Credit & debt · Module 2 of 8
The number they look you up by
What your credit score is, what goes into your credit report, and the habits that move the number most.
Key terms in The number they look you up by
- Credit score
A credit score is a number produced by a scoring model from the information in a person’s credit reports, intended to predict how likely that person is to repay a loan on time. Lenders use it when deciding whether to approve credit and what rates and limits to offer. People have several scores, because different models and data sources produce different results.
Source: Consumer Financial Protection Bureau, What is a credit score?
- Credit report
A credit report is a statement of a person’s credit activity and current credit situation, including loan payment history and the status of credit accounts. Credit reporting companies compile it from information supplied by lenders and others. Besides lenders, insurers, landlords, utilities and some employers may review reports, within the limits set by consumer reporting law.
Source: Consumer Financial Protection Bureau, What is a credit report?
- Consumer reporting company
A consumer reporting company, often called a credit bureau, is an organization that collects information about individuals and sells it to businesses in the form of reports and scores. Equifax, Experian and TransUnion are the three largest nationwide. In the United States the Fair Credit Reporting Act lets people obtain their reports, check them and dispute errors.
Source: Consumer Financial Protection Bureau, Consumer reporting companies
Every term on Lever is in the money glossary.
About this module
The number they look you up by is part of Credit & debt, one of 15 subjects in Lever. It’s a short run of 8 lessons, about 20 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Credit & debt
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1
What a balance actually costs
How credit cards charge interest, when carrying a balance is free, and when it starts costing you every day.
9 lessons -
3
What a loan is made of
Where each loan payment goes, the fees hiding outside the rate, and how to compare two offers fairly.
7 lessons -
4
Which debts are worth it
Secured versus unsecured debt, borrowing that builds something versus borrowing that doesn’t, and loans built to trap you.
7 lessons -
5
Clearing what you owe
Two proven ways to pay off debt, the cheapest and the easiest to stick with, plus how balance transfers work.
6 lessons -
6
Changing the deal you already signed
Your debt isn’t set in stone. Negotiating, refinancing and consolidating, and what each one costs.
5 lessons -
7
What the loan actually bought
When a car or a degree loses value faster than the loan shrinks, and how to avoid owing more than something is worth.
7 lessons -
8
Paying in pieces
Buy now, pay later and interest-free instalments: when they’re really free, and when they get expensive fast.
5 lessons
Try this module
It’s part of Credit & debt. Lever will bring it to you when you’re ready, or you can go straight there.