Credit Score Review

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What is a credit score?

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A credit score is a numerical representation of a person's creditworthiness, indicating the likelihood of repaying borrowed money.

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What is the recommended debt-to-credit ratio for a good credit score?

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30%.

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What does a grace period in credit card terms refer to?

Back

The time you have to pay your bill before interest starts accruing.

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Which service providers may use credit scores to determine service eligibility or pricing?

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Utility companies, car loan lenders, and credit card issuers.

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What does a credit score mainly indicate?

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The risk of not repaying a loan.

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What does APR stand for?

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Annual Percentage Rate.

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CCSS.7.RP.A.3

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What is the cost of credit expressed as a yearly percentage?

Back

APR.

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CCSS.7.RP.A.3

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What factors can affect your credit score?

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Payment history, credit utilization, length of credit history, types of credit used, and new credit inquiries.

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What is the impact of late payments on your credit score?

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Late payments can significantly lower your credit score.

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How often can you check your credit report for free?

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You can check your credit report for free once a year from each of the three major credit bureaus.