Credit Exposure

Finance allah shmoop What are credit scores and credit worthiness

Remember that scene from wayne's world Alice cooper lets him

backstage They bow and chant Where'd i worthy We're not

worthy Well basically just swap one of the greatest rock

and roll singers with your local banker Yeah well as

much as you'd rather hang out with alice cooper this

nerdy guy here is wet A more important to your

credit That long hair thing worked when he was in

his twenties And not so much now I guess Anyway

if you have a bank account or a credit card

or are generally tapped into the banking and credit system

of the world in any way shape or form you

have a credit score You might not know it But

you do Where does that score come from And yeah

It's known as yours Fico score While fico stands for

fair isaac corporation that's a publicly traded company and that's

what they do they provide credit scores and they try

to be fair like isaac Anyway those scores were requested

and released through one of the big three credit bureaus

Equifax experian in trans union Oh my These guys give

you a number That kind of thing finds your reliability

in making payments to banks or other lending institutions who

might loan you dough Well why would you care home

Because that number you get directly affect the price you

pay to rent money The worst Your credit score the

higher your rent have will likely be in who likes

to pay high rent especially when it comes to renting

money Well the worst fico score is a zero and

were wondering what you'd need to have done Teo get

that like three bankruptcies in a bank robbery Maybe Well

we want to meet the third guy who loaned you

money at that point Anyway the bill gates perfect score

is an eight Fifty on such a show off And

here are roughly the breakdowns for how banks think of

credit Score c it's all color coded here with the

red yellow and green Well the goal here in having

a score is to determine your reliability in paying back

a given loan Yes the amount you're borrowing also matters

But to speed up the initial evaluation of you is

a borrower Wealthy credit score is applied to you and

it lets banks quickly come to a yes or no

or ah maybe decision Yeah quickly that credit score thing

helps and if the answers and no well then you

can always backpack across the country and stay in youth

hostels So yeah you don't want to be murdered by

a deranged dutch businessman and we suggest you stay current

on your us visa payments and have a high credit 00:02:30.173 --> [endTime] score Be creditworthy because you are worthy Hope yellow