Why is it so easy for most people, even young students, to obtain credit? How does the issuer of a credit card, a student loan, or a mortgage know how much risk it is taking in extending credit to a particular borrower? If every lender had to conduct a complete investigation of every borrower’s financial history, getting a loan would be difficult and expensive. Fortunately, credit reporting agencies act as middlemen. They receive information from lenders about borrower accounts and consolidate that information in the form of a credit score, which they make available to potential new lenders. Your credit score represents your overall creditworthiness. It affects your ability to obtain credit and the interest rate you will have to pay for future loans. Your credit score can be a valuable asset or a major burden, so learn how to take care of it.
This section will help you answer the following questions:
- Manage Your Finances
- Make Today's Decisions
- Prepare for Your Future
- Save Money At Duke
- Request a Workshop
Protect your credit. Eventually you will probably want to borrow money for a car or a home, and you'll minimize your interest rate by maintaining pristine credit. So make yourself a credit card company's worst customer: pay your bills on time and never carry a balance.