AHRM 2304 Lecture Notes - Lecture 7: Annualcreditreport.Com, Credit Score, Experian

• School: Virginia Tech
• Department: Apparel, Housing, and Resource Management
• Course: AHRM 2304
• Professor: Solis

Document Summary

Credit score: financial calculation of how well you"ve been managing your credit. Each credit reporting agency has a different algorithm to calculate your credit score. Make sure you check all 3 agencies" scores: equifax, transunion, experian. ~40 million consumers have errors on their credit reports; many don"t even realize it until years later! Credit scoring factors: payment history 35, money owed 30, credit history 15, new credit 10, types of credit 10% Credit score = the single most important factor for determining credit approval. Ranges from 300-850: a higher score is more desirable. Ignoring your score could cost you money: now or in the future. Your credit past is your credit future. Often can"t establish new credit because you don"t have any credit to show . Open checking and savings accounts: show creditors that you know how to handle money. Having a cell phone and utilities billed in your name. Get one card and make small purchases.