Credit by Marissa & Eskedar
Credit reports, credit records, and credit worthiness
Credit Record
- What it is: History of a borrower's responsible payment of debts
- Why it's important: You can be denied or granted credit based on your credit record
- Relation to class: We learned that a credit score determines if you get credit and also factors in when getting a job or buying a house
Credit Report
- What it is: Contains your credit history and information that determines your credit score
- Why it's important: Companies can see your credit report and decide if you can buy a house or get a job based on your credit score
- Relation to class: We learned about how important credit reports are. If you have a bad credit report, it can hurt you in the long run by not being able to get a job
Creditworthiness
- What it is: An assessment of the likelihood that a borrower will default on his or her debt obligations
- Why it's important: You need to be a reliable borrower. If you cannot pay back your money on time, it can hurt you in other ways, like not being able to purchase a car
- Relation to class: We learned in class that we should pay our debt back as soon as possible. If you miss a payment, it can reject you from buying something
Ten different factors on a credit report
- Name
- Address
- Employer
- Revolving accounts
- Installment loans
- Open and closed accounts
- Account payment history
- Recent credit and loan applications
- Collection accounts
- Public records