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Personal Finance: Narrowing And Repairment Performance

Satisfactory Essays
Personal Finance IAKT Q2

In personal finance, we are currently talking about Establishing Credit. A credit report is the complete record of your borrowing and repayment performance. Write 2-3 paragraphs, using complete sentences, detailing why a credit report is so important in your life. Please make sure you discuss the four types of information found on a credit report, what credit reports are used for, what the three major U.S. credit bureaus are, and what causes bad credit (your credit score to fall), what causes good credit (or your credit score to rise), and why you should request a free copy of your credit report each year. Be aware of grammar, punctuation, and spelling. Remember to be detailed and complete in your answers.

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Credit reports are used to make your credit score and can also be used to prevent identity theft. If you have credit you have a file at the credit bureau. Your file can be between these 3 major U.S. credit bureaus, TransUnion, Experian, or Equifax. With credit there is good and bad credit. Some examples of bad credit are credit card debt or not paying back loans.With credit card debt it’s easy to fall down a whole and end up having to pay high interest rates and owing more money then you ever can afford. Taking out loans and not paying them back is also a bad thing because loans can have high interest rates and you are just racking up more charges the longer you don’t pay. A bad credit score is considered a 660 or under. Good credit for example is buying things like a house or financing a car. These are examples of good credit because you are buying things you need like a place to live and transportation. A good credit score is 660 and up. You should request a copy of your credit score each year to make sure that the information on your credit score is correct and up to date. You also want to request to see your credit score before buying major purchases like a home or car, apply for a loan, buy insurance, or even apply for a
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