What is a Credit Score?

The video discusses the importance of grades in school and introduces the concept of credit scores for adults. It explains that a credit score is a numerical representation of an individual's creditworthiness, ranging from 300 to 850. Factors affecting credit scores include payment history, total debt, and the length of credit history. A poor credit score can make it difficult to obtain loans, mortgages, or credit cards. The video also provides tips for improving credit scores, such as paying bills on time, reducing balances, limiting credit applications, and monitoring credit reports.

What is a credit score compared to in the video?

• A bank statement

• A shopping receipt

• A video game level

• A school report card

Which of the following is NOT a factor that affects your credit score?

• Duration of debt

• Number of friends

• Total debt

• Missed payments

What might happen if you have a low credit score?

• Easier access to loans

• Difficulty in getting a mortgage

• Higher interest rates on savings

• More credit card offers

Which action is recommended to improve your credit score?

• Paying bills on time

• Increasing your total debt

• Applying for multiple credit cards

• Ignoring your credit report

How can you monitor your credit score?

• By guessing based on your expenses

• By visiting a bank every month

• By asking your friends

• By checking it online for free