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Quick Credit Lesson #5:
A credit score is a number lenders use to help them decide, ”If I give this person a loan or credit card, how likely is it that I will get paid back on time?” A score is a snapshot of your credit risk picture at a particular point in time. While many lenders use FICO scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable for a given credit report product. The scores range from 350-800. However there is no single “cutoff score” used by all lenders to predict the creditworthiness of a client.
Equal Credit Opportunity Act (ECOA) (Implemented by Federal Reserve Regulation B) - A federal law that protects consumers’ rights against discrimination.
Equifax - One of the three major credit reporting agencies.
Experian - One of the three major credit reporting agencies.
