First, let's take a look at a course introduction. credit reports and credit scoring are one of the most misunderstood items in an individual's financial life, be it personal or entrepreneurial. In this course, we will not be going over debt collection. Although that topic is vital for everyone to understand. credit scoring and credit reports can be an incredibly complex topic is there's a lot of confusion between what is the truth and what is misleading. That information has been perpetrated by many in the credit fields.
Simply put, credit scoring is a way for creditors such as banks, lending institutions, credit card companies, and any other company willing to give money to an individual for the purpose of profit to minimize the risk. To put it simply, they want to get their money back plus up unless Otherwise, notice the scoring method I'm speaking of is the final scoring method. Now FIFO stands for Fair Isaac company FIFO is estimated to be used by major lenders and creditors in 95% of all credit decisions, whether a creditor will give you credit or not, and at what conditions if they do. By the time you have completed this course, you will understand your rights under the Fair Credit Reporting Act. The right to be informed the right to know the right to a credit score, the right to challenge the right to limitation and scope, the right to your credit report that is restricted and pre screened offers.
You will know how our credit score is derived and what it is. You'll know the building blocks of your credit score, such as hard inquiries, soft inquiries, trade lines, public records and collections. Then we go on to the 500 pillars of your credit score, the payment history, the amount owed, the credit history, the last application for credit and the types of credit. We will go into how to build credit, how things can happen to anybody, how to build installment tradelines, how to build revolving trade lines, the definition of credit utilization, how secured credit cards work and a caveat on secured credit cards feeds. Next we'll go into credit reports. errors on credit reports confusion in the scoring system, misleading FICO scores and mortgage model confusion.
And last, we will go into ways to maximize your credit score. paying bills on time lowering your ratios when to pay a credit card bill. Why you do not pay a debt collector and applying for credit cards over Christmas. also understand that we have what we call fake news. These are myths that permeate the industry. And then at the end we've got a test just to see how much knowledge you have gained.
Now this is the same course that is approved and taught to realtors in the state of Minnesota.