Credit score? Credit report? What the heck are those and how are they different? Well, they’re only some of the most important financial paperwork that exists on you and your financial history. In other words, you’ve got to figure out the answers to these questions. Don’t worry—we’ll break it down for you.
|Whether or not you regularly check your credit report and score, they are constantly being updated to reflect your financial track record. You need to know what both look like for you.|
A credit report is a file on you, full of a lot of important info. Your credit history that includes:
1. Your personal information (social security number, past
addresses, current address, employment history)
2. A summary of your financial accounts (and how responsible
you’ve been with them)
3. Whether or not you’ve filed for bankruptcy
4. Any inquiries that have been made on your credit report
(from lenders, for example)
A credit score is the numerical reflection of your credit report. Your credit report is put through a mathematical formula in order to get your credit score —which will range between the 300s up to 850. When we talk about credit scores, we're usually referring to your FICO score (FICO is the name of a credit score corporation). We want you to be at least in the 700s range, so let's work to get there! Above 760 is considered excellent.
Why should you care? The higher your score, the better off you'll be. We're talking lower interest rates on your credit cards, better loans, and more. If you get in-the-know about your credit report and credit score, it'll pay off.
|Take our quiz.|
True or False? Opening a credit card is a good way to build up your credit history.
True or False? A credit report and a credit score are the same thing.
Your employer may ask to check your credit report as a proxy for a "character" reference.
What are the names of the three major credit bureaus where you can check your credit report?
How many times a year should you check your credit report from each bureau?
•One time per year
•At least once a month
How many credit cards can you close a year without negatively effecting your credit score?
True or False? Being late on ONE credit card bill will not effect your credit score.
True or False? Checking your credit score frequently will impact your score.
An APR (Annual Percentage Rate):
•Can range from as little as 4% to as much as 25%
•One of the most important features to consider when
selecting a credit card.
•Can be a low percentage for those with high credit
scores versus high percentage for those people with
low credit scores.
•All of the above
Which of the following is not a way to prevent identity theft?
•Verify your credit card statements
•Review your credit report for suspect accounts
•Pay attention when using credit cards in public places,
such as cash registers
•Respond to "spam" unsolicited E-mail that promises
you some benefit but requests identifying data
Action Time: 2 minutes
Click here (http://www.learnvest.com/pages/newsletter/Day-13-Get-An-A-On-The-Credit-Quiz) for answers!
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