Credit By: Paul gawne

What is Credit? Credit is what allows people to borrow money and pay back the provider at a later time, usually with interest. Credit is important because it allows you to make not only everyday purchases, but also life changing purchases such as houses and cars.

Credit scores: Credit scores are the number given to you based on credit history that lenders use to determine your creditworthiness.

Scores range from 300 to 850, 850 being the best. Your credit score translates into a credit rating.

A credit report shows how you have handled your credit payments in the past and reports on how suitable you are for loans and credit.

Credit reports are produced by Equifax, TransUnion, and Experian

5 Factors that make up credit scores: Payment history, Amounts owed, Length of credit history, New credit, Types of credit in use

How can you build your credit score?

You can build your credit score by getting a secured credit card from your bank. You can also have a parent co-sign on a credit card. Make sure that you make all payments on time and try to pay the full amount.

Credits:

Created with images by Sean MacEntee - "Credit Cards" • cafecredit - "800 Credit Score - Chalk Board" • ccPixs.com - "Credit Card With Money Ver2" • ThomasKohler - "Credit Card" • free pictures of money - "Money" • cafecredit - "Credit Score - Blue" • stevepb - "credit card master card visa card" • Oliver22 - "credit card terminal payment" • geralt - "town sign place name sign final"

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