Credit Score and History
Credit Score
When you use credit to buy things, a credit score is a number that grades you on how well you pay back what you owe. Your credit score can change anytime. Your credit score changes because of how you use credit.
Your credit score changes when you pay off debt or take on new debt. Your credit score number goes up if you pay your bills on time. Your credit score number goes down if you miss payments or do not pay your bills.
Everyone has a credit score if they have had a loan or credit card. Your credit score will be checked when you apply for credit. A good credit score will help you get a loan or credit card.
Credit History
A credit history is a record of how debt and money are handled. Credit history will show your loans and credit cards you are using. A bank or business will look at your credit history when you apply for a loan or credit.
Activity: The Cost of Credit
Use this activity to learn more about interest and your credit score. You can print the activity or look at it online and write your answers on your own.