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Finance allah shmoop What are credit scores and credit worthiness

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Remember that scene from wayne's world Alice cooper lets him

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backstage They bow and chant Where'd i worthy We're not

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worthy Well basically just swap one of the greatest rock

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and roll singers with your local banker Yeah well as

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much as you'd rather hang out with alice cooper this

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nerdy guy here is wet A more important to your

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credit That long hair thing worked when he was in

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his twenties And not so much now I guess Anyway

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if you have a bank account or a credit card

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or are generally tapped into the banking and credit system

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of the world in any way shape or form you

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have a credit score You might not know it But

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you do Where does that score come from And yeah

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It's known as yours Fico score While fico stands for

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fair isaac corporation that's a publicly traded company and that's

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what they do they provide credit scores and they try

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to be fair like isaac Anyway those scores were requested

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and released through one of the big three credit bureaus

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Equifax experian in trans union Oh my These guys give

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you a number That kind of thing finds your reliability

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in making payments to banks or other lending institutions who

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might loan you dough Well why would you care home

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Because that number you get directly affect the price you

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pay to rent money The worst Your credit score the

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higher your rent have will likely be in who likes

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to pay high rent especially when it comes to renting

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money Well the worst fico score is a zero and

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were wondering what you'd need to have done Teo get

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that like three bankruptcies in a bank robbery Maybe Well

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we want to meet the third guy who loaned you

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money at that point Anyway the bill gates perfect score

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is an eight Fifty on such a show off And

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here are roughly the breakdowns for how banks think of

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credit Score c it's all color coded here with the

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red yellow and green Well the goal here in having

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a score is to determine your reliability in paying back

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a given loan Yes the amount you're borrowing also matters

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But to speed up the initial evaluation of you is

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a borrower Wealthy credit score is applied to you and

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it lets banks quickly come to a yes or no

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or ah maybe decision Yeah quickly that credit score thing

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helps and if the answers and no well then you

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can always backpack across the country and stay in youth

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hostels So yeah you don't want to be murdered by

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a deranged dutch businessman and we suggest you stay current

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on your us visa payments and have a high credit 00:02:30.173 --> [endTime] score Be creditworthy because you are worthy Hope yellow

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