What is Credit?
- Let’s Make It Right Consulting, LLC
- May 30, 2024
- 1 min read
Updated: Jun 4, 2024
Credit is a contract agreement in which a borrower receives a sum of
money or something of value and repays the lender at a later date,
generally with interest.
The purpose of credit is it allow you to make large purchases (such as a
home or dental practice) that you otherwise would not be able to
afford if you were paying in cash. The following ratings explain the
impact of the different score ranges:
What is a Credit Score?
A credit score is a predication of your credit behavior, such as how
likely you are to pay a loan back on time, based on information from
your credit report.
A FICO credit score can range anywhere from 300 to 850, with the
average American scoring between 670 and 700. The FICO score model
is determined by five (5) main elements:
What is the Credit Bureau?
The credit bureau is a data collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States. The main three credit-bureaus are:
Transunion
P.O. Box 2000
Chester, PA 19016
1-800-916-8800
Equifax
P.O. Box 74025
Atlanta, GA 30374
1-888-378-4329
Experian
4500 Allen,
TX 75013
1-888-397-3742
What is a Credit Monitoring Service?
A credit monitoring service is a commercial service that charges you a
fee to watch your credit reports and alert you to changes to the
accounts listed on your credit report.
List of Credit Monitoring Service Providers:
FREE CREDIT REPORT!!!!
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