Credit 101
Establishing or maintaining a good credit history has never been as important as it is today. It's not just that you'll need good credit to get decent rates when you're ready to buy a home, your credit history /
credit score
can determine;
- The interest rate and terms of a car loan
- The interest rate of a credit card
- Your ability to get a good job
- a deal on your cell phone
- reasonable rates on insurance
- terms and / or access to certain rental properties
When applying for credit, or services where you are obligated to make a monthly payment, your
credit report
may be pulled. One seemingly minor misstep such as a late payment, or maxing out your credit cards, can have a negative impact on your score for years. If you're just starting out, you have a once-in-a-lifetime opportunity to build a credit history the right way. Using Renter’s Credit is one important step in managing your good credit history
What is a Credit Report?
What is a Credit Score (FICO/BEACON)?
About Credit Scores
Understanding the Basics of Credit Scoring
What is Alternative Credit?
What is Bad Credit?
What is a Credit Score (FICO / BEACON)?
Credit bureau scores are often called “FICO scores” because most credit bureau scores used in the U.S. are produced from software developed by Fair Isaac and Company. FICO scores are provided to lenders by the major credit reporting agencies.
FICO scores provide the best guide to future risk based solely on credit report data. The higher the credit score, the lower the risk. But no score says whether a specific individual will be a “good” or “bad” customer. And while many lenders use FICO scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable for a given credit product. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders use to determine your actual interest rates.
What is a credit report
Credit reports are used to create your credit scores, the three-digit numbers that lenders typically use to gauge your creditworthiness. Lenders also may look at the reports themselves, as may the landlords, employers, insurers and utility companies who use credit to evaluate applicants.