ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cell phone companies, electric utilities, and landlords may use credit scores to decide whether they will require a security deposit and, if so, how large it should be.

Detailed explanation-2: -Your credit reports include information about the types of credit accounts you’ve had, your payment history and certain other information such as your credit limits. Credit reports from the three nationwide consumer reporting agencies-Equifax, TransUnion and Experian-may contain different account information.

Detailed explanation-3: -Lenders may use your credit report information to decide whether you can get a loan and the terms you get for a loan (for example, the interest rate they will charge you). Insurance companies may use the information to decide whether you can get insurance and to set the rates you will pay.

Detailed explanation-4: -How far behind you are on a bill payment, the number of accounts that show late payments and whether you’ve brought the accounts current are all factors. The higher your number of on-time payments, the higher your score will be. Every time you miss a payment, you negatively impact your score.