I asked Chatgpt to explain a credit score such as 12, here’s what I was saying

Chat is constantly talking about, but some people may still ask exactly how to use it. One thing Chatgpt does very well is to simplify concepts.

Read -Ne More: I asked Chatgpt to explain Crypto as if it were 12 years, here’s what I was saying

Find out: New retirement problems are facing

For example, we all vaguely know what a credit score is, but the extent of what is determined and how it is calculated is a bit darkened sometimes. To erase things to ask -me minds, I asked Chatgpt to start with the basic foundations And answer exactly what a credit score is and how to create -no one.

I asked Chatgpt to explain what a credit score for me is As if I was 12 years old. This is a good trick you can use when you want anything to break down in simple terms. Chatgpt used concepts that a 12-year-old could relate to explaining what a credit score is:

“A credit score is like a school note, but for money. Show the good you are paying money you give, how when you use a credit card or take a loan. If you always pay on time and do not lend too much, get a higher score (as a A+). If you lose your payments or owe your low score (how to get a d or f).”

“Banks and companies use this score to decide if they can trust you to borrow money,” Chatgpt continued. “A higher score facilitates to get things like a car loan or even a new phone plan.”

This gives you a basic view of what is a credit score. Chatgpt then asked me if I wanted to know how to create a credit score, so I took it on the offer.

Continue reading: I asked Chatgpt to explain how to invest as if I was 12 years old is what I was saying

Chatgpt gave an easy plan to follow six points How to create credit. The first step was to get a credit card or a small loan. Under this point, Chatgpt suggested obtaining a secured credit card where the user pays a deposit before using it. Also suggested to be Added as an authorized user to another person’s cardas a parent or partner.

Chatgpt then said he used credit but “just a little.” Suggested to pay only gas or groceries with the card or loan. Rounded off this point by saying that trying to use 30% or less of the credit limit.

The third point, or as Chatgpt said, the “most important point” was to pay the credit bill each month. He added “even a late payment can hurt your score”, which helps to answer the question that can influence a credit score for new people to the concept.