TAILIEUCHUNG - Your credit score - CREDIT SCORES ARE VITAL TO YOUR FINANCIAL HEALTH

In support of this assertion, and as a prelude to our analysis below, note that for the 2002–08 period, it is the combined share of direct and indirect cross-border credit that is most strongly correlated with readily available measures of financial As shown in Annex 2, cross-sectional regressions of the share of direct plus indirect cross-border credit (in total bank credit) on a country’s financial openness, as captured by the Chinn-Ito index11 (Chinn and Ito (2008)), reveal a strong positive relationship which is robust to the inclusion of various controls. Corresponding regressions taking as the dependent variable only the share of direct cross-border credit show no. | nstallment loan 4 debt 680 credit Spore S6f _mortgage rate YOUR CREDIT SCORES fairLsaac. Credit scores are vital to your financial health A credit score is a number that helps lenders and others predict how likely you are to make your credit payments on time. Each score is based on the information in your credit report. Why do your scores matter Credit scores affect whether you can get credit and what you pay for credit cards auto loans mortgages and other kinds of credit. For most kinds of credit scores higher scores mean you are more likely to be approved and pay a lower interest rate on new credit. Want to rent an apartment Without good scores your apartment application may be turned down by the landlord. Your scores also may determine how big a deposit you will have to pay for telephone electricity or natural gas service. Lenders look at your scores all the time. They look at your scores when deciding for example whether to change your interest rate or credit limit on a credit card or whether to send you an offer through the mail. Having good credit scores makes your financial dealings a lot easier and can save you money in lower interest rates. That s why they are a vital part of your financial health. Consider a couple who is looking to buy their first house. Let s say they want a 30-year mortgage loan and their FICO credit scores are 720. They could qualify for a mortgage with a low percent interest rate But if their scores are 580 they probably would pay percent or more that s at least 3 full percentage points more in interest. On a 100 000 mortgage loan that 3 point difference will cost them 2 400 dollars a year adding up to 72 000 dollars more over the loan s 30-year lifetime. Your credit scores do matter. Interest rates are subject to change. These rates were offered by lenders in 2005. This publication has been prepared by Consumer Federation of America and Fair Isaac Corporation and was reviewed by the Federal Citizen Information Center. .

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