SIFE Financial Corner

U-News Staff

Each week, the Students in the Free Enterprise (SIFE) Team from the Henry W. Bloch School of Management, with assistance from a group of respected business people, will answer your financial questions.

Viraj Patel, a Pharmacy major, asked what is a credit score and how is it used?

The basic definition of a credit score is a three digit number based off of an analysis of your credit report.

Some of the main elements that go into your credit score are payment history (account payment information), amounts owed, length of credit history, new credit (new accounts and credit inquiries) and types of credit used (different account types).

Your credit score helps lenders determine how much of a risk factor you are before they lend you money.

Common activities that usually require a credit check are buying a car, renting or buying a house, or the purchase of any other high dollar item.