Credit scores are like financial report cards. But instead of getting grades like “A+” or “B” in different subjects, a credit score represents a person’s financial history, or "credit history," in one three-digit number between 300 and 850, with higher numbers representing a higher likelihood of repaying debts. Credit histories include a borrower’s total amount of debt, repayment history, and other financial behaviors.
Lenders use credit scores to determine how risky approving a borrower for a financial product such as a loan, mortgage, or credit card would be. They’re also used for tenant screening, determining interest rates and the amount of money one can borrow, and more, making a good credit score crucial to a healthy financial life.
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Every tap sets off a lightning-fast relay. When I buy coffee with my Visa, a tiny "runner" races between the coffee shop's bank, Visa's network, and my bank—all in under a second. The catch? No money has actually moved yet. Here's what really happens behind that instant "Approved."
We unpack how your $5 latte triggers a global relay between banks and networks like Visa and Mastercard, trace the 1958 campaign that jump-started the credit card revolution, and reveal how a trillion-dollar system quietly shapes the way we spend.
This Peabody Award–winning "This American Life" episode traces how cheap global money, subprime lending, and Wall Street engineering inflated the housing bubble. Through vivid reporting and real voices, it became one of the defining works of 2000s financial journalism.
Sovereign credit ratings work like national credit scores, measuring a country’s ability and willingness to repay its debt. Moody’s, S&P, and Fitch are the major agencies assigning these ratings, which influence borrowing costs and investor confidence.
Before authorizing a purchase, card issuers consider whether or not the cardholder has a high enough available credit limit to make the purchase, where the purchase is being made in order to reduce fraud, and more.
US consumer debt nationwide totaled $17.9T as of 2024 Q3. Mortgage debt ranked as number one, with student loan debt coming in at number two.
Some credit card issuers also take your other payment obligations into account when determining your credit limit, such as the cost of your rent or alimony.
It’s easy to let your credit score slip without realizing it. Checking your credit score and getting to know what’s on your credit report are the first steps to getting to the “700 club,” or “good score” range, according to one financial expert.
Your credit history is used to calculate your credit score. It includes information such as how often you miss payments (on credit cards, for instance), the types of financial accounts you hold, how long you’ve held those accounts, and more.
A bad credit score can lead to spending roughly $100K more on a typical mortgage. Poor scores also prevent you from getting certain jobs, apartments, and more, hindering you from building wealth in the long term.
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.