Credit Score

Hi my name is Levi Herzog and I will be doing my informative speech on credit. Credit is so important because it affects much more than your finances but also your career and your personal life. Even Landlords often check up to see if they want you as a tenant. Today I will tell you what lenders look for when considering you for credit and how you as a consumer are evaluated. Then I will explain to you how your score is calculated. And finally I will give you some tips on how to use your credit wisely. What lenders look for when they review your credit report. If you ever apply for any type of credit you know the process of filling out the application and hearing the words approved or denied. What you may not know is what lenders are looking for when evaluating your credit report. An applicant’s credit worthiness is based on 3 things. They are capacity character and credit. To evaluate your character, a lender will look at things like how long you lived at your current address, and your terms of employment, how long have you been employed, have you switched jobs several times in the last few years. Any negative factors on your public records such as liens, judgments, or bankruptcies can also raise a flag for the lender. The next thing which is capacity is evaluated by how much credit you currently carry. A lot of people carry high balances and only pay the minimum payments or the interest on it, which is obviously no good. When a lender sees this, he or she will evaluate your income and compare it to how much money you owe on your current accounts and look at the amount of credit you are currently looking to apply for and evaluate it from there. The 3rd measure would be credit, how current are you on your accounts, are you behind, the length of time, your accounts are open, of course the longer the better. Now we are going to move on to how your credit is evaluated. Your credit score is determined by various scoring