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      🗓️ Recorded: 2/8/2021
      ⏱️ Est. Time: 11 mins
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      Credit Scores Explained

      Credit scores explained in a simple, easy-to-understand way. Whether you're new to credit scores, and maybe you just got your first credit card, or you're just looking to enhance your knowledge and learn how to improve your credit score.

      What this session covers:

       
      Purpose of Credit Scores A credit score acts as a statistical predictor of loan performance by evaluating a borrower's risk factors based on their financial history.
       
      Credit Repositories Data is gathered by three main agencies—Equifax (EFX), Experian (XPN), and TransUnion (TUC)—each using proprietary scoring models.
       
      Scoring Ranges Both standard FICO and VantageScore models generally range from 300 to 850, where a higher score indicates a lower risk to the lender.
       
      Defining "Good" Credit While scores vary, the majority of consumers fall between 600 and 800; a "good" grade is typically categorized in the 740–799 range.
       
      Impact of Adverse Events Significant derogatory events like bankruptcy or foreclosure require specific waiting periods and the re-establishment of credit before a borrower can qualify for new loans.