Did you know that March is National Credit Education Month? To mark the occasion, Vince thought he'd share some info from the National Financial Educators Council Credit Education Guide. If you'd like a copy of the full guide, just drop him a note at vince@thecfoathome.com
Credit Bureaus are
Companies that collect information about your credit and other financial obligations
Credit History
Companies that you have loans with report how you have managed your debt to the credit bureaus. All this information is compiled into your credit history.
Credit Score
Credit scoring companies (FICO and AdvantageScore) use credit history info to calculate and assign you a credit score, which is used as a measure your creditworthiness
The FICO scoring system is currently the most widely used and currently evaluates the following credit history elements with the following weights:
35% is based on your payment history.
30% reflects the amounts you currently owe.
15% is from the length of your credit history.
10% is from new credit and the number of recently-opened accounts.
10% is based on the types of credit you use.
FICO credit score ranges
Exceptional 800 - 850
Very Good 740 - 799
Good 670 - 739
Fair 580-669
Poor 300 - 579
Credit Report
A summary of your credit history and credit scores is published by the credit bureaus as a credit report
Resources
Contact the Host - vince@thecfoathome.com
