Credit Rating
This term, in the most general sense, refers to a judgment made concerning a consumer’s ability to pay credit bills or repay loans. These types of judgments are made by reviewing the consumers credit report and information relating to employment and income. This rating is often describes in terms of credit scores, a numeric system of credit rating usually based on the system devised by the Fair Isaac Company.
It is important to the consumer to make the best effort to protect his or her credit rating by the responsible use of credit. There are many free or low-cost educational programs available, many easily accesses via the Internet, designed to teach credit management skills. For those seeking to improve a bad credit rating, credit counselling services, both through non-profit organizations and through for-profit businesses, offer a wide range of information and services to help repair damaged credit.