Final

Final

Crystol Woodfin
Crystol Woodfin
156
September 25,2011
Robin Schofield

Abstract

Crystol Woodfin

I believe that credit scores are a fair measure to help lenders estimate potential risk. Most

people now are wondering why is it that I believe that credit score is a fair measure for lenders. But what they do not understand is that, credit scoring has been around since the 1950s, with credit bureau scoring becoming widely available in the 1980s. So today, credit bureau scoring is used extensively across many industries. So what is a credit score? A credit score is “based on the data available in the borrower’s credit report, which measures the relative degree of risk a potential borrower represents to the lender. It is not a measure of a borrower’s income, assets, or bank account, although those and other factors are still considered by lenders. The three major points I will be addressing on this persuasive essay are first, understand your credit score, second will be working on you credit score, and last will be to know your rights.
      To understanding your credit score, you have to know what goes into your credit score, why
did the credit file receive the score it did, and what effect, if any, do inquires have on credit bureau scores? Many people in different industries do not understand what goes on their credit score. Highest percent goes on your credit score is your payment history. Payment history is 35%, next to this is 30% the amount you owed to any company or collection, and the next is your late payment, missed payment and public record which is 15%. 10% is for your new credit and the other 10% is for the types of credit in used. Now you’re properly wondering why your credit receive the score it did. For every credit score there are some factor codes that come along with those score. The top four are, delinquency on accounts, amount owed on accounts is too high, too many accounts opened in last 12 months, and too few accounts currently...