About Eastwood

How Credit-Savvy Are You?

How Credit-Savvy Are You? Take this quick quiz:

1. Which life event(s) can affect your credit report?

a. Marriage or divorce
b. Death of spouse
c. Buying a home or car
d. Loss of employment
e. All of the above
Answer: e

2. In general terms, your credit score is a combination of:

a. Payment history
b. Outstanding debt
c. Length of time you've had credit history
d. Number of inquiries
e. Type of credit you currently have
f. All of the above
Answer: f

3. Which component of a credit score carries the most weight?

a. Payment history
b. Outstanding debt
c. Length of time you've had credit history
d. Number of inquiries
e. Type of credit you currently have
f. All of the above
Answer: a

4. What is the median FICO score?

a. 300
b. 400
c. 560
d. 720
e. 801
Answer: d

In 1989, a mathematical score was created by Fair, Isaac and Company in partnership with Equifax. Called the FICO score, this rating system (and similar others created since) is the basis for a consumer credit score. It basically boils down the credit report to a number, ranging from 300 to 850. The higher the score, the better the credit rating. The median score is about 720. While lower credit scores may still be approved for credit, they generally pay a higher interest rate to offset the additional credit risk.

Want to know your credit score? Contact:

Equifax www.equifax.com
Experian www.experian.com
TransUnion www.transunion.com