Where Did Credit Scores Come From?

The video explains the concept of credit scores, their role in determining loan eligibility, and interest rates. It traces the history of credit reporting from the 1800s to the creation of the FICO score in 1989. The video also discusses factors affecting credit scores and offers tips for improving them, such as timely loan payments and checking for errors.

What is the primary purpose of a credit score?

• To assess health insurance eligibility

• To evaluate job performance

• To determine academic scholarships

• To predict loan repayment likelihood

How did early credit reporting methods assess borrowers?

• Through social media analysis

• By using respected neighbors' references

• Through online databases

• Via government-issued reports

Which act was passed to ensure fairness and privacy in credit reporting?

• The Consumer Protection Act

• The Fair Credit Reporting Act

• The Data Privacy Act

• The Financial Fairness Act

What is a key factor that affects your credit score?

• Your social media activity

• Your bill-paying history

• Your travel frequency

• Your favorite color

Which of the following is a way to improve your credit score?

• Ignoring credit card bills

• Applying for multiple loans at once

• Paying loans on time

• Closing all credit accounts