"It can be nearly impossible to escape a history of bad credit. Credit is the amount of money you have borrowed and not yet repaid to make large purchases like medical bills, homes, property, school tuition loans, and other types of loans. A credit score is a number that represents your history of loan repayment so future creditors can determine if they will or will not loan you more money."
"Having a good credit score is important because it allows you access to more options in regard to where you live, what car you drive, etc. If you have a good credit score, you are more likely to access better borrowing terms which means lower interest rates, lower monthly payments, and greater options for renting apartments and houses. Having a good credit score helps you have more control of your major life decisions."
"The modern credit scoring models that we use today were implemented in America in 1958. The first credit scoring model called the Credit Application Scoring Algorithm, was created by Bill Fair and Earl Isaac, an engineer, and mathematician. In 1970, the Fair Credit Reporting Act was passed and required credit reporting bureaus to expunge biased data and delete negative history after a certain period of time."
Credit denotes borrowed money not yet repaid used for large purchases like medical bills, homes, property, and tuition. A credit score numerically represents loan repayment history so future creditors can decide whether to lend. A good credit score provides access to more housing and car options, better borrowing terms, lower interest rates, and lower monthly payments, increasing control over major life decisions. Credit scoring evolved from an 1841 Dun & Broadstreet alphanumeric system to modern models in 1958. Bill Fair and Earl Isaac developed early scoring; the 1970 Fair Credit Reporting Act curtailed biased data. FICO became the industry standard by 1989 and now serves most lenders.
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