Credit scores and reports

Credit scores and reports are essential aspects of personal finance. A credit score is a number that represents your creditworthiness, which is calculated by credit bureaus based on your credit history. A credit report, on the other hand, is a detailed summary of your credit history, including your payment history, credit utilization, credit inquiries, and public records. Credit scores and reports are used by lenders, landlords, and other entities to evaluate your creditworthiness.

Your credit score can range from 300 to 850, with a higher score indicating better creditworthiness. The most commonly used credit score is the FICO score, which is calculated by Fair Isaac Corporation. The FICO score is calculated based on several factors, including payment history, credit utilization, length of credit history, types of credit used, and new credit.

It's important to maintain a good credit score and report to qualify for loans, credit cards, and better interest rates. A good credit score can also help you get approved for rental applications and utility services without having to put down deposits.

In this course, we will explore in detail how credit scores and reports work, and how you can maintain a good credit score to achieve your financial goals.

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