In this episode, we break down the fundamentals of credit history—the record of a borrower’s responsible repayment of debts that lenders use to determine creditworthiness. We explore how credit scores are calculated using the FICO model, analyzing key factors such as payment history (35%), debt levels and revolving utilization (30%), and the age of credit files (15%).

Tune in to discover:

• How data is used: Why lenders rely on reports to set interest rates and risk-based pricing, and how employers or landlords may use this data for screening.

• The components of a score: The difference between "hard" and "soft" inquiries and why a diverse mix of accounts can boost your rating.

• Consumer rights: How to dispute errors on your report, the specific challenges immigrants face ...