Credit Score to Determine Risks

Using Credit rafts to Determine Risk, Fair or unjust? LaShunta T. Little University Composition and Communication II Cynthia Greene Topic: Using Credit Scores to measure Risk I.                    Introduction A.      Why course creed scores are a neat measure   II.                  What is a credit score? A.      Definition of credit score B.      How credit score is determine C.      How to obtain your credit score?     III.                Why credit scores are fair measure A.      Equal Credit Opportunity Act B.      Credit difference   IV.                History of credit A. Previous measures of credit risk B. reading of credit scores V. Summary For most people on that point depart come a time in life when they bequeath need credit. Whether they are purchasing a home or car, applying for a job, obtaining car insurance, or simply applying for a credit card, lenders look at an various(prenominal)s credit archives to determine if they are likely to meet their obligations. Although, we all qualify to meet our obligations in a timely manner there are some extenuating circumstances that can stupefy credit scores to be less than perfect.

Although I do feel that a credit score is not a complete measure of a persons character, I do think that using credit scores as a measure of credit risk is fair. This is the best track to determine a credit risk without discriminating against an individual because of their race, sex, age, gender, occupation, etc. Credit scores are calculated from unlike data that is on your credit report. The data is grouped into fivesome categories and each category has a percentage that reflects the importance in determining your score. Payment history 35%, amounts owed 30%, aloofness of credit history 15%, new credit 10%, and types of credit used 10% all play a part in the formula that determines your score. As a consumer you take hold the right to know what is contained in your credit file. There are... If you emergency to get a full essay, order it on our website: Orderessay

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