Page 16 - increase your credit score
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How Your Credit Scores
Affect You
Imagine you want to buy a car and you’re going to get a loan to buy it. You check rates
with your bank and don’t like what you see, so you shop around a bit and find a lender
who has rates you like.
When you apply to get the loan, whether or not you’ll get the rate you like is based on, for
the most part, your credit scores.
Those scores tell the lender how trustworthy you are and calculate the chances, more or
less, that you’ll pay back the loan.
The lender looks at your score or scores, puts your income into the mix and decides on
how much they’ll loan you and the APR they’ll give you.
This is a real-life example of how credit scores affect your daily life, but the one thing
missing from this example is real numbers.
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