I asked Chatgpt to explain a creditworthiness as if I were 12 – here is what it said

Chatgpt is always talked about it, but some people may still be wondering exactly how to use it. One thing that makes chatt really well is the simplification of concepts.

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For example, we all know what is a creditworthiness, but the extent of what it determines and how it is calculated is sometimes a bit cloudy. In order to clarify things for the question service, I asked Chatgpt to start with the basics and to answer exactly what a creditworthiness is and how to build one.

I asked Chatgpt to explain what a creditworthiness is for me, as if I were 12 years old. This is a good trick that you can use if you want to have interrupted something in simple terms. Chatgpt used concepts to which a 12-year-old could refer to explain what a creditworthiness is:

“A creditworthiness is like a school grade, but for money. It shows how well you can pay money back, which you borrow – like you use a credit card or take out a loan. If you always pay on time and do not borrow too much, you will receive a high number of points (like a A+).

“Banks and companies use this score to decide whether they can trust them to borrow money,” continued chatt. “A higher score makes it easier to get things like a car loan or even a new phone plan.”

This gives you a fundamental overview of what is a creditworthiness. Then Chatgpt asked if I wanted to know how to build a creditworthiness, so I accepted the offer.

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Chatgpt gave an easy-to-follow six-point plan to be built on how to build credit. The first step was to receive a credit card or a small loan. Under this point, Chatgpt proposed to receive a secure credit card on which the user pays a down payment before using it. It was also proposed to be added as an authorized user on the map of one other than parents or partner.

Next, Chatgpt said to use the credit, but “just a little”. It suggested only to pay gas or food with the map or the loan. It rounded off this point by trying to use the credit limit for 30% or less.

The third point or, as Chatgpt said, the “most important point” was to pay credit bill every month. It added that “even a late payment can affect your score”, which can answer the question of what can influence a creditworthiness for people in the concept.