and not by others. So that is the basic overview of what credit is. I will explain in my next two post I will explain what it does and how it affects you the individual...
Posted on: Wed, 12 Feb 2014 12:36:41 +0000
Trending Topics
Recently Viewed Topics
© 2015