Here are some commonly used and misunderstood terms that can help you protect your money!
Credit Score – a measurement of the risk of loaning you money. FICO – Fair, Isaac Company – Bill Fair and Earl Isaac started the data analytics company in 1956
o Range is 300-850 – 760 or more is good!
o Keep yours high, pay bills on time, don’t open lots of accounts
o Based on payment history, debt total and type, credit history, new credit inquiries o Fun fact: In 2013, lenders purchased more than 10 billion FICO scores and about 30 million American consumers accessed their scores themselves
o Myth: Checking your credit score is bad for your credit.
Good Debt – generally a justifications for over-leveraging! (Another interesting term which means getting more debt than is financially healthy.)
o Good or bad is more style, comfort, and ability to pay it off.
o Secured debt – is attached to an asset, like a car or house.
o Unsecured debt – credit card balance for dining out.
o Lump this one in with “write offs” – David Rose scene in Netflix Show