Establishing a good credit rating is very important. Most people need to borrow occasionally — to pay for college, a car, or a house — and can get credit only if considered creditworthy by lenders. To gain a better understanding of how creditors determine your credit worthiness, access http://www.ftc.gov/bcp/edu/pubs/consumer/
credit/cre24.htm. Based on what you read, explain your answers to the following questions:

• What is credit scoring?
• What would be the three most important criteria you would set in determining a credit score?
• How do lenders determine credit scores for prospective borrowers?
• How can you appeal an unfavorable credit rating? How can you improve an unfavorable rating?
• To what extent is it important for consumers to know about credit scoring?