Consumer: Will Maxing Out My Credit Cards Improve My Credit Rating?

The program chair for the campus business club has asked you to present a talk to the group about consumer credit. He saw a newspaper article saying that only 10 percent of Americans know their credit scores. Many consumers, including students, have dangerous miscon- ceptions about their scores. Not knowing your score could result in a denial of credit as well as difficulty obtaining needed services and even a job.

Your Task. Using electronic databases and the Web, learn more about credit scores and typical misconceptions. For example, is a higher or lower credit score better? Can you improve your credit score by marrying well? If you earn more money, will you improve your score? If you have a low score, is it impossible to raise it? Can you raise your score by maxing out all your credit cards? (One survey reported that 28 percent of consumers believed the latter statement was true!) Prepare an oral presentation appropriate for a student audience. Conclude with appropriate recommendations.