Saturday, June 12, 2010
Sue Scheff: Teaching Teens About the Importance of FICO Scores
FinanceFREAK.com is an educational website that will enhance your teens level of understanding of the finance world. Starting with your critical credit rating, your FICO score. This number will be more important that your SAT or GPA scores in life.
What is a FICO score?
Your FICO score (credit rating) is a number that will tell lenders how responsible you are with your finances. The FICO score ranges between 300 and 850. The average score of 720 is considered "good".
What makes up a FICO score?
Payment History – 35%
Total Amounts Owed – 30%
Length of Credit History – 15%
New Credit – 10%
Type of Credit in Use – 10%
As teens are entering into adulthood, it is imperative they learn about building their FICO score early. Summer is here, and some teenagers will have summer jobs. This is a great way to start learning about financing and saving for their future.
Learn more about financing through FinanceFREAK.com.