Dave Ramsey explains why you need credit
Edith Bunker explains what credit is
90 Day Fiancé David and Annie
Rerun gets Credit Cards
Youtube video coming soon
What is a Credit Score?
A credit score is a number generated by a mathematical formula that is meant to predict credit worthiness. Credit scores range from 300-850. The higher your score is, the more likely you are to get a loan. The lower your score is, the less likely you are to get a loan. If you have a low credit score and you do manage to get approved for credit then your interest rate will be much higher than someone who had a good credit score and borrowed money. Therefore, having a high credit score can save many thousands of dollars over the life of your mortgage, auto loan, or credit card.
🟢 Payment History – 35%
(on-time payments vs. delinquencies, more weight on the last 24 months)
🔵 Capacity and Amount Owed – 30%
(percentage of credit limits available)
🔴 Length of Credit – 15%
(how long you’ve had your accounts)
🟠 New Credit – 10%
(number of inquiries and new accounts opened in the last 12–18 months)
🟡 Types of Credit Used – 10%
(installment loans vs. revolving)
Information That Cannot be in a Credit Report
- Medical information (unless you provide consent)
- Notice of bankruptcy (Chapter 11) more than ten years old
- Debts (including delinquent child support payments) more than seven years old
- Age, marital status, or race (if requested from a current or prospective employer)