Credit Analysis : Credit For A Living Essay

701 Words Oct 19th, 2014 3 Pages
Credit for a Living
College is the stepping-stone to the “real-world” that commonly gives students their first taste of independence. Although it may not have hit the mind of some students yet, establishing a line of credit is a vital part of that independence. This is a great time to learn how to establish a healthy line of credit that will benefit and guide you to better financial decisions. Without the knowledge and understanding of credit, mistakes can only lead to a costly path in the near future.
People often realize the importance of credit history at a point in life when it is most needed. That is why starting off on the right path, with a good credit score, can be an important attribute for any individual to have. Not to get confused, a credit score and a credit report are different, but also related. A report is the credit history that contains records of a consumer’s ability to repay debt and how often they pay their bills on time. On the other hand, a credit score is a number that represents the credit risk of the consumer, based on the data in the credit report. Many financial institutions review credit report in order to gain an idea of how responsible a consumer is financially so they do not pose a threat to the institution. With the data gathered in a credit report, lenders use the information to determine qualifications for a loan, credit card, and interest rates. Maintaining a high credit score can only be beneficial to an individual opening many door;…

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