Credit Score

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University of Phoenix Material

Credit Score

Resources:
• Five C’s web page located at the following link: http://www.loanuniverse.com/credit.html. • Credit Karma website (www.creditkarma.com)
• Fair Isaac website (www.myfico.com)

Directions

Go to the Fair Isaac Co. website, www.myfico.com. Do not buy a credit score unless you choose to do so. For this activity, go to “Learn about scores”. Review this page, and follow the link to “What’s in your score”. From this page, follow the links to learn more about credit scores.

Note: You do not have to share your personal credit score or other details in this worksheet.

Using what you have learned about credits scores and the Five C’s, respond to the following in 50-to 100-words each:

1. Your household cash flow helps to determine which C? Describe this C. Capacity. The borrower's ability to repay a debt on a timely basis, determined by deducting total cash outflows from the borrowers total income during a month.

2. When are the five C’s important?

The 5 c’s are important if your looking in to financing a vehicle, buying a home, taking out a loan. Even now days renting home, a hotel room, even purchasing goods.

3. Why is a credit score important?

Your credit score and underlying history is one of your most vital parts of your financial life. Your credit score follows you forever and it will play a huge role in many major financial situations throughout your life. Many people think that a credit score only really matters when it comes to being approved for a loan or credit card, but it goes far beyond that.

4. What are the top 2 factors in your FICO score? What actions can you take to earn the most points in these categories? The top two factors of my fico score is my payment history and how much I owe. I can set up payment plans for the legitimate creditors I owe and evebtually get them paid off so they can fall off my credit and...
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