Hey Karla! How are you today?
Hi Jeannette, I am a little frustrated because I do not know what a credit report and credit score is. It is stressing me.
Oh no! Don't stress about it, I know everything about credit reports and credit score. I can help you, if you'd like?
Yes, please! Thank you! You are a life saver!
To understand what a credit report is, you need to know that a credit report is a record of a consumer's credit history. There is 3 major credit reporting bureaus: Equifax, Experian and TransUnion. Then, a credit score is a mathematical tool created to held lenders evaluate the risk associated with lending a costumer money. Did you get all of that Karla?
Yes, thank you!
There's more. A credit report contains all of your personal information. Remember to not share you information.It also helpful to build a credit history so you can purchase items using credit.
Oh okay, that makes sense.
Also,a credit score is primarily based on a credit report information typically sourced from credit bureaus. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.
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